‘Exponential price growth’: Why Rainbow Bay property is selling for millions
Gold Coast developers report strong sales in a suburb where property values doubled in less than five years, with units bought off-the-plan now selling for almost twice their original price.
Developers are reporting strong sales of their Rainbow Bay towers, with new units which sold less than five years ago doubling in value.
The Gold Coast’s southernmost precinct has been a hub of development in the post-Covid era, with hundreds of millions of dollars worth of projects rising.
But with little available stock and demand high, buyers are willing to pay almost double to snap up a piece of the north-facing surf break lifestyle.
Leading real estate agent Michael Kollosche said Coolangatta and Rainbow Bay were among the most tightly held markets in the entire city.
“We are seeing a lot of people who are moving down there because Burleigh has become so congested and busy and those who were in that Burleigh Pocket are looking to go down south where it is quieter,” he said.
“We are also seeing a lot of families out of Brisbane who have had a long love affair with that part of the Gold Coast and always holiday there now wanting to buy property there and hold onto it.
“The southern Gold Coast doesn’t have the same kind of density as other parts of the city but right now there are some exciting projects happening there such as the Greenmount resort redevelopment and Rockpool.”
Among the most prolific builders has been S & S boss Paul Gedoun who is currently building the $209m Radia, his fourth tower in the area in the past four years.
The developer said demand remained high for units in the 14-storey building.
“We are excited to be progressing our vision for Radia, which is the next major project to build on our strong momentum at Rainbow Bay,” he said.
“We have always been big believers in this enclave overlooking Snapper Rocks and with a prevailing north-facing view, and buyers have supported our vision accordingly.
“The demand and lack of supply equation has contributed to this exponential price growth as premium products not seen in the area come into the market.
“We expect this to continue with developments that are well-funded, being undertaken by developers with experience navigating difficult markets, and have secured builders which many have been unable to do in the current market with construction costs so high.”
Mr Gedoun’s third tower, Esprit, is nearing completion, with several units initially bought off-the-plan in 2021 selling for significant higher sums.
Of those, a two-bedroom unit originally sold for $999,000, was bought this year for $1.8m, while another of the same design which sold for $909,000 has changed hands for $1.7m.
A three-bedroom unit which initially sold in 2022 for $1.8m also went this year for $2.8m.
Jayde Pezet, who runs sales for the company, said: “Exceptional growth in residential values since we launched Esprit has delivered significant gains for many buyers who were among the first to recognise the potential of this spectacular part of the Gold Coast and the plans we had for this incredible site”.
“In some cases, prices for apartments have doubled.
“It also reflects the confidence that new buyers have in the southern Gold Coast market, which remains a strong investment opportunity, characterised by limited supply and high demand.”
Several major projects are currently in the pipeline for Rainbow Bay and Coolangatta.
They include:
• Abedian and Co’s $550m Greenmount Beach Resort development
• A 105-unit, 14-storey mid-rise tower earmarked for Haig Street by Immerse Projects.
• A 16-unit, seven-storey complex which will replace a one-storey brick house on Dixon St.
• The future stages of the multi-tower Kirra Point project.
Sabha Abedian, who is building the resort under his Arium Group brand, said more than half of the units in the project had already sold.
“Historically the southern end of the Gold Coast was a precinct for NSW and Victorian visitors who stayed there on holidays and there was not much on offer in terms of new residential property but now there is,” he said.
“We are seeing a renaissance there as part of the renewal which began around 10 years ago and we have seen profound change south of Broadbeach as people have rediscovered the southern Gold Coast, particularly those who want to be owner-occupiers.
“Arguably you have the most beautiful beaches located there, including Kirra, Snapper Rocks and Rainbow Bay, and they are right on the doorstep.
“You can also see the Gold Coast’s emergence as a culinary destination and that has primarily taken shape here in the city’s south.”
OLD RESORT COMES DOWN
The demolition of Rainbow Bay’s shuttered Greenmount Beach resort is ramping up.
The complex, which opened in 1980, closed in April to make way for the new Greenmount Residences.
Demolition is being done by Demex and Memar Construction to remove the structure ahead of construction beginning on the new project, from Abedian and Co.
“This marks an important transition for a building that once replaced the timber guesthouses of the early twentieth century and helped shape the character of the southern coastline,” a statement from Demex said.
Abedian and Co launched the project to the market late last week.
Construction of the first stage will take three years, with the first residents to move in by Christmas 2028.
The first stage of the project to be approved, the Eden Residences, will be 16 storeys and will feature 54 units containing nearly 150 bedrooms.
It was approved in 2023 and will front Eden Ave, however, it is expected to be the last building to be done.
The complex’s second stage – a pair of 14-storey towers – will have 61 units.
The third stage will feature two eight-level towers which will have 22 and 23 units respectively, with a mixture of two and three-bedroom luxury apartments.
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