Gold Coast development: New data reveals impact of COVID on construction and building

New data shows the true impact of COVID-19 on the Gold Coast’s development sector, with one figure in particular revealing a lot about the future. SUBSCRIBE TO SEE WHAT IT MEANS FOR YOU.

THE Gold Coast’s multibillion-dollar development industry has withstood the COVID downturn, a new report shows – and one figure in particular tells us a lot.

Council’s quarterly development activity report, to be presented to the planning committee on Thursday, reveals plumbing applications, considered a good indicator of construction activity, were up 9.6 per cent to 1252 on the previous year.

Other key data included:

● 1161 applications were received in the April-June quarter, a 7.4 per cent increase on the same period in 2019.

● 4378 applications were received in total for the 2019-20 financial year. This figure was in line with the 2018-19 financial year and a historically high number.

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Artist impression of the Old Burleigh Theatre Arcade which was submitted just before the end of the financial year. Artwork Supplied

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● Development application revenue is $2.6 million above the council’s budget forecast.

Building approvals remain high and slightly below 2018-19 numbers, with 10,451 granted in 2019-20 compared to 10,983 the previous year.

Planning boss Cr Cameron Caldwell said the figures were welcome given the significant downturn in the tourism industry as a result of the pandemic.

“Increased development application numbers show continued confidence in the Gold Coast economy,” he said.

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Cr Cameron Caldwell Picture: Jerad Williams

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“The construction sector is an important pillar of the Gold Coast economy, and cranes in the sky mean jobs on the ground for locals.

“While construction activity has remained strong we will keep a close eye on the sector as we emerge from the COVID crisis.”

The plumbing approval data represents a significant turnaround from December 2019 when a council report revealed it was down 69.5 per cent.

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The number of applications received by council to that point in the financial year were down 13.4 per cent.

At the time, industry leaders rejected suggestions of a prolonged downturn, saying the decline was in line with national trends and they expected the city to back bounce in 2020.

They pointed to more than $1 billion of work already signed off during the financial year.

Projects to broke ground in the 2019-20 financial year included The Star’s Dorsett tower and Sunland’s $250 million luxury tower which is now under construction on Mermaid Beach’s exclusive Hedges Ave.