Gold Coast development: $1.6B of tower developments stalled over COVID-19 delays

Developments worth billions, including a tower which would become one of the world’s tallest, have been delayed for one shocking reason as a leading property expert says the industry is ‘fragile’. FIND OUT ALL THE DETAILS

DEVELOPMENTS worth more than $1.6 billion have been delayed as a result of COVID-19, compounding the Gold Coast’s growing housing supply issue.

While much of the city is undergoing a building boom on the back of surging interstate migration, the pandemic has forced some developers to ice their plans.

In the past year, 15 developers - including landowner and Hong Kong billionaire Tony Fung - have lodged documents with the Gold Coast City Council asking for extensions to the approvals granted for their projects.

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The Proposed Aquis Pacific Point in Surfers Paradise.

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Many of these developments were approved in 2016-17 but yet to begin, meaning their approvals over each site are on the verge of expiring.

Mr Fung this week asked council for an extension on Aquis Pacific Point, a proposed $440 million, 580-room hotel planned for a site on Main Beach Parade.

The Aquis boss has been attempting to sell the $24 million site for the past three years but its approval is due to expire in early June.

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Tony Fung. Picture: Richard Gosling

Matthew Schneider, director of the Gold Coast branch of consulting firm Urbis, said some developments had faced challenges despite the booming property market.

“The Gold Coast development industry came through 2020 in an unexpectedly strong position. What we have seen emerge over the past 12 months is an intensification of the strengths and weaknesses in projects across the marketplace,” he said.

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“In particular, projects which have been well designed and positioned to respond to market demands have strengthened, especially in boutique projects with great access to infrastructure and amenity while some of the larger, investor-driven residential projects have faced challenges among the uncertainty.

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Artist impression of the Orion Towers proposed for Surfers Paradise

“The strength of the sector is fragile though. The complex challenge of housing affordability is now intensifying across the city; driven by very tight land supply, record low residential vacancy rates, the strength of the luxury residential sector and land fragmentation.”

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Among the other projects to be delayed by the pandemic uncertainty are a small unit tower on Surfers Paradise’s Sunrise Boulevard and the giant $1.2 billion, 106-storey Orion Towers in Surfers Paradise which are planned for a Surfers Paradise Boulevard site between Enderley and Markwell avenues.

Orion developer Orion GoldMark has filed an application with the Gold Coast City Council for a four-year extension on the project, meaning it has until 2025 to start construction.

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Both cite the pandemic, while in the case of the Sunrise Boulevard project, the developer is noted as being trapped overseas.

“The current public health emergency - COVID-19, has further compounded the need to seek an extension of the approval,” a letter lodged with council by the project’s town planner said.

“The extended currency period will allow our client, who is currently ensconced in Europe with no ability to return to the Gold Coast in the short to medium term, to make appropriate arrangements to under take the project in the near future.”