Gold Coast development: Full list of failed ‘ghost towers’ which have not been built
The Gold Coast was meant to be home to more than 23 new high-rise towers by 2020, but none of them got built. We reveal why – and what is happening to them now. SEE THE FULL LIST
Property
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UP to two dozen developments that have sat idle in the inner city for at least five years are the golden key to unlocking the Gold Coast’s housing crisis.
They represent $8bn in projects and, most importantly, will open the door to 6000 units as cashed-up interstate investors defy the Covid pandemic and continue their pilgrimage north.
REVEALED: REAL REASON YOU CAN’T GET A COAST PROPERTY
Nearly 85 per cent of those projects never got off the ground after the Chinese market hit the skids, but are now back in play as heavy hitters begin to re-emerge in the hottest real estate market in more than 30 years.
The latest of those is Hong Kong billionaire Tony Fung, who returned to the property game this week in unveiling a twin-tower development in Surfers Paradise.
Property experts say developers have also learnt what investors are looking for and have moved away from the sardine-size apartments to offer luxury and lifestyle appeal.
$787M PROPERTY BOOM: A YEAR’S WORTH OF SALES IN THREE MONTHS
Property Council of Australia Gold Coast chairman Matthew Schneider said the property and development market had changed significantly with a shift away from high-density towers to low and medium-density projects largely centred on single-floor units.
“Reflecting on the rate of converting proposals to bricks and mortar underscores some important fundamentals of the Gold Coast,” Property Council of Australia Gold Coast chairman Matthew Schneider said.
“It proves that we remain an entrepreneurial and forward-thinking city that attracts ideas and investment. That is in our DNA and is one of our most compelling competitive advantages.
“It also demonstrates that, while some developers have the balance sheet to deliver big projects, we have seen the emergence of a much stronger capability in boutique scale projects. “That has been good news for the Gold Coast economy because there is less volatility in the delivery of a greater proportion of smaller projects.”
THE GREAT FALL OF CHINA
THE Chinese investor market was the Gold Coast’s cash cow in 2016, as some of the world’s richest men combined their billions with grand plans.
Aquis boss Mr Fung bought up two prominent Surfers Paradise development sites and the penthouse of the beachfront Soul tower. A tad north, ASF Group, fresh from having its Spit cruise ship terminal project dumped by the government, unveiled plans for a $1bn integrated resort and giant $500m gold tower in Southport, just a short distance from fellow Chinese-linked projects Grand Central and Star of the Sea.
Forise Group put forward its $1.2bn, 89-storey Spirit tower for the former Iluka site in Surfers Paradise on the promise of beginning construction immediately.
In late 2016, Wanda Ridong group was 18 months into the construction of its $1bn, three-tower Jewel project on Surfers Paradise beachfront.
It is the only success story of these projects, having been built, though it was sold to Yuhu Group which is still in the process of completing the interior of its final tower.
Mr Fung gained approval for a $440m hotel in Main Beach in 2017, only to put his sites up for sale a year later.
More than $20bn in development projects linked to Asian developers either stalled or were canned in five years.
So what went wrong?
The slowdown of the economy, the Chinese government’s crackdown on overseas investment, increased lending restrictions and the Royal Commission into Banking were blamed for many of those projects not going ahead.
Ambitious projects such as Spirit were shelved and others, including ASF’s controversial Wavebreak Island and Spit integrated resorts, were knocked back by the state government and council.
Finn Jones, a businessman and former architect, was head of the Urban Development Institute of Australia’s Gold Coast branch in 2016.
He said the significant influx of Chinese developers during the mid-2010s had largely resulted in land-banking, a situation in which sites were bought, gained development approval and then mothballed for more favourable market conditions.
“With these developers there was a tendency to hold on to the money rather than develop,” he said.
“If you look at the history of the Gold Coast there have always been more projects approved than actually built.
“This isn’t the Sydney market. There is always going to be an element of speculators in real estate.”
WHAT WENT WRONG
POOR sales and tiny units doomed many of the 2016 development wave’s giant towers to failure, a leading real estate agent figure says.
Gold Coast property industry leader John Newlands, a long-serving executive with the Real Estate Institute of Queensland (REIQ), lived the 2010s boom up-close and said he wasn’t surprised that many of the high-density towers put forward by Asia-linked developers failed to find buyers.
“The style of apartments were not suitable for people to actually live in,” he said.
“This was the time when developers were largely relying on pre-sales to get them the money to fund the buildings,” he said.
“But as a result of poor sales, many of them never went ahead, particularly because at the time you needed to sell about 70 per cent to make it stack up.
“They were being sold off to investors and the returns just weren’t there.”
Mr Newland said the Gold Coast’s property market had changed dramatically since 2018, with many developers repositioning their projects to focus on the highly lucrative downsizer market, with small towers featuring larger apartments.
“Back then we were relying heavily on the investors to buy into the towers, but in the past three years we have seen the market shift,” he said.
“They are a generation of building and they are targeted far more at the owner-occupier market and that’s why we are now seeing them get built in large numbers today.”
WAY OF THE FUTURE
THE post Covid-19 real estate boom has far surpassed the sales and construction activity.
The Gold Coast recorded an astonishing year’s worth of new apartment sales in the first three months of 2021, a new report by real estate firm Colliers revealed this week.
Lockdown-weary Sydney and Melbourne residents and downsizers are behind the record-breaking sales, as developers fast-track projects to the market to capitalise on the boom.
Data released in March by consulting firm Urbis revealed a lack of available units because the number of apartments built between 2018 and 2020 dropped.
In 2020, 22 new projects launched, containing a total of 1411 apartments. In 2019, 24 projects were built with 2164 units.
The median house price on the Gold Coast has jumped from $590,987 in 2016 to $749,950; and units from $321,364 to $479,400.
The housing crunch has also seen rental vacancy rates suffer, dropping to 0.6 per cent, as dozens vie for available accommodation at every listing.
The renewed development activity is focused on the future route of the light rail between Broadbeach and the border, particularly Burleigh and Palm Beach.
The influx is bringing significant challenges, however, as the city’s population races toward 1 million. Those challenges include density, transport and recognising the character of suburbs.
Mr Schneider said the Gold Coast market had emerged from its 2018-20 lull stronger than it was during its 2016 boom, but warned it was critical for political leaders to support policies that allowed for better developments.
“Our economy has matured over the last five years and has served well in flattening the peaks and troughs of market cycles,” he said.
“We must ensure the policy and regulatory settings continue to support this trend towards medium-scale development along our infrastructure corridors.
“Finally, it illustrates that the projects with the best prospects of coming out of the ground are well positioned, distinctive and highly responsive to the demands of buyers and the needs of the city.”
REARVIEW MIRROR OF COAST’S 2020 VISION
IN 2016, the Gold Coast Bulletin provided a snapshot of what the inner-city skyline would like in 2020, with 28 projects in the pipeline. Two years later the property market dipped and many of those projects never got off the ground. Today, in a hot real estate climate, the Bulletin revisits those sites to see the fate of those projects and the key players who own them now.
SOUTHPORT
The Mariner – Scrapped
(Sunland Group)
The controversial $600m, 44-storey twin tower project planned for The Spit was dumped by Sunland in late 2016. The site was sold to developer Ridong, which plans to build a shopping centre.
The AU – Stalled
(ASF)
A project worth more than $500m proposed for Scarborough St, Southport. ASF still owns the site and says it is committed to building on the Gold Coast, but has made no move to begin construction in the past five years.
Cienna Towers – Stalled
(Cienna)
A spectacular two-tower project which, if realised at the time, would have been the city’s second-tallest building at 88 storeys. The smaller high-rise was 38 storeys. However, the site remains empty.
Star of the Sea – Stalled
(Garuda GC)
A long-proposed, multitower project for Marine Pde, Southport, in which little was ever made certain. Land was cleared in late 2016 ahead, but it remains empty today. Hong Kong-based Garuda is still the owner.
Grand Central - Scrapped
(Southport Central)
A 47-storey Scarborough St development targeted at the student accommodation market. The project failed in 2017. The site remains empty and was sold in July 2021 in a receivers sale.
SURFERS PARADISE
Sci-Fi tower – Replaced
(Winten Property Group)
A $100m silver, 47-storey hotel and residential project planned for Main Beach between Woodroffe and Peak avenues. It was approved by council but scrapped by Winten in 2018 in favour of The Belvedere, a 22-storey luxury unit tower which is yet to begin construction.
Northpoint – Scrapped
(Banyan Tree)
A $500m, two-tower project of 41 and 35 storeys planned for The Esplanade at the northern tip of Surfers Paradise. It was approved by council in 2016 but never progressed. The site was bought this year for $75m by Harry Triguboff’s Meriton. “High-rise” Harry is planning a new tower.
Unnamed Tower – Scrapped
(Acazia Trust)
A 46-storey tower proposed for Budds Beach between Acacia and Oak avenues. US-based owner Laura Gnibus repeatedly failed to sell the site. It was scheduled to be auctioned in July.
Ruby – Partially completed/scrapped
(Ralan Group)
A $1bn, four-tower residential project on the Paradise Resort site. Tower one was completed and opened before Ralan Group collapsed in 2019. No new development is planned for the site which is now owned by Dr Jerry Schwartz.
Sapphire – Scrapped
(Ralan Group)
A $1bn, two-tower development planned as a mixed-use residential and retail project with towers of 71 and 33 storeys. It was scrapped in 2019 when Ralan Group collapsed. The site was recently bought by rich-lister Tim Gurner who is planning a $600m tower project.
Hamilton – Stalled
(Touchstone)
A $100m, 43-level tower proposed for a Ferny Ave site between Cypress and Palm avenues by Singapore developer Touchstone. The project never proceeded. The site remains owned by Touchstone’s Ruifeng Mu, who bought it in December 2014 for $1.4m.
Aus Mod tower — Under construction
(Aus Mod)
A 40-storey, multi-wing tower on Stanhill Drive put forward by Aus Mod. The site was bought in late 2017 by Benson Property Group, which turned the site into a 41-storey Chevron One tower.
Chevron Towers – Under construction
(Baron and Tony Li)
A 22-storey, 113-unit building proposed by developers Baron and Tony Li for the corner of Stanhill Drive and Parnoo St. It never got off the ground. However, they joined with fellow developer Marquee Development Partners to build Catalina, a $45m tower. It is almost finished.
Orchid 21 - Scrapped
(Grand Orchid 21)
A 27-storey tower with a rooftop bar in the heart of Surfers Paradise was earmarked for a site on Orchid Ave. A mortgagee took possession of the land in 2017 and put it on the market. It remains undeveloped and with the mortgagee.
Centra Tower - Scrapped
(Centra Surfers)
A 64-storey Surfers Paradise tower approved for the corner of Orchid and Cavill avenues in 2016. Longtime owner Henry Yuen put it on the market in late 2017, but it did not sell. In early 2021 Centra lodged plans to redevelop the site to become an up-market shopping centre and dining area.
Spirit - Scrapped
(Forise)
Earmarked to be the city’s tallest tower at the time, early works for the $1.1bn, 89-storey project were completed. Soon after the project was abandoned and Forise pulled out of the Australian market. The site is now owned by Macau casino magnate Keong Kuong Loi.
Thornton tower – Stalled
(Peninsula Properties Qld)
A 91-unit, 31-storey tower planned for a “pocket park” sold by city hall to Broadbeach resident Gregory Alexander Craig to fund the cultural precinct. The development was approved by the council in late 2016, but nothing happened.
Markwell - Stalled
(Citimark)
A $197m, 46-storey unit building planned for the corner of Markwell Ave and Surfers Paradise Blvd. Citimark still owns the site but shelved the project in 2019 to wait for the property market to bounce back.
Anembo - Scrapped
(Harry Habul)
Proposed 31-level, 238-unit tower on a 3670sq m block on the corner of Anembo St and Stanhill Drive. In July 2021 it was revealed the site would be bought by Infinite Health Care to build a seven-level nursing home.
Unnamed tower – Scrapped
(Dennis Family Corporation)
A 22-level tower with 105 units earmarked for Mawarra St by developer Bert Denis. The project was shelved in August 2021 and the site opened to expressions of interest.
Bliss - Scrapped
(HWI Saltwater)
A 30-storey, 228-unit tower approved by council in 2015 for the corner of Thomas Drive and Darrambal St. Parcels of the site were sold off in 2020.
Citimark - Scrapped
(Citimark)
A 24-storey tower planned for the corner of Mawarra St and Thomas Drive. Citimark gained approval for the project, but put the site on the market in late 2020.
St Thomas place - Scrapped
(Tony Hickey)
A 15-storey, 60-unit boutique unit building approved in 2012. The site was bought by Chinese company CAP Chevron from lawyer Tony Hickey and announced in late 2020 it would build Isola, a 19-level tower. Work is yet to begin.
BROADBEACH
Pacific One - Revived
(Central Equity)
Proposed by a major Melbourne developer, this Garfield Tce project was to be 26 storeys and 175 units. Scrapped in 2018, it was revived in mid-2021 and will now be 56 storeys.
Jewel – Completed
(Yuhu Group)
A $1bn, three-tower project of more than 500 units. It was expected to be completed in 2019 but as of 2021 only a small number of people had actually moved in.
Rosewood – Stalled
(Rosewood Broadbeach Pty Ltd)
Earmarked to replace a decaying eyesore, the approved Rosewood tower is 41 storeys and features 144 apartments and 40 serviced apartments. Still owned by Rosewood Broadbeach, it is still anticipated to be built but work has not begun.
Albert Ave – Revived
(Niecon Plaza Pty/Rockdune Pty Ltd)
A proposed mixed-use development featuring two towers of between 35 and 28 storeys on the Niecon Plaza site. Sydney group Iris Capital bought the site in mid-2020 and is planning a $700m development.
The Star – Completed/Under Construction
(Star Entertainment Group)
A multibillion-dollar project. The Darling, the first of up to five new towers, was completed in 2018. Work on two new super towers is underway, with plans for more.
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