Gold Coast development: Coast’s $11 billion construction industry to withstand coronavirus downturn

A forecast of the Gold Coast’s $11 billion construction industry has delivered some interesting truths as the coronavirus crisis hits home.

THE Gold Coast’s biggest industries are set to help the city withstand the worst of a coronavirus-inspired economic downturn.

A Property Council lunch at the Star Gold Coast was yesterday told the Coast’s construction and development industry as well as education and health remained strong despite the tough economic times.

Clinton Ostwald, group director of property research firm URBIS, said a market outlook for the Coast showed a city facing challenges.

Storm clouds gather around the highrises of Surfers Paradise as the economy struggles. Picture Glenn Hampson

“The Coast is hitting a tipping point to being a more stand-alone city with its own internal generators,” he said.

“There are a lot of external factors that are going to influence how the Gold coast economy will hold and how the local economy is going to work.

“Of the Gold Coast, 69 per cent of the workforce are in white collar jobs, which is a sign of maturity in the economy.”

Mr Ostwald said construction was the city’s biggest industry, and worth $11.8 billion to the economy followed by rental, hiring and real estate and manufacturing.

Much of the discussion centred around the impact on the economy and the way forward, including the need for more infrastructure.

The extension of the light rail to Gold Coast Airport was also discussed as being essential if the southeast Queensland 2032 Olympic Games bid is to be successful.

It comes as the Gold Coast business community expressed mixed feelings about Prime Minister Scott Morrison’s $17.6 billion surplus-blowing coronavirus stimulus package.

Gold Coast North Chamber of Commerce secretary Gary Mays

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Gold Coast North Chamber of Commerce president Gary May said any policies that kept people working were positive, especially since the Coast was the small business capital of Australia.

“But like always the devil may be in the detail. We’ve seen subsidies ripped off to hell before which is what worries me, so I hope there’s checks and balances in the system,” he said.

“The principal is sound because it’s going to keep people in jobs and that’s got to be a priority. Let’s hope it’s enough to keep Gold Coast businesses operating and keep employees paid,” he said.

Mr Mays praised a decision to give $25,000 tax free to businesses with a turnover of up to $50 million and welcomed an increase of the instant asset write-off threshold from $30,000 to $150,000 for businesses with up to $500 million annual turnover.

Martin Hall, president of Gold Coast Central Chamber of Commerce, described the stimulus package as “more positive than not” but said locals had a role in helping their city ride out the pandemic.

“The Gold Coast is knocking on the door of a million people and we’ve got to encourage locals to keep spending money as well as continue to run campaigns to attract visitors,” he said.