Gold Coast light rail: First look at Burleigh Heads towers on Gold Coast Highway
One of the Gold Coast's most prolific developers has unveiled plans for a new tower as others, desperate to capitalise on a light rail-generated property boom are turning their attention to the city's southern suburbs. SEE THE PLANS
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Developers desperate to capitalise on a light rail-generated property boom have turned their attention to the Gold Coast’s southern suburbs and Tweed in a bid to get a foothold in the market.
New data reveals that commercial and residential property continue to be bought up at a rapid pace despite an imminent interest rates rise and the collapse of several prominent southeast Queensland builders.
Nearly $20m in commercial property has sold in Coolangatta’s Griffith St alone this financial year while leading real estate agent Adam Grbcic said a “glut” of projects between Broadbeach and Palm Beach had forced developers to look further south.
The Kollosche Commercial sales specialist said the proposed light rail extension to the airport was a significant motivator for developers to secure property before prices start to rise.
“We think this is a natural shift because of the many advantages these areas hold for developers,” he said.
“They include the upcoming Stage 4 of the Gold Coast Light Rail route linking Burleigh Heads to Coolangatta via the Gold Coast Airport, significantly larger lot sizes, and the unique ocean aspect these areas offer with Coolangatta a special case in point with its northerly aspect.
“In addition, more leading retail operators are choosing to set up shop in these suburbs, adding further amenity to development projects.”
Among the most significant sales in the past six months have been a development site on Lalina Ave, Tweed Heads West for $3.2m, the Greenmount Hotel in Coolangatta for $42.3m, and another development site on McLean Street, Coolangatta for $3.2.
Shock new state government data released in April showed land values on the light rail route in Palm Beach shot up by 75 per cent in just two years, with property owners now facing “unprecedented” rates and tax bill increases.
The city’s average land price increased 37.1 per cent from $350,000 to $480,000. There are 17 suburbs with land values that have jumped by 50 per cent or more since the previous valuations just two years ago, with the bulk on, or near, the future light rail route.
Construction has begun on the $1.2bn Stage 3 route between Broadbeach and Burleigh while planning continues on Stage 4, which will run from Burleigh Heads to the border via Gold Coast Airport.
Several major developments have been proposed or begun construction in Coolangatta this financial year, while its shopfronts are selling in larger numbers. James Crawford, Colliers’ director of investment services, said commercial sales in Coolangatta had been rising rapidly.
“Coolangatta businesses arguably were the hardest hit on the Gold Coast due to the hard border, yet that hasn’t deterred investors looking to position themselves beyond the pandemic,” he said
“With residential properties in hot demand in Kirra and Coolangatta, we’ve seen that flow through to prime commercial assets right along the key shopping precinct of Griffith Street.”
“These transactions represent an undeniable vote of confidence in the future of Coolangatta’s retail heart. It also demonstrates the resilience of the Gold Coast commercial property market which can only strengthen further now that international borders are open.”
FIRST LOOK AT BURLEIGH TOWER
A pair of ageing unit buildings on the future light rail route will be demolished to make way for a new high-rise from one of the Gold Coast’s best-known developers.
Morris Property Group has unveiled plans for a 25-storey tower on the Gold Coast Highway at Burleigh Heads.
Company director Barry Morris acquired the 2024sq m site last year through Antonio Mercuri’s GV Property Group.
Mr Morris said Burleigh Heads had untapped potential, with the tower his fifth project in the suburb.
“We saw a great opportunity for this site as it’s ideally positioned to offer direct access to popular destinations including James Street and Goodwin Terrace,” he said.
“We’ve noticed in-market buyers are drawn to the relaxed lifestyle of Burleigh Heads while seeking high quality and functional apartments.”
Morris Property Group is currently building a tower in Burleigh – Sandbar, as well as the Mermaid Plaza shopping centre on the Gold Coast Highway.
‘Just like Bangkok’: Anger over planned transformation of suburbs
Residents of suburbs surrounding the Gold Coast light rail’s future route between Burleigh Heads and the border have reacted strongly to plans to build more towers on the Coastal stretch.
The Bulletin this week revealed the state government has refused to sign off on the City Plan amendments because it favours higher-density development along the tram route.
But Bulletin readers have had a mixed reaction, ranging from acceptance to fury.
Reader Matthew wrote: “The light rail is here to stay and the benefits won’t be fully realised until it runs all the way to the airport”.
“It totally makes sense to maximise the population density along it’s route to ensure that the LR has the best chance of being fully utilised,” he wrote.
“We need people to change the way they commute and embrace public transport in all forms. It also needs to be affordable, reliable and efficient before people will completely embrace it.”
Less in favour was Dennis who wrote: “It will look like Bangkok in 20 year can’t wait are we trying to build a liveable city or not?”
‘Go bigger’: Why even larger towers are needed for light rail
The State Government has rejected changes to Gold Coast council’s City Plan because of an unwillingness to lower densities around light rail, it can be revealed.
An email from a senior government planner to a council manager, seen by the Bulletin, explains why the Government has not ticked off on amendments to the plan after years of community consultation.
With the future of the plan that effectively controls all development across the city now in limbo, community groups fear developers are lobbying the Government to water down specific amendments, reducing building heights and stopping super towers on the tram line.
Main Beach Association leader Sue Donovan told the Bulletin: “The amendments, which were submitted to the State Government before Christmas, appear to have hit a log jam.
“Clearly developers fear that their profit margins will be adversely impacted if some quite minor improvements are made to setbacks, building heights and so on.
“You can be quite sure that a massive lobbying effort is currently underway to persuade the Government to force the council to water down their proposed reforms to the City Plan. Developers have a lot at stake and are extremely well resourced.”
The email from the Government planner to council asked for more information on:
* Low-medium density residential zoning changes for the future light rail corridor.
* Urban design policy changes and light rail urban renewal area overlay code changes
* Targeted Growth Areas policy changes which impacts on suburbs wanting less growth
* Alternative plans for some suburbs and the extent of impact of those changes.
The Urban Institute of Australia Gold Coast branch told members it wants council “to achieve a balance of maintaining and improving viable dwelling supply and design improvements”.
UDIA Queensland CEO Kirsty Chessher-Brown said the Coast was already facing a severe shortfall in the necessary number of dwellings to house the city’s rapidly expanding population.
She warned against limiting development on the light rail route, arguing that it had always been accepted that it was good planning practice to have people living around public transport corridors.
“It provides an opportunity to move people around cities and regions to their places of work and we would like to see an integrated approach to this planning,’ she said.
“One thing we need to make sure when considering any changes to the planning scheme is the market realities of those changes and the impact on the ability to bring projects to the market.
“The reality is that if we do not deliver on these dwellings, the targets become bigger each year and, for homebuyers, the supply will become scarcer.”
Ms Donovan said the MBA has written to Planning Minister Steven Miles expressing the community’s concern about the delay and pressure from the development industry.
“Maybe it is time for stronger action by the Gold Coast community as a whole,” she said.
Construction of the light rail’s stage 3 between Broadbeach and Burleigh Heads will begin within weeks after years of delays and cost blowouts.
While there has been a dramatic uptick in development surround the route, controversy has dogged several key projects.
A cashed-up plan to put two luxury medium-rise towers in central Nobby Beach next to the area’s planned light rail station ended up council unequivocally declaring it would never approve the towers.
Other developers, including Morris Property Group, area already pressing away with new towers and shopping centres along the Mermaid Beach and Burleigh lengths of the route.
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