Gold Coast development: Leading developers call for council to cut red tape and fast-track projects

The Gold Coast’s leading developers say billions of dollars worth of projects could save the city’s economy - but some major problems are holding them back.

The Gold Coast’s leading developers say council’s “slow” approvals process is standing in the way of uncorking billions worth of development projects needed to revitalise the economy.

Pressure is growing on the council to intervene in the city’s second-biggest sector to minimise the pain of the COVID recession by slashing red tape and dramatically speeding up approvals.

Sunland founder Soheil Abedian said it was critical the Gold Coast City Council temporarily established a “special projects” committee with power to assess and approve projects in just 60 days.

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Soheil Abedian Picture: Tertius Pickard

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“This would ensure developers can capitalise on the strong demand already being witnessed from NSW and Victorian buyers. Right now it is impossible to get a fast approval yet the Gold Coast’s market conditions are far better than NSW or Victoria and we have to seize this opportunity.

“The key to any project is its bankability and if we can minimise the risk to financiers by speeding up the projects you will see banks more willing to assist because of these market conditions.

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Artist impression of Pacific View Estate at Worongary - It’s one of the larger projects now awaiting approval.

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Mr Abedian, behind the Q1 and Palazzo Versace, said the measure would only be necessary for a year to unclog the multi-billion dollar development pipeline and get projects started.

Mayor Tom Tate insisted there was no plan for such a committee and council recently introduced COVID measures to help the industry.

“Ensuring the city has a strong economy is one of our priorities and I have confidence in the industry even at this tough time,” he said.

“However, we have released a raft of measures to help ‘mum and dad’ developers and also larger sized companies which we believe will go a long way with the recovery efforts.”

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Gold Coast Mayor Tom Tate. Picture: Jerad Williams

Measures already introduced by council to aid the industry in the wake of the pandemic included streamlined assessment processes for small-scale projects and 50 per cent fee reductions until October 2021. Other fees and charges have also been waived until late 2021.

Aniko Group is developing the $140 million Grand Avenue project at Hope Island.

Its managing director, George Mastrocostas, said demand was high for new housing and urged the council to take greater steps to allow new projects to begin: “From small developments to major projects, we are a labour-intensive industry that supports thousands of jobs and local businesses, and that’s what the Coast needs right now.

George Mastrocostas from Aniko Group

“Demand for properties is there, and that’s a big plus for the city as more interstate migrants look to relocate to the Gold Coast due to the pandemic; so getting projects off the ground sooner will help our economy recover more quickly.

“I have no doubt we will get back on its feet once the pandemic is behind us, but in the meantime the council should leverage off our industry to build momentum towards this.”

Artist impression of the proposed Pacific City development in the Norwell Valley. Picture: Supplied.

The Queensland Master Builders Association have called for the council to consider reviving its “Construction Kickstart” incentive scheme which slashed infrastructure charges for “shovel-ready” projects.

The 2013-14 scheme fuelled a 20 per cent spike in development applications, and a 111 per cent increase in residential projects, injecting more than $885 million into the economy.

The scheme involved the slashing of council infrastructure charges by 50 per cent for all projects that began construction within six months of approval.

David Ransom

Leading town planner and former UDIA boss David Ransom proposed other options for stimulating the industry, including lowering the minimum allotment size for subdivisions in the low density residential zone to 300-400 sqm, down from the current 600 sqm.

He also suggested prioritising changes to the City Plan to “uplift” development potential to cater for medium rise apartments and mixed-use projects along the light rail stage three corridor between Broadbeach and Burleigh Heads.