Apartment developers queue up as Gold Coast beachfront sites tighten further
There's not enough development sites to go around at the moment on the Gold Coast, as developers scramble for their next project amid quick sell-outs.
Ignite Projects boss Josh Foote reckons prices have just about doubled in the last 12 months, as vendors expectations continue to grow.
GV Property Group, the site amalgamation specialists, are expecting high demand for their latest off-market listing, a near beachfront development opportunity in Bilinga.
The 795 sqm site, at 135 Golden Four Drive, previously had approval for 12 apartments, however the site is being sold with a scheme in place for a boutique development of 20 luxury apartments, designed by EMK Architects.
GV Property Group's Luke Reaby says there's a limited number of luxury projects on the market in the area, with very limited planned beachfront supply.
"We are getting calls every day around beachfront sites, however these sites come with significant premiums and insatiable competition'", Reaby says.
GV Property Group has an expressions of interest campaign running to October 29.
The Bilinga market has been relatively untapped compared to its neighbouring areas of Coolangatta and Palm Beach.
The nearby Si Bilinga apartment project, by developer IDS Property, spans nine levels and has 15 apartments designed by Gatehouse Architects. That sits a few hundred metres up the road at 309 Golden Four Drive, previously sold by GV Property Group last year.
Sherpa Property Group sold out their yet-to-be-built 202 Perspective, the boutique five whole-floor apartment, which is less than 500 metres away at 202 Pacific Street, on the beachfront.
Sherpa has announced they are looking for four sites in 2022.
Both Si and 202 Perspective have similar zoning and development potential to the current opportunity, Reaby advises.
Two months ago, GV Property Group also sold 55 Golden Four Drive off-market to Brisbane Developer, Cielo Group, which is poised to create nine full-floor luxury apartments
CBRE's Nicholas Clydsdale says the heightened demand from all types of domestic purchasers has seen smaller-sized boutique projects in demand, with the site a prime example to take advantage of the current market conditions.
"Golden Four Drive is a growth area in the southern Gold Coast," Clydsdale says.
"This strength is primarily led by a shortage in supply in the area. The site is close to genuine amenity including the Tugun and Coolangatta shopping precincts.
"The lack of new product available, coupled with strong demand for beachside product, has created high levels of pent up demand for high quality residential in this location."
Clydesdale reckons around $8,500 per sqm to $10,000 per sqm is achievable under current market conditions, if the finish is similar to that of the likes of Bensons Chevron One development, Signature Broadbeach, or Acqua Palm Beach.
He says apartments level four or higher could see better returns given the heightened beach and ocean view potential.
Urbis town planner Patrick Hefferan says the site has strong development potential, particularly for a mid-rise residential development.
