New high-end Surfers Paradise backpacker resorts to cater to ‘homeless and workers’
Workers who can no longer afford to live on the Gold Coast are a key target audience for two new affordable accommodation resorts on some of the city’s most expensive land. Here’s what’s planned.
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Backpackers and workers priced out of the Gold Coast property market are the targets of two new accommodation complexes planned for some of the city’s most expensive land.
One is already underway, with the Gold Coast City Council having green-lit Bounce, a seven-storey building in swanky Budds Beach aimed at housing backpackers and also the homeless.
Site clearing has begun for Bounce, with its application to council saying it will “flexibly cater for backpackers, hospitality workers, tourists, locals, the homeless and other people in need of accommodation”.
The Pine Ave complex will have 449 beds across 102 bedrooms, as well as co-working spaces, communal and terrace dining and a TV lounge.
It will replace three existing buildings, including an older backpackers.
Meanwhile, plans have also been lodged but not yet approved for Noon, a six-storey, 429-bed project on Surf Parade near the glittering Jewel towers and five-star Langham Gold Coast hotel.
Noon’s application, for 91 bedrooms, says it aims to bring “high-quality” backpacking accommodation to the Glitter Strip.
“This contemporary accommodation typology differs from a typical backpacker accommodation of old and more recently has been a means of flexibly catering for backpackers, hospitality workers, tourists, locals and the like, offering a valued addition to the tourism accommodation typology,” a report lodged with council reads.
The projects, at opposite sides of Surfers Paradise, sit on some of the Gold Coast’s most desirable coastal real estate.
Area councillor Darren Taylor said the twin projects, from separate developers, were a symptom of the tough financial times and it was “just part of being a growing city”.
“It’s cheaper and with cost-of-living increasing so much, these kinds of accommodation are available for those who do not have the money and means to live in a unit near the coastline,” he said.
“It also helps with industry, including cafes, clubs and tourism to provide accommodation for those people who work in those businesses.
“As we grow and become a more diverse city, it allows us to offer different types of accommodation for the community as well as those who are finding it tough. Businesses really rely on this stuff because they need to have people who live in the area to work for them.
“There are some really creative designs.”
The Budds Beach project has been put forward by Bounce Surfers Paradise Trust, a company linked to directors Warwick Fordhamn, Gerardo Incollingo and Mark Baldwin.
Bounce operates several other hostels across the state.
Noon has been put forward by Helensvale-based entity GPF Pty Ltd.
Property Council of Australia research in 2024 underlined fears from industry leaders that the city’s market, beset by a lagging building sector and a lack of available land, was becoming unaffordable to the average worker.
Property Council state boss Jess Caire said buyers faced a difficult future.
“For a full-time nurse and ambulance officer on a combined income of $149,358, the Gold Coast’s median house price would absorb more than 50 per cent of their household income, placing it well beyond their reach,” she said.
“The median unit price is also unaffordable, requiring more than 30 per cent of their household income.”
Noon’s application to council says of its Surf Parade site: “It is therefore ideally situated to provide tourist and travel accommodation within walking distance of Cavill Ave and within 100m of the Gold Coast’s beautiful beaches.
“The site is predominantly surrounded by tall multi-storey residential buildings with the Jewel development located just to the north.
“It is a prime site for a luxury highrise development and approval for such exists on the site.
“The developer has however revised plans to instead provide much needed affordable short-term accommodation. This will be in the form of a six-storey hostel development with on site parking and a broad mix of accommodation styles.
“The project will cater for young professional travellers, backpackers and locals in need of short-term accommodation.”
It comes just months after a report warned the Gold Coast was in dire need of more cheap accommodation.
The report by independent property company M3 in November showed there are 12 hostels in the city, with plans for only a few more.
The report notes the city is missing out on a small but important market which could pour more money into the economy.
“The budget traveller and working holiday tourism market is only a small part of the overall tourism market,” it says, but adds it’s important given the Australian government granted 224,431 Working Holiday Maker (WHM) Visas in the 2023 financial year.
The report adds Tourism Research Australia (TRA) showed there were 29,082 WHM travellers to Surfers Paradise alone in the 12 months to March 2024.
“Given that there are just 12 backpacker hostels and many reports suggesting that obtaining a bed at short notice in a backpacker’s hostel on the Gold Coast is either impossible or very expensive, there is a pronounced gap in the market considering the number of budget travellers and the total size of the Gold Coast tourism market.”
Of the 12 existing backpacker hostels, eight are in Surfers Paradise, two are in Southport, and one each at Coolangatta and Bilinga.
The largest, and oldest, is the six-level Bunk hostel in Surfers Paradise which began operating in 1999.
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Originally published as New high-end Surfers Paradise backpacker resorts to cater to ‘homeless and workers’
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