Gold Coast property: 50 new towers needed annually to match growing population

More than 50 new towers need to be built every single year for the next decade for the Gold Coast to meet state-set housing targets, and there’s a huge problem with that.

More than 50 new towers need to be built every single year for the next decade for the Gold Coast to meet state-set housing targets, a new report reveals.

The startling report adds to growing pressure on the new state government to urgently unlock more land for housing across the city.

Data compiled by property consulting firm Urbis show the average price of units continues to hit all-time highs, while the number actually being built continues to slow.

The Queensland Government’s ShapingSEQ Regional Plan calls for a further 38,800 high-rise apartments to meet population growth targets across the Gold Coast by 2031.

Senior Consultant Urbis, Lynda Campbell. Picture by Scott Fletcher

However, Urbis senior consultant Lynda Campbell said the Gold Coast was increasingly falling behind the targets

“At an average building scale of 90 -100 apartments, this is the equivalent of around 430 new apartment buildings in the Gold Coast by 2032,” she said.

To build 430 new towers by 2032 requires more than 50 to go up annually.

“The recent slowing of new project launches will hinder the Coast’s ability to hit these targets. “In 2023, for example, 16 new mid and high-rise apartment towers were launched, containing 1800 apartments.

“During 2024, to date, there have been only 11, containing around 800 apartments.”

It’s a far cry from the market’s peak in 2021 and 2022 when more than 6000 units were launched.

The Gold Coast needs many more towers Picture: Nigel Hallett

A report on the city’s housing supply released in 2023 revealed there are around 40,000 units approved for the city but are unlikely to ever be built.

Ms Campbell said: “The slow down in launches and projects moving to construction is placing significant pressure on current stock and resulting in increasing prices.”

The Urbis data revealed:

* A 10-year high in the average new apartment sale price which was recorded during the June quarter, was topped in the September quarter – rising from $1.775m to $1.895m;

* The average new apartment sale prices has increased by 765,000 in the past year;

* The number of new apartments on sale has fallen to its lowest levels in more than two years, with the number of new units being sold dropping 45 per cent in the past three months;

* 90 per cent of all sales were $1m or above, with none recorded below $750,000 in the September quarter.

Mayor Tom Tate (Photo by Chris Hyde/Getty Images for Football Australia)

Mayor Tom Tate is warning the situation is dire and wants the state government to consider intervening and introducing a series of Temporary Local Planning Instruments (TLPI) up and down the light rail to unlock high-density developments along the route.

The last TLPI was the controversial and now-repealed Arundel Country Club project but Mr Tate said there was a strong and critical need.

“It would be hypocritical if the federal or state governments don’t remove green tape (holding developments back) because everyone is talking about affordable housing,” he said.

Housing Minister Sam O’Connor last week reaffirmed the LNP government’s election commitment to deliver more than one million new homes across the state within 20 years.

“To build the homes Queenslanders need sooner, our government is prioritising collaboration with local governments to streamline development approvals and accelerate housing infrastructure projects,” he said.

“We’re unlocking a $2bn Housing Infrastructure Investment Fund to support councils, including the City of Gold Coast, with the essential infrastructure – like roads, drainage, and parks – needed to open up more dwellings for development.”