Gold Coast Skyscraper Developers Becoming Cautious
Sydney Morning Herald
Saturday July 12, 2008
THE retreating property market is beginning to hurt the Gold Coast unit and serviced apartment sector.
Although conditions remain stable, developers are cautious about new projects. In its latest report on the sector, the independent adviser and valuer LandMark White says the Gold Coast's high-rise market is beginning to reflect broader residential trends, namely lower investment and growth as a result of rising concern about interest rates, worsening sharemarket performances and business confidence and credit retraction. A number of listed property developers are exposed, including the Hilton chain, Thakral, and the Gold Coast-based Sunland and Raptis groups. LandMark White's national research director, Vanessa Rader, said projects that offered longer settlement time-frames were performing better. With the recent settlement of projects such as Amalgamated Property Group's Sierra Grand and Raptis Group's Southport Central, Tower 2, the proportion of contracts proceeding to settlement was lower compared with previous years, Ms Rader said. "This is again seen as a sign of the current softer market in terms of built stock. Surfers Paradise remains the centre of Gold Coast high-rise unit activity."Projects that had been released to the market in 2008 included The Hilton Hotel and Residences - Tower 2, Reve on River Terrace and Luxe. "Although they appeal to different sectors of the market due to their location and overall standard, the projects are expected to add approximately 440 units to the market." Other notable activity in the area is the continued marketing of the Hilton hotel and Residences - Tower 1 and Paradise Resort - Tower 1, which were released towards the end of last year, with strong sales recorded. Construction has recently begunon a number of projects including Elston, The Hilton hotel and Residences - Towers 1 & 2 and Juniper's Soul skyscraper. LandMark White says 2625 high-rise units are being marketed off the plan on the Gold Coast. Of these, 1521 units (58 per cent) have sold and 1104 units are unsold. Most of the off-the-plan units being marketed are in the suburbs of Broadbeach, Surfers Paradise and Southport.
© 2008 Sydney Morning Herald
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