Gold Coast Property market: Builder reveals housing needs for population to grow by 2037

The boss of Australia’s largest building company has opened up on the challenges facing the industry as the developer behind $3bn plans for a 108-storey tower reveals his next step.

The boss of Australia’s largest building company says confidence is returning to the property sector but warns a “triple whammy” of high interest rates, building costs and inflation will make it difficult for developers to keep up with population growth.

More than 15,000 people a year are moving to the Gold Coast but construction has lagged behind, with many projects put on the backburner because of tough market conditions.

Hutchinsons chairman Scott Hutchinson will speak at an industry roundtable event at Royal Pines on Thursday where he warned the property sector faced significant challenges despite improving conditions.

Builder Scott Hutchinson. Picture Lachie Millard

“The big challenge now is how to we find enough tradespeople to deliver much needed projects to the market in such a high migration environment where housing demand has probably never been higher,” he will say in a speech.

“This is accentuated by the fact that there is so much competition for trades due to the extraordinary amount of public infrastructure spending by governments because of Queensland’s popularity, growth and the coming 2032 Olympics.”.

The 2023 Gold Coast Dwelling Supply Study, released in July, warned the state government’s updated dwelling supply estimates for the Gold Coast are “questionable”, with existing greenfield sites able to viably deliver 17,564 houses.

This is less than a third of the state’s target of 57,194.

Urbis director Paul Riga.

Urbis boss Paul Riga will use his speech to underline the sheer number of houses which need to be built in the next two decades.

“We are acutely aware of the growth trajectory that Southeast Queensland is on and there is certainly a dire need to make sure we get our growth plans right as we manage the exciting future prospects of the region,” he said.

“The Gold Coast is forecast to see an increase of around 150,000 residents between 2022 and 2037, requiring around 60,000 dwellings.” “To achieve this we will need to ensure opportunities for low and middle income housing with strong connectivity to public transport and core lifestyle amenity. In doing this we cannot lose sight of the importance of urban design and the increased sense of community this can bring.”

Azzura Group CEO Robert Badalotti. Picture: Supplied.

Others, including Azzura Group boss Robert Badalotti, the man hoping to build a 108-storey tower in the heart of Southport say the next decade will bring significant growth for the city and urged other developers to push forward with their own projects.

Mr Badalotti is currently building the first stage of his $3.1bn project and said he would move to the next tower once it was finished.

Artist impression of Monarch Place, stage 2 of the Imperial Square development which will be built in Southport on the Gold Coast by Azzura Group, headed by Robert Badalotti. Picture: Supplied.

“Having our own build team combined with the strong migration certainly gives us the confidence to begin the next stage,” he said,

“I am very bullish about the Gold Coast and in particular Southport as the city’s undisputed CBD. Migration will remain very strong over the next decade and people including retirees will continue to flock to the Gold Coast.”

The dwelling report, which analyses the state of the city’s development sector, warns the existing Southeast Queensland Regional Plan urban footprint should be dumped – a move which would allow land such as Norwell Valley in the northern Gold Coast to be unlocked for housing.