Gold Coast Light Rail Stage 4: Property prices set to explode for Burleigh to Tugun properties near trams

The Gold Coast light rail has helped lead a national “renaissance” of trams, with a new report revealing the astonishing impact it has already had on local property prices.

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THE Gold Coast light rail has helped lead a national “renaissance” of trams, a new report reveals.

The Renaissance of Light Rail research paper compiled by the Australasian Railway Association analyses the first five years of the trams on the Coast and its short and medium-term legacy, including boosts to property prices and public transport usage.

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Key findings reveal:

● Land values increased for properties surrounding the existing tramline had increased by more than $300m.

● Overall public transport usage on the Gold Coast increased by more than 25 per cent following Stage 1 first taking passengers in July 2014.

● Traffic on Southport’s Scarborough Street had fallen by 47 per cent in the past decade while the number of people boarding the tram in the suburb had increased 36.5 per cent between 2014 and 2019.

Artist impression of Gold Coast Light Rail Stage 4 at Tugun

“The key measures indicate that there has been significant year-on-year patronage growth, the number of vehicles at the measured sites continues to decrease, additional active frontages have been created throughout the study area along with a significant number of development approvals,” the report reads.

“Regular surveys of residential and commercial building ‘edges’ – how they ‘front’ or ‘hit the street’– close to centres of activity have been undertaken in the light rail corridor.

“Since 2013, almost 2km of additional active frontages have been created throughout the study area, predominantly through the construction of new buildings and renovation of old buildings, and mostly through the conversion of previously ‘inactive’ frontages.”

Artist impression of Gold Coast Light Rail Stage 4 at Currumbin.

The report was written this year to reflect “the role light rail has played in Australian society” and uses the Gold Coast system as one of its key case studies.

The report found: “A new appreciation for what light rail delivers has led to a renaissance of light rail projects across the country.”

“The combination of urban regeneration, amenity and reliability has seen light rail return to Australian cities to help revitalise CBDs and attract investment,” the report reads.

“Light rail with in-ground steel guide rail systems has comparatively greater land use and place-making potential and provides greater capacity to move passengers than buses.

Artist impression of Gold Coast Light Rail Stage 4 on the Gold Coast Highway at Tugun.

“Light rail also provides a more flexible solution than heavy rail or metro systems which are highly complex, require significant investment and have lengthy lead times to deliver and commission.”

It notes that buses and other emerging technologies could be successfully adapted to work in cities but warns trackless trams have “limited use” globally.

The report, published during the April-June quarter, comes as the tram this week marks seven years since the first passengers boarded.

Early construction work is underway on Stage 3 between Broadbeach and Burleigh while public consultation began this month on Stage 4, which will run between Burleigh and Coolangatta via Gold Coast Airport.

Cash in: Light rail’s ‘massive’ boost to property prices

PROPERTY adjacent to the proposed route for light rail Stage 4 to the airport are predicted to increase in value by up to 20 per cent in the next three years.

Real estate experts say maps released this week of the state government’s preferred 13km line from Burleigh Heads to the border will have an “immediate” impact on property prices within 1.2km of the track.

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The new tram stations between Burleigh Heads and Tugun.

Ray White Surfers Paradise boss Andrew Bell said he expected prices in Palm Beach, Currumbin and Tugun to increase by up to 20 per cent before ground breaks on the public transport extension.

He based the forecast on how light rail stages one and two previously impacted the property market.

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“The strongest growth will occur in the lead up to (the tram) becoming a reality in anticipation that it will be fantastic and allow people to leave their cars at home,” he said.

“You could expect that properties within 1.2km would get a fairly quick 10-20 per cent increase to start with and that will be over a couple of years as more people decide that’s where they want to live.

Images: Evolution of Gold Coast light rail

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“I have seen how it has changed suburbs like Southport, which went from a suburb nobody went to, to one which they say it’s a good central location to live.”

However, some residents of Palm Beach are concerned over planned partial or total resumptions along the route, and the effect the line will have on traffic and business.

Properties along the Gold Coast Highway at Tugun are among those that will be most affected.

The light rail has proven to be a major driver of property value increases for surrounding suburbs in the past decade.

Prices in Parkwood jumped by 27 per cent in the three years to the Stage 2 opening date in late 2017.

Stage 3, between Broadbeach and Burleigh Heads, is anticipated to boost the value of surrounding properties by up to 30 per cent.

Gold Coast property prices have been on a rollercoaster ride in the past year, surging more than 12 per cent.

Palm Beach values rose 11.3 per cent, one of the biggest jumps in the state.

Harcourts Coastal Properties principal Dane Atherton said Palm Beach in particular had already recorded significant price increases in the past 12 months.

“These are already hot suburbs and this extension will only further enhance them for buyers,” he said.

“Infrastructure certainly helps and buyers have already factored it in.

“I think this one will be more heavily used by locals rather than tourists.”

It comes as a new interactive map by the Department of Transport and Main Roads shows how the streets surrounding the tram route will be revamped.

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