The month in review: Gold Coast
By Herron Todd White
The residential area loosely bounded by Queen Street to the north, Bauer Street to the east and Chester Terrace to the west is in the southern fringe of the Southport CBD and has always been well regarded by the local market. Its benefits are proximity to the commercial CBD, medical precinct and Broadwater Parklands with a good public bus service. It features generally wide streets with a mix of older character style dwellings and slightly dated semi-modern medium density low rise and townhouse style unit developments. However, the area has become dated with a loss of its former appeal and identity.
We are now seeing a regenerated interest in this area fuelled by a number of significant infrastructure and zoning changes.
1. The area has now been rezoned as Special Purpose by the Gold Coast City Council which allows more relaxed density and height building restrictions;
2. The precinct has recently added two light rail train stops within close walking distance providing easy commuter connection through to Surfers Paradise and Broadbeach to the south and through the CBD and onto the new Gold Coast University Hospital and Griffith University in Parkwood to the north. (Approvals have now been granted for Stage 2 to continue the line through to Helensvale and make connection with the Brisbane City/ Airport rail system);
3. Southport CBD itself is undergoing continuing upgrades including the introduction of its own China Town precinct, road upgrades and announced renovation of Australia Fair, one of the Gold Coast’s largest retail shopping centres. Southport has also secured the upgrade and expansion of a new aquatic centre in preparation for the 2018 Commonwealth Games and the surrounding Broadwater Parkland has and is undergoing continued upgrade;
4. In general, land values are pushing up as the Gold Coast expands mainly to the west and through the northern corridor making centrally located areas closer to the Broadwater such as Southport more desirable.
There has been keen development and investment in this residential precinct reflected in both single detached dwellings and low to medium rise investment. Some examples are:
• The Rise Southport, a seven level 30 x 2-bedroom unit complex situated at 43 Lenneberg Street on a 1,016 square metre site which was completed in 2015. Units were reportedly sold by the developer very quickly in the range of $370,000 to $420,000.
• 18 Lenneberg Street, a circa 1900, renovated two level, 3-bedroom, 4-bathroom detached character dwelling (living area of 344 square metres and land area of 701 square metres) recently went to contract for $1.1 million. This is a significant sale as when the property sold in May 2014 for $850,000 it was reportedly in a slightly inferior condition.
• 29 Meron Street sold for $900,000 in February 2015. The property is a basic 1960s brick and tile dwelling comprising 3-bedrooms, 1-bathroom with tile roof on a 673 square metre corner allotment. The site was purchased based on development potential of a proposed five to six townhouse unit development. The site had previously sold in 2013 for $560,000.
We note the development of the new landmark highrise tower complex to be known as Brighton on Broadwater – Sundale which is due to be completed by October 2016. The 55 level development will have five car parking levels, ground floor retail and levels six to 55 will comprise over 500 units of 1- 2- and 3-bedrooms as a mix of residential and serviced styled units. This complex is situated just outside the north-east boundary of the subject precinct. Currently the developer is marketing the non-serviced units between circa $425,000 and $950,000 (subject to confirmation).
Entry level investment can still be achieved in the subject precinct with say a typical 1970s basic 2-bedroom, 1-bathroom unit in the range of $270,000 to $300,000. A 3-bedroom brick and tile townhouse might cost an investor in the range of $390,000 to $440,000.
In the short to medium term we believe that this area will continue to go from strength to strength. The area will continue to modernise with higher density developments replacing some of the older less desirable buildings blended with renovated and prestige character dwellings.
Isle of Capri, Surfers Paradise
This central popular residential area was originally developed in the 1970s and until recently was serviced by an older style shopping centre. This centre has recently been rebuilt, has a new tenant mix and has been well received by locals.
This locale has seen good growth in value levels lately which can in part be attributed to the improved retail facilities and also to its proximity to the new tram line.
35 Salerno Street recently sold at auction for $675,000. This is a deceased estate sale of a circa 1980s single level brick dwelling providing basic 2-bedroom, 1-bathroom accommodation (living area of 112 square metres). The sale represents entry level for a non-waterfront block here. The majority of value was in the land with the improvements having minor added value.
Canal front properties start at circa $900,000 with 36 Gibraltar Drive recently going to contract at $940,000. A circa 1975, onground, 4-bedroom, 2-bathroom, brick dwelling (living area of 205 square metres; outdoor area of 28 square metres; car area of 41 square metres; and boat shed area of 31 square metres). The dwelling has rear canal frontage of approximately 17 metres with a south-westerly aspect to the water. The improvements were in a run down, poor condition and added little value to the land.
114 Amalfi Drive went to contract in February 2016 for $1.55 million. This is a 4-bedroom, 3-bathroom, 4-car garage dwelling in a mostly renovated condition with rear river frontage with a southerly aspect to water, pool and jetty. Living area is 379 square metres.
Unit 43 Raffles on Capri sold last year for $425,000. This is a modern style two level townhouse unit within a security gated complex providing 3-bedroom, 2 -bathroom accommodation and tandem carport. It last sold November 2013 for $365,000.
With the population of the Gold Coast continuing to rise and demand for centrally located property in close proximity to facilities and the beach strengthening, this suburb can be expected to increase in popularity and value over the next five years.
Palm Beach on the southern Gold Coast is situated to the east of the Pacific Motorway, south of Burleigh Heads and Tallebudgera Creek and North of Currumbin, Tugun and Currumbin Creek.
The eastern boundary of the suburb is approximately four kilometres of beach front with a number of homes, high-rise unit complexes and parklands having direct beach frontage. There are also a number of canals and lakes throughout the area.
While this all sounds very appealing, in past years the area has had a bad reputation for being a lower class locality compared to a number of nearby and neighbouring suburbs such as Currumbin, Burleigh Heads and Mermaid Beach.
However in recent years the area has been regenerated into a trendy, locals style beachside suburb with a vibrant cafe and restaurant culture and pristine beaches being two of the driving forces in the change for the area. On the back of this, there has been strong market demand for properties in the area.
One of the main positive points in the marketplace was its affordability in relation to the neighbouring suburbs previously mentioned. However, on the back of this new wave of popularity and demand, prices have strengthened to a point where most of the Palm Beach residential market is now at historical peak values, some property types being circa 20% above pre GFC prices.
For example, 35 Coolibah Drive, Palm Beach sold for $485,000 in October 2007 when the Gold Coast market was last booming. The dwelling has since had minor upgrade renovations completed (estimated cost of approximately $50,000), and recently sold in September 2015 for $620,000.
In a shorter space of time, 31 Twenty Fifth Avenue, which is an older asbestos beach shack on a 405 square metre allotment, sold in January 2014 for $480,000 and sold in inferior condition in 2015 for $530,000. The vast majority of the value is the land component with very minor added value for the improvements.
Over the past 24 months, a large number of older style homes have undergone major renovations in order to modernise. In other cases, older style dwellings have been demolished to make way for modern housing and duplex units which are in very strong demand and attracting premium sale prices.
There is also a select number of new beach front low rise and medium rise developments of good to prestige quality under construction or having been recently completed with amalgamation of beach front and highway front sites becoming popular, where viable.
Entry level housing towards the western side of Palm Beach is now in the vicinity of $500,000 and beach shacks in The Avenues closer to the beach are seeing prices in the high $500,000s to early $600,000s. The upper end of the housing market comprises canal front properties and can vary from the mid to high $1 million mark to beach front homes from $2.5 million plus.
38 Mallawa Drive sold for $1.667 million at auction in September 2015 and was then used as a Boystown Prize Home Auction. At the time, the sale price was considered very strong but the market has continued to improve since.
While the market is booming in Palm Beach at present, there is a good chance that market conditions will fluctuate over the next five to ten years. However, with the likely extension of the light rail network (from Broadbeach through to Coolangatta Airport) and continued redevelopment of properties in the area, the demographic of the area may improve and continue to be one of the stronger markets on the Gold Coast.
Yarrabilba is a new satellite city situated to the south of Logan Village. Yarrabilba comprises a very large, master planned, mixed use residential, commercial, retail and employment estate which commenced development in 2012 on a 2,200 hectare parcel on the eastern side of Waterford-Tamborine Road. Prior to 2012, Yarrabilba was a rural area with large rural and rural residential allotments. To date, Lend Lease is marketing 1,700 residential lot sales, with a population of circa 2,300 people currently residing in the community. A Caltex Service Station and Star Mart convenience shopping outlet has recently been completed nearby to the north on the main road access to the estate. The following urban amenities are proposed over the next few years:
• medical centre (mid 2016)
• IGA supermarket (mid 2016)
• Yarrabilba Hotel and Tavern (late 2016 to early 2017)
• Village Centre neighbourhood shopping centre with Coles supermarket (Coles in 2017 and other ancillary retail development to be confirmed)
• Catholic primary school (2017) and two other school sites to be confirmed.
There are two other very large, master planned residential and mixed use estates which are proposed for the Flagstone/Undullah area, to the west of Jimboomba township (approximately 16 to 18 kilometres to the west of Yarrabilba). With two satellite cities in the area, Yarrabilba and Flagstone, the Scenic Rim and Lower Logan area is going through a construction boom at the moment.
The developer, Lend Lease, continues to slowly release stages with lots ranging from 250 square metres to 800 square metres with the majority of lots between 368 square metres and 683 square metres.
Early this year, lot 448 Tasker Street went under contract for $129,500. It is a 250 square metre, regular shaped, near level, inside lot with easy and direct access. Tasker Street is a sealed typical suburban street with concrete kerbing and channelling. Electricity, sewerage, telephone, gas and town water are not connected yet but are available.
3 Pinehill Street sold for $179,000 in August 2015 to a Queensland purchaser. It was originally purchased from the developer in June 2014 for $162,000. The block is a 420 square metre, easy sloping, regular shaped, inside lot situated at road level appreciating a north westerly aspect with parkland views.
With the market booming in the Gold Coast area, Yarrabilba seems to be a more affordable area in which to acquire a freehold modern dwelling. With the upcoming urban amenities in Yarrabilba, we will expect a steady growth in popularity and value over the short to medium term.