Ann Wason Moore: Gold Coast’s greedy landlords sending Surfers Paradise belly up

It’s a fool’s paradise, writes Ann Wason Moore: the greedy landlords of the Gold Coast have become the architects of their own demise as entire suburbs go belly up.

TALK about a fool’s paradise.

Greedy landlords on the Gold Coast have become the architects of their own demise, sending not just businesses belly up but entire suburbs.

I applaud Surfers Paradise MP John-Paul Langbroek for calling on landlords to “bite the bullet” and ease rent demands to help struggling retailers and venues on the Glitter Strip.

And I agree with Mayor Tom Tate’s sentiments earlier this week that when it comes to Surfers Paradise, there is only so much that the council – or any politician – can do.

While it is useful to debate what can be done to add some sparkle to the dulled jewel in our tourism crown, it is businesses and investors who will ultimately bring the locals back.

Funky shops, trendy cafes, rave-reviewed restaurants … that sounds like a recipe for Paradise.

But right now, Surfers sounds like hell for the owners of such operations.

All quiet in the Streets of Surfers Paradise. Picture Glenn Hampson

“Landlords have to bite the bullet in terms of rent expectations during the worst economic conditions for (almost) a century, since the Depression,” said Mr Langbroek.

“That’s the only way you will get people to want to open a business in some of the more rundown tenancies.

“They will invest if they have some hope they won’t be gouged by landlords.”

And the sad truth is, this isn’t the first suburb greedy landlords have spoiled.

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First it was Surfers, then came Main Beach and now the rot is setting in around Broadbeach.

Suburbs become victim to their own popularity as property owners with an eye only on their (short term) bottom line, raise rents through the roof until they are left with nothing but vacant, derelict money pits.

Nothing undervalues a retail or tourist strip like empty shops – it’s like a model with no teeth … out of work.

And why don’t these landlords – apparently savvy business people – realise that the longer they hold out for top dollar, the less attractive their suburb becomes and the less their property is worth?

No matter what a landlord thinks their property is worth, it is only truly worth what someone is willing to pay.

LNP MP for Surfers Paradise John-Paul Langbroek. Photo Scott Powick Newscorp

And in this time of economic distress called COVID, people simply aren’t willing – or able – to pay much.

Surely it is better to reduce rents than receive no rent. A percentage less of profit each week is a hell of a lot more than a big fat zero.

Look at Tedder Avenue. Once it was the centre of social life in this city, the hub of uber-cool cafes and bars, the scene to be seen in.

As demand increased, landlords raised the price and then continued to raise it higher and higher until eateries were forced to close their doors or relocate.

Instead of reacting to the market as any high school economics teacher would advocate, prices remained high and shops remained empty.

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The people left and Main Beach is still trying to woo them back.

The light rail helped, but not enough. As any Instagram influencer knows, reputation is everything.

And now it is happening at Broadbeach. Rents have gone up, demand has gone down, cafes are closing and the streets are empty.

Of course, poor Broadie isn’t helped by the fact that Pacific Fair now hosts its own row of restaurants.

Where once shoppers would wander over to Surf Parade for a post-retail therapy dinner or pre-movies meal, now the centre is a one-stop shop. The light rail has benefited Pacific Fair enormously but there is no longer enough on the beachside to draw the shoppers over the highway in bulk.

Surfers Paradise is struggling.

Sure there are still some great restaurants, but there is not the line-up of packed eateries there once was.

Meanwhile, restaurateurs have turned to new locations in search of more affordable rents – and it’s paying off for businesses and locals alike.

In Mermaid alone, the cafe society is spreading into the suburbs as owners find more affordable locations west of the Gold Coast Highway. Witness the dining culture developing at Mermaid Waters Shopping Centre on Markeri or the likes of Double Barrel Cafe in Waterways Village on Sunshine Blvd.

Cheaper rent brings business which brings people.

Let Surfers Paradise set the trend once again by encouraging landlords to lower prices and meet the market.

The people want to come, there’s just nowhere to go.

But it is not too late to turn this around. If we’re smart about it, we can bring back Paradise.