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The month in review: Gold Coast
By Herron Todd White
November, 2009
The Gold Coast is one of the fastest growing cities in
Australia with population growth underpinning the
residential property market. The establishment of
new transport, health school and shopping centre
infrastructure is critical to complement residential
development activity. We have seen the ongoing benefits
of the Tugun Bypass project and the eight lane Pacific
Highway upgrade. Whilst there aren’t any infrastructure
projects of this size currently proposed for the Gold Coast,
there are a number of smaller, but significant proposed or
almost completed projects.
The extension of the Brisbane to Gold Coast railway line to
Varsity Lakes will be complete in late 2009. This transport
hub, which will cost an estimated $123 million, will
feature the Varsity Lakes Railway Station and the Varsity
Station Village. The Varsity Station Village will feature a
bus interchange, retail shops, commercial offices, new
housing, parks and open spaces.
The extension of the train line to Varsity Lakes is the first
step to the future connection with Coolangatta (by 2026).
Varsity Lakes is an integrated urban and business area,
which features both primary and secondary schools, Bond
University and numerous Council parks, together with
Varsity Central, which is the primary business precinct of
the locality. Varsity Central is located in the north-eastern
precincts of the estate and is developed with a mixture
of office buildings, professional suites, home occupation
offices, commercial facilities, medium density residential
development and educational establishments. The
combination of what Varsity Lakes currently has to offer
and the completion of the Varsity Lakes Train Station will
further popularise this suburb and surrounding suburbs.
Some of these surrounding suburbs which may see the
benefits would be Burleigh Waters and Reedy Creek.
We consistently mention the Coomera Town Centre
in our Month in Reviews as the future hub for a large
community comprising, retail, commercial, transport,
educational and residential components. This project has
been talked about for some time, and is still mentioned
in the local papers on a regular basis. The Coomera Town
Centre has been identified as a Major Development Area
in accordance with the SEQ Regional Plan 2005-2026. A
Coomera Town Centre Structure Plan was endorsed by
Gold Coast City Council in February 2009 which will guide
planning intent for the area and ultimately determine
land use and infrastructure considerations. This town
centre is seen as a long term project and the benefits of it
are not likely to seen in the short term. Investors should
be looking to hold for in excess of 5 years experience the
benefits of what this Centre will offer on completion.
Southport is slowly being transitioned from a tired, dated
suburb to a vibrant commercial, retail and residential
hub. Over the past 5 years the development of a number
of high rise projects (Nexus, Pivotal Point, Brighton on
Broadwater and Southport Central) in conjunction with
a new retail and commercial identity, has contributed
a slow but effective (albeit ongoing) urban renewal
outcome. The most prominent infrastructure project
in this area is the $42 million redevelopment of the
Broadwater Parklands. This project has converted a
carpark and surrounding grounds into a parkland project
similar to the likes of Southbank in Brisbane. The Parkland
is likely to be the venue for cultural and sporting events.
Also residents and day trippers will have a suitable venue
for family picnics or recreational activities. The benefits
of the new parkland are evident. Southport will now have the benefit of offering a pleasant integration with
the Broadwater which will rival the hustle and bustle of
Surfers Paradise.
Whilst more of a long term project, The Gold Coast Rapid
Transport System will initially have benefits for those areas
between Griffith University and Broadbeach. The transport
corridor has been agreed upon, with resumptions to
take place in the next 12 months. Following the appeals
process, construction is likely to commence some time in
2010. Construction is expected to be complete with the
system up and running by 2013. A new transport corridor
for these areas is likely to potentially increase the density
of the development near the corridor which will in turn
increase the number of people moving closer to the
corridor. Those developments or housing estates which
are currently close to the corridor are likely to see the
better future capital growth in the next few years.
In 2012, Parklands on the Gold Coast at Parkwood will
be home to a new 750 bed tertiary facility to create
the Gold Coast University Hospital. The Hospital will be
constructed on a site just north of the Griffith University
at Parkwood. The $1.55 billion health facility will provide
complex care, research and teaching opportunities on the
Gold Coast and will play a key role in training the clinical
leaders of the future. The co-location of Griffith University
and the Hospital will create an environment where the
teaching of health professionals will become a natural
part of hospital life. Griffith University will then further be
regarded as a high quality medical teaching facility which
will attract a greater number of students. Inevitably they
will need somewhere to live, which will underpin rental
returns, which in turn, will drive property prices.
The completion of the Gold Coast Airport runway
extension has allowed the Gold Coast to accept long haul
flights from China, the Middle East, India, Japan, Singapore,
Taiwan, Malaysia and Korea. The Gold Coast Airport is
also undergoing a $100 million terminal redevelopment
bringing the Airport into the 21st century. Whilst the Gold
Coast has not chosen to use covered access from aircraft to
the airport (because we know the weather will always be
sunny and warm) the terminal will feature new domestic
departure lounges, and new retail facilities. The potential
now to attract long haul visitors will further improve
the integrity of our local tourism industry. Tourism does
play a role in the Gold Coast residential property market.
Holiday returns dictate the quality of a local residential
holiday investment property.
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