Coronavirus Gold Coast: $4B economic stimulus package to be announced as developers call for help
A $4 billion economic stimulus package to save jobs and businesses will be announced today as developers cry out for an industry lifeline to put more cranes in the sky.
Business
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PREMIER Annastacia Palaszczuk will today unveil details of the long-awaited $4 billion stimulus package to reboot the state’s economy as developers cry out for an industry lifeline.
The Bulletin understands there will be funding set aside to fast-track infrastructure projects as well as employment boosting measures.
Leading Gold Coast developer Soheil Abedian, who has witnessed four major economic downturns during his four decades at the helm of Sunland Group, said it was critical for both State Government and the council to throw support behind the multi-billion dollar construction industry.
He said economic stimulus directed at fast-tracking development would create jobs and help the Coast avoid the prolonged downturn it experienced after the late 2000s global financial crisis.
“What is important is we need to understand the dynamic of how society has changed as a reality of COVID-19,” he said
“We have to be behind small business and the institutions such as council and governments who must see what they can do to give hope that these circumstances will be short-lived.
“Now is the time to see how can we really put our egos aside, developers and government both, and see how we can move forward.
“There must be some take and give in this process because we have to look at what is good for all people.”
Mr Abedian, Sunland’s executive chairman, called for the state government to unwind “unsustainable” red tape and is pushing for the council to introduce a 50 per cent discount on developer charges in order to fast-track shovel-ready projects from the drawing board to reality.
“This city will succeed no matter what will happen with external factors. Nothing can stop the process of the best city in the world,” he said.
“If the council and the Government can give us relaxations, they should do it with approvals only granted for a two-year period.
“This means there will be no speculators getting into the market, just people who are serious about creating jobs.”
Mr Abedian’s proposal is similar to the council’s post-GFC Construction kickstart program which slashed infrastructure fees and revived the sector in the early 2010s.
Sunland’s four major Gold Coast projects, including the $250 million Hedges Ave tower and the $1.3 billion The Lanes mini-city at Clear Island Waters, have continued despite the financial downturn.
Master Builders Queensland has backed the push, saying it was critical both the State Government and council push the button on infrastructure projects.
“Construction Kickstart worked well after the financial crisis and got us through it then, so all we are asking for now is for council and the state to have a plan,” Gold Coast general manager John Duncalfe said.
“Our industry supports so much retail and other related businesses that if we fall down, the impact on the city will be massive.”
Urbis’s latest Gold Coast Essentials report revealed strong sales before the pandemic left the Coast in a strong position but warned there were risks, despite several developments still moving ahead.
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The report revealed the Gold Coast apartment market recorded 265 sales in the first quarter of 2020, tracking above the two-year quarterly average of 238 sales.
“We will be monitoring this market closely to see if the COVID-19 border restrictions are impacting the market,” Urbis senior consultant Lynda Campbell said.
“The Gold Coast apartment market has moved into the COVID-19 environment in a much better position than it was going into the GFC. The next quarter’s results will be highly anticipated.
“Interest rates are still low, and there is not a large volume of expensive product aimed at investors, as was the case going into the GFC and though we expect sales to slow, conversations with developers suggest that inquiry is still strong.”
According to the report, actively selling supply is sitting at around 1000 apartments – the lowest level recorded in more than five years.
Brisbane-based developer Spyre Group began construction of its $77 million Natura tower late last week, while developers Keylin Group and Kinstone Developments are gearing up to launch the long-awaited $650 million Serenity 4212 project in the city’s far north.
Meanwhile, Robert Badalotti, one of the city’s most experienced developers is preparing to launch a $155 million residential, commercial and hotel, to be known as Imperial Square.
It will be the first stage of a $1.2 billion development which will include Australia’s tallest tower.
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