First look: KTQ sell Garfield Terrace site for $56 million as demand soars for Gold Coast beachfront sites
Developers are continuing to spend considerable money on prime beachfront development sites in the Gold Coast.
The biggest settled site sales so far this year have been on the Surfers Paradise dress circle, where KTQ received approval for Seren, a mixed-use, luxury hotel and branded residence building at 27 Garfield Terrace.
They sold that 2,025 sqm site, with plans for 60 hotel rooms and 60 luxury apartments above, starting at 350 sqm, for $56 million to a company linked to Hong Kong interests.
Sydney developer Luxcon also has offloaded the building Seabreeze, on a 1,011 sqm at 63 Garfield Terrace where they were planning Escape, a 35-level tower with 31 whole-floor apartments. Winx breeder John Camilieri paid $37 million for the site.
Sydney billionaire Sam Arnaout's Iris Capital still holds 900 sqm and has approved plans for a 38-level, 51-unit tower.
A render of Serēn.
The latest Colliers Apartment Market Report shows a surge in demand for premium beachfront residential development opportunities across the Gold Coast, with several transactions already exceeding $30 million in 2024.
“Despite market challenges, demand for premium sites has remained remarkably resilient,” said Troy Linnane, Director of Collier’s Residential.
“These high-quality sites are offering end values that continue to support necessary returns for project feasibilities, making them incredibly attractive investments.”
Colliers Gold Coast notes there has been no sign of a decline in site values, underlining the strength and confidence in this sector.
The appetite for luxury, owner-occupied properties in sought-after beachside locations continues to underpin the region’s market activity, demonstrating that the allure of the Gold Coast remains undiminished.
Developers are increasingly recognising the strategic advantage of bringing construction in-house, a trend identified in the Colliers Apartment Market Report as essential for managing timelines and costs amidst ongoing constraints in external builder capacity.
This move has proven critical in delivering projects on time, with many developers leveraging their in-house capabilities to stay ahead in an industry facing an unprecedented capacity crunch.
The report predicts that the demand-supply imbalance will persist into 2025, further driving gross realisations across the market.
The dwindling supply of new units presents developers with a unique opportunity to meet demand, particularly for properties under the $2 million mark that cater to a broader buyer pool.
“Local developers who have the experience and build solutions in place are particularly well-positioned to capitalise on these opportunities,” said Jackson Robinson, Residential Executive at Collier’s Gold Coast.
“The ability to deliver viable, premium products at a range of price points is proving to be a competitive advantage in the current market, especially as the constraints on builder capacity are expected to continue
into the new year.”
