Gold Coast housing crisis: Developers say targets 'not realistic'

A leading developer has warned state-set housing targets for the Gold Coast are not realistic and steps must be taken to increase supply. FIND OUT MORE

A leading developer has warned state-set housing targets are not realistic and steps must be taken to increase supply.

A report released in June by the Property Council of Australia and consulting firm Urbis, warned the Gold Coast is falling further and further behind state-set housing targets.

Property Council state executive director Jess Caire said there was “significant doubt over the Gold Coast’s ability to meet the housing targets set out by the Southeast Queensland Regional Plan (SEQRP).

“Under the SEQRP the Gold Coast is expected to deliver around 5643 attached dwellings annually from 2021 to 2031, and 5924 annually from 2031 to 2046 (but) less than a third of this target has been achieved each year since 2019,” she wrote.

But developers say more must be done.

Adam Beck and Matt Hills. Picture, Portia Large.

Lewis Land senior development manager Matt Hills said the Gold Coast was “in a unique situation”.

“Demand for new homes remains exceptionally strong, but the sector is facing significant headwinds that need urgent attention to even get close to meeting housing targets,” he said.

“To unlock supply, state and local governments need to work together and be open-minded to work with developers on solutions to address the housing crisis.

“That can mean streamlining planning and rezoning processes for projects that are development-ready and able to deliver homes, and supporting housing diversity — not just high-rise towers, but also low and mid-rise formats that can be delivered by a broader range of builders and suit a wider range of residents.”

Mr Hills, whose company is developing the Harbour Shores development at Biggera Waters, said it was critical for more housing to be delivered.

Harbour Shores

“On the Gold Coast, delivering 50 towers a year just isn’t feasible with the current builder and trades capacity,” he said.

“We need to recognise the value of diverse, lower-density projects that can steadily add to supply while other large-scale, high-rise construction is underway.

“At Lewis Land, our Harbour Shores project, and surrounding land holdings is a good example of this approach.

“We’re focused on delivering walkable residential communities close to amenity and jobs with a mix of housing types – 1, 2 and 3-bedroom apartments, and 3 and 4-bedroom villas – supported by extensive parklands and community amenities.

“Our goal is to create a vibrant, sustainable community that meets the needs of a broad demographic while helping to address the region’s housing shortfall.”

A new City Plan still at least two years away, developers and city leaders including Mayor Tom Tate say other measures must be taken soon to unlock housing.

The Bulletin on Thursday revealed a group of developers and landowners were lobbying to be allowed to build larger towers on the Mermaid Beach and Miami stretch of the light rail.

With the Gold Coast falling behind on its housing targets, they argue political leaders are “using traffic, carpark and infrastructure challenges as an excuse to stymie development”, and warn the Gold Coast will “become more unaffordable than Sydney within a decade unless they change policy.”

While building has slowed, their trust in the sector has also been hurt, with numerous developers invoking “sunset clauses”, terminating contracts and offering units again at a higher price.

They argue that previous prices made their projects unfeasible.

Main Beach developer Jon Drew Picture Glenn Hampson

Jon Drew, head of Main Beach-based Drew Group, said rising costs had impacted on the industry and its ability to deliver.

The company is building its two-tower Lagoon project in the heart of Main Beach, while others have faced difficulties.

However he said taking a stand against the use of sunset clauses in current projects would restore faith in the sector.

“Offering price certainty to new buyers has been an important driver of sales inquiries at Lagoon since we made that announcement to the market last year,” he said.

“The entire industry has felt the widespread impact and pressure of rising costs and we are no exception.

“Despite these pressures, Drew Group has always believed in its obligation to maintain the value of properties for buyers who put their faith in us and we firmly believe in honouring our commitments to buyers, just as they honour theirs.”

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Originally published as Gold Coast housing crisis: Developers say targets 'not realistic'