Gold Coast development applications at record high

DEVELOPMENT applications on the Gold Coast are at their highest levels in our city’s history with figures topping the 1980s and pre-Global Financial Crisis peaks.

The Commonwealth Games village at Parkwood is nearing completion. Picture Glenn hampson

DEVELOPMENT applications on the Gold Coast are at their highest levels in our city’s history with figures topping the 1980s and pre-Global Financial Crisis peaks.

Council figures obtained by the Bulletin show 4900 applications were made in 2016, the highest ever recorded.

City leaders and experienced industry figures say the number of applications, nearly double 2012’s 2510, has pushed beyond the heights of the freewheeling 1980s overseen by former premier Joh Bjelke-Petersen.

Experienced developer and former Gold Coast alderman Norm Rix said the numbers had outstripped the Japan-led construction boom of the 1980s and showed greater promise.

Surfers Paradise, Paradise Waters and Macintosh Island in 1986.

“I believe this is bigger than the development invasion we had in the 1980s which was more about golf courses and tourist resorts whereas this is highly varied and goes from houses to service stations and high-rise buildings,” he said.

“This is bigger and broader than what we saw in the 1980s which was a boom that did not last all that long whereas this has already been much longer lasting.”

Developer Norm Rix. Picture: Regi Varghese

Mayor Tom Tate said the figures reflected the growing confidence in the city.

“These figures underscore the confidence investors and developers are showing in our city,’’ he said.

“This is the ingredient for more local jobs, greater employment through the supply chains, and a renewed energy about the city.’’

The Sheraton Mirage being built in 1987.

Of the 4900 applications filed, the majority are residential projects, houses and homes as well as a mixture of multi-billion dollar towers and major projects, including the $800 million Jupiters Hotel and Casino development.

Major projects expected to be lodged this year include ASF Consortium’s $3 billion integrated resort at The Spit, which will be assessed by the State Government rather than the council, and Sunland’s $600 million The Mariner, which was shelved for a year in September 2016.

Surfers Paradise looking down on Orchid Avenue and the Gold Coast Highway circa 1981. Picture by Ray Sharpe. Picture courtesy of Gold Coast Local Studies Library

The Gold Coast’s development industry was hit hard by the late 2008 financial crisis, which forced projects to be shelved and ended the careers of several major developers.

The impact on the industry is reflected in the number of applications filed with the council over the past decade, with the numbers falling from 3477 in 2008 to 2911 in 2009.

An artist’s impression of ASF's Gold Coast Integrated Resort.

The application slump bottomed out in 2012 with 2510 before bouncing back in 2013 with an extra 600 lodgings.

Council planning boss Cameron Caldwell said the spike in planned projects came on the back of the council’s construction kickstart initiative, which slashed infrastructure charges for projects that were fast-tracked.

Acquis’ Tony Fung unveiling plans for a new $440 million six-star hotel at Surfers Paradise. Picture: Richard Gosling

“We have worked hard to improve the economic settings within the city and the construction kickstart initiative was the initial trigger to stimulate activity,” he said.

“We have since seen a sustained and steady increase to what are now record levels.

“Recently we have seen positive sentiment translate to actual activity on the ground.”

Concept image of the Ispire tower, planned for the Cav's Steakhouse site at Labrador.

Last year began with an application to redevelop the iconic Cav’s restaurant at Labrador and ended with cashed-up Hong Kong developer Aquis filing plans for a $440 million hotel overlooking Main Beach.

The Broadwater, Seaworld and Southport from the air in 1980.

Long-time real estate figure and former councillor Max Christmas said development application figures provided an indicator of the strength of the market but were not a crystal ball on its future.

“They are a sign that developers are taking notice but this does not necessarily say they are all going to be built,” he said.

“These figures are not a crystal ball but give an idea of an anticipated future. The good times do not last forever and this applies to everything, including real estate.”