Gold Coast development: Light rail and road projects must be fast-tracked to support more towers
Infrastructure investment must be stepped up to cope with the Gold Coast’s booming population, after Covid-19 sparked record development activity, a property expert warns.
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INFRASTRUCTURE investment must be stepped up to cope with the Gold Coast’s booming population, after the Covid-19 pandemic sparked record development activity, a property expert warns.
Developers are fast-tracking new towers across the city to cope with the highest demand for property since the 1980s and rapidly increasing population.
But funding for new and improved infrastructure is not matching this growth, University of Queensland property expert Professor Shaun Bond says.
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Mr Bond, who said Covid had reshaped the city’s economy, adds: “The pandemic has brought forward five years of activity and squashed it into 18 months.
“This is why we are seeing such tremendous pressure on property prices and rents. The development pipeline hasn’t been able to cope with the sudden increase in demand.
“The big challenge for the Gold Coast will come when the world starts to move beyond the pandemic and there will be more pressure for people to return to the office.
“We need to be pressing ahead quickly to build the infrastructure, develop the amenities, and support new business creation in a way that will provide a compelling reason for people to stay rather than return to Sydney, San Francisco or London when the world opens up again.”
Construction of the Gold Coast’s biggest infrastructure projects has been beset by delays and cost blowouts in the past year.
In April, the Bulletin revealed the cost of the 6.7km extension of the light rail from Broadbeach to Burleigh Heads had blown out from $700m to more than $1.04bn.
In September, it was revealed the cost of building the Gold Coast’s second M1 will blow out by more than $600m.
In making the revelation last month, State Roads Minister Mark Bailey blamed it on the pandemic leading to soaring materials prices. His state government committed to just over half of the $600m shortfall, but the Scott Morrison government said it had already done its bit and reneged on stumping up the other $300 million. Filling the funding gap remains in limbo.
The blowout on the first stage of the six-lane, 45km arterial road, which will run from Nerang to Logan, means it will now cost at least $2.1bn, a little short of the $2.4bn budgeted for the entire project.
Prof Bond said a large movement of people into the Gold Coast in the past 18 months – particularly from the southern states – was reminiscent of a booming influx of migrants in the late 1980s and early 1990s which had helped transform the Gold Coast.
Among the latest developers putting shovel to soil is Lacey Group. It has appointed construction company Hutchinsons to build its $35m, nine-storey Monroe tower project at Palm Beach which will have 33 luxury units and its $63m, 14-storey Del Ray apartments at Kirra which will have 72 units.
Demolition works on both sites have been completed, with construction scheduled to take off in October.
Group director Adam Lacey said both projects, which will be on the future light rail route, had sold quickly.
“We are thrilled with the consecutive sales success of the Monroe and the Del Ray, both of which have been incredibly well received,” he said.
“Palm Beach and Kirra are arguably two of the hottest beachfront markets on the coast right now, so it’s an exciting time to be pioneering the next generation of luxury living on its shores.”
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