How youth crime is changing the way we live

A leading real estate industry voice has outlined how the fear of youth crime is impacting Queensland’s housing market.

The scourge of youth crime is driving up apartment prices on the Gold Coast, as fearful residents seek refuge from the threat of violence by investing in secure high-rise buildings.

Real estate principal Michael Kollosche raised the less glamorous side of the city’s unit market boom, which is often pinned to surging interstate migration and the demand from affluent buyers for lavish lock-and-leave beachside holiday pads.

Mr Kollosche said homebuyers were prioritising safety and security

But Mr Kollosche said many unit buyers were downsizers who viewed high-rise living as a safer alternative amid a crime wave where teen thugs prowl suburban streets by night.

“A lot of people have been affected by youth crime and just don’t feel safe anymore,

particularly the older generation,” he said.

“So, security is something many now feel that they must consider when moving.”

A luxury full-floor apartment in Palm Beach sold for $7.625m in the Perspective Two Sea building

MORE NEWS

Housing crisis: Property prices hit new high

Queensland no-go zones named

Real estate boss clinches $9m mega-mansion sale

Mr Kollosche said the prevalence of youth crime affecting the housing market would be a “contentious issue” at the next election.

“The public has been very vocal about the issue for the past few years, with little solutions

presented or actions taken.

“Considering all these factors alongside the current 30 per cent deficit between net

migration and the building of new dwellings, it’s no wonder that apartments are

performing so well.”

Sibling duo Rob (left) and Andrew Gray, of Graya. Picture: Supplied

Developer Rob Gray, who heads up Graya with brother Andrew, said the company’s new luxury builds incorporated added security features for buyers’ “peace of mind”, including multi-stage entry, sophisticated alarm system, and CCTV monitored by a caretaker.

Graya launched a pipleline of Gold Coast projects in 2023, with construction of the 12-storey Kloud apartment building now underway.

“Residing in an apartment is rapidly becoming more and more popular, and the added security and safety of being off the ground and having cars parked in basements is a big part of that,” Mr Gray said.

“With the scarity of prime land continuing to grow, developers are offering up a bigger and better apartment product that allows for long-term living, because these apartments are as well suited as a permanent residence for your family as a traditional house would be.”

A one-bedroom, one-bathroom unit in the older-style Breakers tower at Surfers Paradise sold for $615,000

Crime figures released by the Australian Bureau of Statistics (ABS) this week revealed 23,254 youth defendants aged 10–17 years were finalised in 2022–23.

The median age of these defendants was 16 years, and almost three-quarters were male.

Unlawful entry with intent was one of the three most common principal offences among youth defendants, alongside theft and acts intended to cause injury.

Last year, Mr Kollosche tracked down and apprehended a suspected thief accused of raiding his office of equipment during the Easter break.

Michael Kollosche tracked down a suspected thief in Surfers Paradise

He made a citizen’s arrest on locating the alleged thief who broke into his company’s Broadbeach office.

The latest K Property Insights report, compiled by Mr Kollosche with industry analyst Michael Matusik, found Gold Coast apartment prices had registered growth for the past 10 years.

Unit prices were up in real terms by 15 per cent annually, with the trend expected to continue for the coming decade.

Buyers across all price points are choosing high-rise living

Mr Kollosche identified continued interstate migration as a contributor to the apartment

market’s continued success, with cashed-up buyers from Melbourne and Sydney purchasing secondary residences.

Downsizers, who transitioned to apartment living when their families moved away, were another key driver.

“We have seen a shift towards developers delivering larger, half and full-floor apartments

in boutique residential-only buildings to cater for those moving from larger homes, who

don’t want to compromise on size and quality,” Mr Kollosche said.

The Gold Coast apartment market has not only fared well but exceeded most locations around the nation, including capital cities, in terms of annual price growth.

A two-bedroom, two-bathroom apartment in the 15-floor Vantage View building at Benowa sold for $785,000

According to the report, apartment prices in the city have risen 98 per cent over the past 10 years, compared with 43 per cent nationally.

Given the scarcity of viable apartment development sites and the costs associated with the construction of mid to high-rise apartments in South East Queensland, alongside current buying trends, the Gold Coast was likely to continue to outperform much of Australia in price growth for some time.

Full-floor apartments offer families a living experience akin to a traditional house

“Buyers are going to have to pay a premium to get a completed product or to secure an opportunity in a building that is actually going to be delivered,” Mr Kollosche said.

“We used to have an oversupply of apartments on the Gold Coast. A lot was being built and that supply had not been taken up.

“However, during the pandemic, we saw a massive increase in net migration, which absorbed that surplus stock. Now, with the building crisis and lack of labour, we simply cannot meet buyer demand.

“Meanwhile, people who are buying apartments now are holding on to them, so we are in a market where there is just very limited stock. I do not see that changing any time in the foreseeable future and the data supports that.”

Prime development sites are in short supply

Originally published as How youth crime is changing the way we live