Gold Coast’s beachfront development market soars

The latest Colliers Apartment Market Report has revealed a surge in demand for premium beachfront residential development opportunities across the Gold Coast, with several transactions already exceeding $30 million in 2024. This upward trajectory reinforces the region’s status as a hotspot for A-grade sites, as developers and investors gravitate toward prime locations that promise strong returns despite wider economic uncertainties.

“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. 

“In-house construction teams offer significant benefits to consumers by ensuring greater consistency and quality. With direct control over every aspect of the build, we uphold rigorous standards, meet deadlines, and quickly resolve issues, providing buyers with a predictable and trustworthy home-buying experience,” said Tye Alroe, managing director of Alroe.

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."

(Background header image: Lune, one of Alroe's beachfront projects)