Star Entertainment Group’s Geoff Hogg forecasts boom in apartment sales on back of coronavirus crisis

Apartment sales are forecast to surge on the Gold Coast, with business figures increasingly confident a new boom is on the cards once one key thing happens.

THE Star Entertainment Group’s MD for Queensland is forecasting a surge in new apartment sales on the Gold Coast once border restrictions to NSW and Victoria are lifted.

Geoff Hogg said the boom would come off the back of strong domestic tourism and potentially in three years time the return of international visitors in force to the Glitter Strip.

Star is pushing ahead with its $2 billion masterplan, which includes four new towers with 1794 apartments and 518 rooms eventually taking the site to seven high-rises.

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Star Entertainment Group’s MD for Queensland Geoff Hogg. Picture Scott Powick

Construction of the Broadbeach Island’s third tower – to 53 storeys and anchored by The Dorsett hotel – is on track for 2022. Presales have started for the fourth 63-storey Epsilon.

Mr Hogg said he expected strong Epsilon sales next year after sales slowed during the first months of the coronavirus crisis.

GOLD COAST HOUSE PRICES TIPPED TO RISE AGAIN

“We have had a few sales throughout the last six months but are really confident there is actually going to be a kick in sales once people can travel a lot more,” he said.

“(COVID-19) only improved the desire for people in other areas to live on the Gold Coast and the demand has gone up and I do think that will be matched by sales soon once they can come visit.”

Sales in The Dorsett tower have reached almost 90 per cent. Picture: Supplied

Sales in The Dorsett tower, where one-bedroom units have sold for around $500,000 and two-bedroom apartments for about $900,000, have reached almost 90 per cent.

The second tower apartments were at similar prices.

“The reality is 2021 will be very strong,” he said.

“Everything is indicating there will be lots of interest … and therefore that would hopefully see a number of new developments be approved and commence construction.”

Mr Hogg said the domestic tourism market was well placed to boom next year once border restrictions were lifted for Sydney and Melbourne. That would in turn provide support for the real estate market.

“I do think in ’21, particularly in the winter months from April to September, the Gold Coast will do exceptionally well in the Australian domestic market,” he said.

Star Entertainment Group’s MD for Queensland Geoff Hogg.

“Lots of people from around Australia, but particularly Sydney and Melbourne, will come to the Gold Coast to spend their winter months with us and therefore domestically we will start to see a recovery.”

Mr Hogg said international tourism would take longer to return, predicting numbers to come back by 2024-25.

“By the time we move forward to potentially ’22 or ’23 at some point in that time we also think international borders will open up and it may take six to 12 months before that activity really starts to escalate,” Mr Hogg said.