Gold Coast PROPERTY

THE GFC-inspired property slowdown has filtered through to Gold Coast residential land values which have dropped an average 5 per cent since they were last measured in 2007.

Dry suburbs generally fared better than waterfront areas which took hits of up to 29 per cent, according to a State Government report released yesterday.

The Property Market Movement for the 2010 Valuation reveals that plummeting unimproved values in prestige suburbs like Mermaid Beach (-29 per cent), Surfers Paradise (-18 per cent), Paradise Point (-15 per cent), Hollywell (-14 per cent) and Runaway Bay (-13 per cent) contributed to the city’s overall negative result.

Not a surprising outcome given that the valuations are based on sales during the period and that the GFC hit the Coast’s well-heeled suburbs hard in terms of sales volumes and prices.

But ratepayers whose land values have fallen should not hold out hope for a significantly lower rates bill.

Gold Coast City Council budget boss Eddy Sarroff said some ratepayers whose valuations had fallen substantially below the city average would receive a slightly lower rates bill but changes in land values had no affect on council coffers.

“The fluctuation in valuation does not have an impact on our revenue — the only difference this fluctuation in land values will make is between one ratepayer and another ratepayer,” said Cr Sarroff.

Multiple unit properties plunged an average of 17 per cent, in line with investors abandoning the sector at the height of the downturn.

On the other side of the ledger, the more affordable and land-rich areas of Coomera and Ormeau were the standout performers, recording hikes of 20 per cent and 15 per cent respectively, reflecting the increasing attractiveness of entry-level property over the past few years.

Land in Coomera now has a median value of $205,000, while in Ormeau it sits at $197,500.

The only other Gold Coast suburbs in positive territory were Arundel, Ashmore, Carrara, Highland Park, Merrimac, Molendinar, Nerang, Parkwood, Upper Coomera and Worongary, all of which had single-digit rises. The remaining suburbs had zero or negative growth.

A  release of large blocks will be on offer at Coomera Springs next week as the 123ha masterplanned community continues to attract steady sales.

With just nine lots available in completed stages, Coomera Springs developer Global Properties Australia will release the 15-lot stage for sale off the plan.

Construction of the large-lot precinct, which provides blocks from 1200sq m to 1389sq m, will begin immediately and is due for completion in three to four months.

Global Properties manager Adam Gilbert said prices would range from $270,000 to $320,000, averaging less than $290,000.

“The families attracted to Coomera Springs all tell us the open space environment is one of the most important factors influencing their choice to live here,” he said.

“Land size is a big drawcard, especially in a location with such excellent access to education and amenities, and we have always had very strong inquiry in regard to the availability of our planned big blocks.

“The lots are in a leafy enclave virtually surrounded by bushland.

“Most have frontage to a cul-de-sac, so it will be quiet and private yet only a short stroll to the community oval.

“It is quality elevated land which will lend itself to split-level designs and striking architecture, so we are looking forward to the emergence of a distinctive neighbourhood.”

The $130 million Upper Coomera estate, off Old Coach Road, is now an established community complemented by the opening in 2008 of Coomera Springs State School.

Around 200 lots and a childcare centre remain to be developed over a timeframe of two to three years, depending on market conditions.

The estate features extensive parklands with a large centrepiece lake, boardwalks, viewing decks, parks and playgrounds, barbecue pavilions and picnic areas, a recreation oval, wildlife corridors and nature trails.

It is just west of the M1. Go to coomerasprings.com.au

The nine remaining homesites in completed Coomera Springs land releases range in size from 629sq m to 1,232sq m, are available at prices from $225,000.

Investors have buoyed the Gold Coast’s turbulent property market, with unit and townhouse sale prices increasing as first-home buyers drop out of the market.

The Coast bucked a statewide trend, which saw the number of townhouse and unit sales drop by 24 per cent across Queensland in the final quarter of 2009, according to the latest REIQ data.

The report also shows the number of sales under $500,000 fell by 28 per cent statewide between September and December.

But Gold Coast sale prices increased a modest 3.3 per cent in the quarter to record a median price of $380,000, indicating confidence is returning.

With 1417 sales recorded on the Gold Coast, REIQ Gold Coast zone chair John Newlands said the region remained a popular choice for southern investors unable to break into Melbourne or Sydney.

“We have bucked the trend and I put that down to people wanting to live here,” said Mr Newlands.

“The December quarter gain of 3.3 per cent, is a sign that things are on the up.

“As the market gets overheated in Sydney and Melbourne prices skyrocket, the Gold Coast has always, for the last 20 years, been a recipient of buyers looking interstate.

“People feel the market has reached a level that represents value for buyers to return to the marketplace.”

Paradise Point recorded the biggest loss, with the median property price dropping by 26.4 per cent to $364,500.

Hope Island fell 17.3 per cent to $430,000, while Mermaid Beach prices dropped 14 per cent to $317,500.

Carrara recorded a 28.7 per cent increase on median unit prices to $437,500, Coolangatta rose 17.3 per cent to $467,500, while Robina increased 12.1 per cent to $479,500.

Mr Newlands said the suburbs that had declined did not indicate property prices had dropped, but that people were buying at the mid-range of the market.

“It’s a supply and demand situation. Prices have definitely plateaued in the sub-$500,000 range,” he said.

“Many people are buying at below replacement costs, it can really only go one way … up.”

He said while rate increases may have affected buyers in other markets, most Gold Coast investors had factored subtle rate rises into their purchases.

“I predict we were going to start to see steady solid growth, I don’t think it will skyrocket,” he said.

Buyers have committed to 11 apartments in a Hope Island project within a month of its launch.

Construction of the $35 million Island Grove complex is expected start mid-year for long-established Gold Coast developer Rayjon Group.

Sales to date in the 81-unit project total $4.5 million and include apartments priced from $380,000 to $435,000.

Buyer interest has focussed on the Forest building which has a northerly aspect and courtyard garden views.

Marketing agent Ranine Beaumont-Harvey, of Landmark Sales Property Group, said people looking to maximise their leisure time were a driving force behind the sales run.

“Being close to Paradise Point has also proven a drawcard as the range of dining and shopping options along with the surrounding water, parkland and natural amenities attract a varied range of buyers,” she said.

“There has been a high level of inquiry from locals as they know the quality of the region and scarcity of new two-bedroom apartments in this price range.”

Ms Beaumont-Harvey said empty-nesters and interstate investors were among the buyers.

“A relaxed holiday-like lifestyle with the added security, facilities and lower maintenance of apartment living has appealed to a number of empty-nesters looking to enjoy more free time.

“We’ve also had buyers from as far a field as Victoria looking to purchase a great value holiday home with capital growth potential in one of the Gold Coast’s premier suburbs.”

The average price of the two-bedroom apartments is $415,000.

LIVING among the clouds, a pool in the lounge room, a Hugh Hefner-style pad or $20 million of ultimate beachfront luxury — never have so many impressive Gold Coast penthouses been on the market at the same time.

From the 360-degree views offered from the Q1 tower penthouse to $20 million opulence at exclusive Surfers Paradise building Jade, to the stark black interior of a Pivotal Point penthouse or the lavish surrounds of Ephraim Island’s top offering — penthouses on the Coast have it all.

Seven of what are arguably the Coast’s top 10 penthouse properties have landed on the market at once, with the three-level lavish Jade at No.1 with a $20 million-plus price tag.

It has five bedrooms, a four-car lock-up garage, two kitchens and a pool next to the living room with views over the Coast.

A close second is the 940sqm penthouse at Q1, which sprawls across one level with a pool in the lounge room — within sight as you step out of the lift.

Ray White Broadbeach principal Gary Gannon is taking the never-lived-in property to auction for Japanese investor Akeo Kakemoto, who bought it off the plan and decided to sell on the back of the strength of the Japanese yen.

With floor-to-ceiling windows, the 74th floor apartment is so high residents look down on the city’s New Year’s Eve fireworks that are set off from the building.

“It is a true penthouse on the Gold Coast,” said Mr Gannon.

Even the bathroom has views across the ocean and the Gold Coast skyline.

The Elysee at Kirra penthouse is just as impressive.

The architect-designed super luxury 864sqm beachfront property has an inground pool, 4m high ceilings, a private internal lift, Iranian marble floors, an 18m lap pool and a four-car lock-up garage.

The Allure, Sentinel at Budds Beach, Rivage Royale and Chevron Renaissance also offer lavish beachfront penthouse living but there are also the extravagant penthouses that give the Gold Coast its variety.

The Vogue penthouse appears to have channelled Playboy mogul Hugh Hefner’s taste with the two-level, two-bedroom home featuring an exotic theme with fireplaces, leather and granite.

Then there is the Pivotal Point penthouse at Southport which is opposite to the features of most other super apartments.

Devoid of colour, black dominates creating a stark contrast and very sexy feel.

The Rivage Royale, Pivotal Point and Chevron Renaissance are the only three penthouses of the top 10 not on the market.

FLAMBOYANT developer John Fish will include a brand new golf course in fresh plans to redevelop the Surfers Paradise Golf Course.

The Hope Island developer said he was not surprised the Gold Coast City Council yesterday rejected his application to build an $850 million ‘mini-city’ on the waterfront block.

Mr Fish, who rejected rumours he was in financial strife after Westpac took control of a parcel of land at the front of the golf course, said he would work closely with councillors to find a compromise.

The 40ha site is owned by Mr Fish and Chinese businessman Edwin Yu.

The pair originally lodged a development application for a water-oriented community proposal, which included plans for up to 1200 apartments and 74 waterfront blocks.

“We will consider all of the community’s objections to the development and respect the fact the councillors have heeded the wishes of the community,” said Mr Fish.

“There are obviously appeal rights but I believe there is potential we could retain some remnants of a golf course with some development.”

Mayor Ron Clarke has told Mr Fish he needed to retain open space.

Other councillors opposed the application because of flood and traffic concerns.

Mr Fish said there was no threat of the land being taken by the bank.

Neighbouring residents are cautiously confident they have won the battle.

Clear Island Waters Action Group member Rob Fraser said he was relieved the council had finally shown ‘common sense’.

The application will be officially rejected at next Monday’s full council meeting.

ALL eyes will be on The Sovereign Islands’ most expensive and iconic mega mansions during the next few weeks as owners lose patience with long listings and send their properties to auction.

Three of the super homes in the exclusive Gold Coast suburb will go under the hammer in the next fortnight, starting with the seven-bedroom, nine-bathroom, three-kitchen ‘Baltimore’ which will be auctioned today.

The four-level, five-bedroom, seven-bathroom ‘Bellagio’ will be auctioned on February 13 and a forced auction of Marina Quays developer John Fish’s $14 million Sir Lancelot Close mansion will take place on February 14.

It comes as a new trend in high-end real estate begins to emerge, with agents opting for a shorter marketing campaign followed by an auction, rather than a potentially long-term listing that fails to net buyers.

The change of tack follows the record $9 million sale of The Sovereign Islands mansion ‘Utopia’ which was auctioned in November last year.

Professionals Paradise Point agent Jeanette Schmidt will put Mr Fish’s 2103sq m, seven-bedroom home under the hammer after months listed without a solid bite.

“Auctions seem to be bringing more interest from people … they feel like they’ve got a better chance of buying,” she said.

November 2009 figures show Gold Coast property owners were still having to drop their asking prices by 6.8 per cent. But it was not as drastic as the 10.2 per cent discount theyhad to swallow at the height of the property crash in November 2008.

The discount is the highest of Australia’s main cities, and yet Gold Coast properties still spend the longest on the market at an average of 106 days compared to Sydney (75), Brisbane (82) and the lowest, Canberra (64).

Ray White Paradise Point agent Amir Mian will today auction the ‘Baltimore’, which was built by developers Chris and Michelle Kahler and sold for $11 million to Susan Lillioja in 2006.

Another Kahler-built mansion ‘Bellagio’ — touted as one of the nation’s best homes — will be taken to auction by Mr Mian mid-next month after failing to secure a buyer since it hit the open listed market months ago.

Another Sovereign Islands property at 23 Hampton Court will be put under the hammer today by Mr Mian where it has been promised ‘the seller will meet the market’.

THE wraps are off the largest residential development at Sanctuary Cove since the resort was created 21 years ago.

The $120 million prestige project is a joint venture between the Sunland Group and resort owners Mulpha Sanctuary Cove (Developments).

The joint-venture development will include ultra-luxury homes offering residents golf course and/or water views.

Sunland and Mulpha have entered into a partnership to deliver 129 residences in two precincts to be known as The Estate and The Address.

The Estate will feature 11 homes overlooking The Palms golf course.

Sunland Group managing director Sahba Abedian said the precinct had attracted strong interest ahead of its launch next Saturday.

“The combination of a world-class residential resort in Sanctuary Cove and a world-class developer in Sunland is a powerful one, with a shared reputation for quality, prestige and innovation,” he said.

“We believe The Estate golf residences are perfectly positioned and perfectly priced to appeal to a new generation of Sanctuary Cove residents ready to experience the resort’s unparalleled country club lifestyle.”

Mulpha Sanctuary Cove (Developments) executive general manager Alison Quinn said the joint venture with Sunland involved the creation of two new holes on The Palms golf course and 4ha of lakes.

Ms Quinn said The Estate offered the first golf course homes at Sanctuary Cove in five years and presented a finite opportunity for buyers.

“After this project, there will not be any further new homes to be created on The Palms golf course — all the sites have been sold,” she said.

First stage homes have three floorplans ranging in size from 265sqm to 272sqm.

All will have three bedrooms and luxury fixtures and finishes including natural stone floors, timber features, custom-made joinery, European appliances and ducted airconditioning.

Homes are priced from $970,000 to $1.03 million.

Two display homes will be open on Sanctuary Cove Boulevard each day from January 23.

RESIDENCES in the highly anticipated $650 million Salacia Waters luxury waterfront community at Paradise Point have hit the market today priced from $430,000.

One of the largest waterfront residential projects under way in Australia, Salacia Waters will have 470 apartments and villas, starting with the first stage, released today, comprising 131 apartments across five buildings.

Stage one is due for completion by the end of the year and will also include a 72-berth marina and 13 three-bedroom villas, which are scheduled for later release to the market.

Today’s release includes a mix of one, two, three and four-bedroom waterfront and park-view residences including several penthouses.

Apartments will range in size from 87sq m to 369sq m and will be priced from $430,000 to $3.1 million.

The initial stage will also offer 600sq m of retail and dining space with an outdoor boardwalk dining precinct as well as home offices with a ground-level street presence.

Global engineering giant Lotte Engineering and Construction and Korean businessman Benjamin Shin are developing the community on a spectacular 10.8ha site at the tip of Paradise Point fronting the Coomera River and the Broadwater.

The land previously housed one residence and an air strip.

Salacia Waters was designed by US-based masterplanners DPZ Pacific and will have a network of walkways and a public promenade linked to the popular Paradise Point Park.

Facilities will include a gymnasium, a private residents’ club, swimming pools and spas, a sauna, large water features and open parklands.

Lotte Engineering and Constructions Australian director Harrison Byun said Salacia Waters would create a new lifestyle destination adding to the city’s already strong international appeal.

“With Salacia Waters occupying the last remaining undeveloped parcel of land fronting the Broadwater, we believe the completion of this project will add significantly to the area,” he said.

The sales office is open every day at 17 Killowill Avenue.

Go to salaciawaters.com.au

SIZE does not matter for Elizabeth Schwartz — it is all about position when it comes to living on the Coast and there is an increasing number of people who feel the same.

The 22-year-old’s one-bedroom Broadbeach apartment is just a short walk and a lift ride from everything she needs — the beach, restaurants, shops and nightclubs.

“We spend more time outside — we eat here, drink here and play here. It has everything we need,” she said.

Gold Coast City Council planning chairman Ted Shepherd said Ms Schwartz was one of a growing number of people who were happy to be squeezed on space as long as their apartment was centrally located — and developers were more than happy to comply.

Cr Shepherd said there had been an increasing number of one-bedroom apartment developments proposed in the past year, which was a shift from the years before.

“Before that, the unit developments were getting bigger and bigger — in some cases we were getting developments that were one unit per floor,” he said.

Phillip Usher Construction recently advertised a proposed change for its high-rise development on Marine Parade in Southport — increasing bedrooms from 356 to 631 as part of a planned shift to smaller apartments.

Cr Shepherd said single-bedroom unit complexes were popular in Southport, Surfers Paradise and Broadbeach.

“It is all about people living that cosmopolitan lifestyle,” he said.

“They want to go out and eat and drink and just come home to sleep.”

Cr Shepherd said the trend had real advantages for buyers and sellers.

“Developers are … having trouble selling some of the larger units in the current economic circumstances and for those people looking to get into the property market, they are able to do so with these single-bedroom units at a lower cost,” he said.

Midwood Report author and property expert Bill Morris said the trend to high-density high-rise developments would only increase.

“High-density (development) is a key part of the Queensland Government’s South-East Queensland Regional Plan,” said Mr Morris.

“I only see density increasing down the track.

“If you already have the services, it makes sense up until a point to keep developing in those areas.”

But Mr Morris said higher density developments did not necessarily mean a lower cost for the buyer.

“These developments are occurring in the inner city and the price of the apartments can still be quite high,” he said.?