Construction boom: Every tower development planned for Kirra, Rainbow Bay and Coolangatta
THE biggest development in the southern Gold Coast’s history has been redesigned and fast-tracked in a bid to cope with “dynamic” property market conditions.
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THE “sleeping giant” Coolangatta has been woken, with more than $1bn worth of projects rising from the ground.
The once-sleepy border suburb, which takes in Kirra and Rainbow Bay, has become one of the biggest development hubs across the city, with 13 luxury projects under construction or selling, with many more on the way for the sites surrounding some of the world’s most famous surf breaks.
Big name developers, including Sahba Abedian and Melbourne-based rich lister Max Beck have projects waiting in the wings while prolific Gold Coast builders Paul Gedoun and Spyre Group already have towers coming online.
Real estate and development figures believe the amount of development will intensify in the next five years as plans to bring the light rail to Coolangatta solidify.
Leading Gold Coast real estate agent Dane Atherton, of Harcourts Coastal, said Coolangatta was on the precipice of becoming a major residential and lifestyle precinct similar to Main Beach in the 1990s and Broadbeach in the 2000s and Burleigh during the 2010s.
“This is an area which has just been waiting for developers to build there and now it is paying off because we are seeing a significant variety of apartments being built, from entry level through to the luxury end,” he said.
“It shows developers and buyers are both backing it and people are investing in the transformation, so I think it’s only a matter of time until Griffith Street really comes to life as a natural consequence of the population growth down there.
“It reminds me of Main Beach and Tedder Ave 30 years ago – what we are witnessing is a sleeping giant waking up”.
The number of real estate inquiries in the area has increased to the point that Mr Atherton’s firm is opening a new southern Gold Coast office at Palm Beach to cater to the demand.
SUBURB-BY-SUBURB GOLD COAST DEVELOPMENT SERIES
A Bulletin investigation earlier this year found nearly 120 tower projects are either under construction, approved, on the market or before city leaders awaiting a green light.
Of these, about half were filed with the council in the 2021-22 financial year.
While much of the attention has been focused on Surfers Paradise, Palm Beach, Broadbeach Burleigh, Chevron Island and Main Beach, Coolangatta sites have been snapped up by a range of developers who have fast-tracked construction on the back of the Covid-supercharged real estate market.
Despite a cooling real estate market and dramatically increasing material costs, applications to build tower projects continue to flood into the council weekly.
Mr Gedoun’s S & S Projects has three towers under construction while others are before council.
Mr Beck’s BeckDev – which was behind a landmark Melbourne CBD mall retaining a stunning historic brick interior structure – has filed plans with council to redevelop the historic Jazzland Dance Palais site on McLean Street to create a $130m, 22-storey tower.
Mr Abedian, bought the Greenmount Beach Resort site in early 2021 from Sunland, the development company he is also managing director of, and has already secured approval from the council to subdivide the resort into three lots.
“It is early days but we intend to lodge our first development application (for the first subdivision of the Greenmount resort site) by the end of the year,” he said this week.
“(Applications for) subsequent sites will be lodged next year.”
Last year was a high water mark for Gold Coast property, with nearly 2500 units sold.
This was well-above the previous average of about 1100 sales annually, and the previous record of 1600 transactions in 2015.
The slowest year in the past decade was 2017, when 800 units changed hands.
The future of the City Plan, which effectively controls all development across the city, remains in limbo, with the state government and Gold Coast City Council at loggerheads over new measures.
While the state government this week ticked off two-thirds of proposed amendments, the future of development around the future light rail route is yet to be decided.
Tower development along the Gold Coast Highway has increased on the back of plans to extend the light rail from Broadbeach to Burleigh.
Many more are expected in the next decade, although high-rises in Nobby Beach have been ruled out.
Stage 4 of the tram system is expected to run from Burleigh Heads to Coolangatta via Gold Coast Airport.
It is yet to be funded but it is intended to be built by 2032 for the Olympic Games.
With developers already snapping up sites along its expected future route on the Gold Coast Highway, Real Estate Institute of Queensland (REIQ) Gold Coast zone chairman Andrew Henderson said there was no end in sight for Coolangatta’s transformation.
“It is an area that was quite sleepy over the decades so what we are seeing is a bit of a domino effect – You get one project of high quality that sells well and then people see the opportunity because the demand is there,” he said.
“Infrastructure of the light rail’s magnitude will benefit property owners in the area with price growth, whether they used the trams personally or not, but it will open up Coolangatta to the rest of the Gold Coast.
“This sleepy part of the Gold Coast is now becoming a prominent part of the conversation as much as Broadbeach and Surfers Paradise and we cannot keep it locked away for a select few – it needs to belong to the majority who can enjoy its view.”
KIRRA MEGA PROJECT FAST-TRACKED
THE biggest development in the southern Gold Coast’s history has been redesigned and fast-tracked in a bid to cope with “dynamic” property market conditions.
Construction on the $380m four-tower Kirra Point project on the old Kirra Beach Hotel site, will ramp up in coming months as its developer KTQ Group moves to build the precinct in two stages rather than one.
The move, first earmarked earlier this year, will mean the precinct will be completed in 2026, three years ahead of schedule.
With its first stage, the 188-unit Miles Residences, under construction KTQ group director Peggy Flannery said the second and now final stage of Kirra Point will deliver 88 apartments, a 92-room five-star hotel and the expanded retail and dining precinct.
“We have enhanced our plans for Kirra Point, but the philosophy behind our development hasn’t changed,” she said.
“Kirra Point has always focused on providing local needs first and the feedback we have received for this development has been exceptional and prompted us to modify our original proposal.”
The project’s first stage, which will feature the new Kirra Beach Hotel, a second bar and event space, is expected to be completed in September 2023.
KTQ developments director, Jeremy Holmes, said the revamped plans would allow for a greater mix of tenants than the original proposal.
He said the decision to fast-track and modify the second stage of the project was “driven by dynamic market conditions that have seen buyers and retailers respond positively to the transformational development”.
“We are cognisant of the changes in the marketplace, and we see advantages in delivering the project earlier than anticipated when some projects are not proceeding due to rising construction costs,” he said.
“The new retail and commercial spaces are designed to accommodate a diverse mix of offerings and services. We’ll be working with each tenant, allowing them to customise their spaces and make them their own.
“Kirra Point will be constantly evolving, and never static, with room for individual quirks, activations and collaborations with tenants.”
The Kirra Beach Hotel was closed in February 2021 after 65 years.
Figures lodged with council in early 2021 showed more than 1200 direct and indirect jobs will be created full-time, and more than 840 construction jobs by the project.
Once complete, it is expected to put $61.4m annually into the Coast economy.
GIANT RAINBOW BAY SITE HITS MARKET
THE largest development site in Rainbow Bay’s history is on the market.
The 1740sq m site on Hill Street, which falls within Tweed Shire Council’s sphere of influence, is already approved for a seven-storey luxury tower but its new owner will have the chance to apply for something even larger.
It is an amalgamation of four separate site, with existing houses to be demolished to make way for the new tower.
The site is being marketing by the CBRE Gold Coast team, led by managing director Mark Witheriff.
“The four properties represent the largest development site on the hill ever offered to the market,” he said.
“The site has favourable zoning allowing for a 49.5m height limit and comes with the added bonus of having a live development application currently with Tweed Shire Council.”
The tower pitched to Tweed Shire Council features 18 luxury units.
An expression of interest campaign on the site closes at 4pm on November 10.
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