Golden future of the coast

Golden future of the coast

When Australia’s Gold Coast was voted one of the top three places in the world to buy a second home in by the well-respected Knight Frank annual global The Wealth Report 2016, many onlookers were amazed. How could that strip of ritz and glitz along 57 kilometres of Queensland coastline possibly be in the same international league as perennial favourites the Cote d’Azur in the south of France, and Spain’s Ibiza?

But those in close touch with the property market there weren’t in the least perplexed.

Knight Frank director of residential research Australia Michelle Ciesielski points to the the arrival of the Commonwealth Games in 2018 as having kick-started investment there, together with the new light rail system and a planned $200 million airport expansion, low prices compared with Sydney and Melbourne, and strong population and tourism growth.

“Many high-net-worth individuals (HNWIs) hold positions that require travel around the world, across many time zones,” she says. “To have the ability to check in when a spare window is created in their calendar is a huge appeal and it’s certainly a bonus if they can see some upside in the capital value of their asset over the holding period.

“A lifestyle property on the Gold Coast also offers the perfect setting for semi-retirement or those who don’t necessarily need to be in the office full time. There are more and more people adopting the fly-in, fly-out approach whilst still watching the capital value of the family home appreciate in the capital cities of Sydney, Melbourne and Brisbane.”

Bernard Salt predicts in the KPMG report: Beyond the Horizon: Regional Development Australian Gold Coast Inc. that, by the middle of this century, the Gold Coast will have 1.2 million residents, “but it will also be a city of truly metropolitan scale”.

The weaker Australian dollar will help bolster tourism, and overseas property buying in Australia’s sixth-largest city, and another huge boost will come from the light rail extension to the heavy rail, linking the Gold Coast with Brisbane, as well as the $345 million make-over of Jupiters Hotel and Casino – and plans for a new casino – and the $670 million investment in the Pacific Fair shopping centre.

A further attraction is the presence of some truly exceptional homes on the beachfront all along the Gold Coast. Arguably Queensland’s best, Tidemark, the 30-room-plus mansion on Mermaid Beach that’s our cover property, is now up for sale for $29.5 million.

“And it should be priced significantly higher,” says Michael Kollosche, of Kollosche Prestige Agents. “The land alone is valued at $16 million-$20 million and the house’s insurance replacement value is $20 million.”

Domain Group figures certainly show that house prices on the Gold Coast are extremely competitive, with its median only just more than half of Sydney’s. Last year, that rose 5.8 per cent, however, only marginally behind Sydney’s 6.9 per cent, but with property earning better gross rental yields, at 4.4 per cent against Sydney’s 4.1 per cent.

“Over the last 14 months, we’ve started promoting properties on the Gold Coast to our buyers because we’re seeing massive investment in infrastructure and we’re now expecting very strong growth,” says Marwan Rahme, managing director of the finance, wealth advisory, property and capital group of companies, Kanebridge. “It’s a very beautiful area, with some stunning properties.”

With both construction and land costs significantly lower than in Sydney and Melbourne, prestige home owners and buyers can get significantly more for their buck. As a result interest is growing exponentially from interstate in what’s been named the fastest-growing major non-capital city in the country by property marketers CBRE.

Two years ago, 10 per cent of inquiries for properties on the Gold Coast were from the southern states, says Gold Coast director Nicholas Clydesdale. “Now it’s over 40 per cent and it’s growing all the time.”

What the experts say

“It’s certainly a bonus if [HNWIs] can see some upside in the capital value of their asset over the holding period.” – Michelle Ciesielski, Knight Frank

What’s on trend

By the middle of this century, the Gold Coast … will “be a city of truly metropolitan scale”. – Bernard Salt. KPMG 

What to look for

“We’re now expecting very strong growth.” – Marwan Rahme, Kanebridge

Feature property

Mermaid Beach 

45-51 Albatross Avenue, $29.5 million

On more than 2800sqm of prime land fronting the ocean, Tidemark is billed as Australia’s best beachfront home. Now being sold by original owner Scott Perrin, the former Billabong director-turned-racing.com CEO, the resort-style house has more than 30 rooms, including six bedrooms each with their own en suites, as well as a theatre, steam room, sauna, spa, wine cellar and 11-car garage.  “A house nearby, at 150 Hedges Avenue, sold for $13,250,000, and this is five times the land size, three times the house size and very similar high quality,” says agent Michael Kollosche.

Award-winning architect Bayden Goddard of BGD says the owner’s brief was to create an exquisitely detailed bespoke estate that utilised quality products and materials in a timeless manor. “It’s a residence that deserves to be mentioned alongside the best in the world,” Goddard says.A beachfront pavilion, with a teppanyaki grill, overlooks the pool and there’s an outdoor entertaining area with lawns, fringed by frangipani trees, and a children’s play area. It’s a short walk to surf clubs, cafes, restaurants and shops, and just 20 minutes to the airport.

Private treaty
Michael Kollosche,Kollosche Prestige Agents  04111 888 15 
www.domain.com.au/4218-2012750398

Isle of Capri

41 The Promenade, more than $8 million.

With a 36-metre frontage to the sea, this seven-bedroom, five-bathroom marble-and-stone mansion has panoramic views from the Main Beach skyline to Surfers Paradise and all the way to Broadbeach. It has a poolside entertaining terrace, indoor pool, gym, internal glass lift and cinema room – perfect for when Dwayne “The Rock” Johnson stayed two years ago while filming his movie Andreas on the Gold Coast.

“There’s been a shortage of top-quality homes on the market, and this is one of the better ones on the coast,” says agent Duncan Longmore. The house also has a boardroom, fireplace and a four-car garage.

Private treaty 
Duncan Longmore, McGrath Estate Agents Broadbeach 0419 611 792
www.domain.com.au/4217-2012670084

Surfers Paradise 

6402/ 4 The Esplanade Boulevard, $6 million.

There’ll never be an apartment like this 64th-level sub-penthouse, either for its size – at 430sqm – or its 270-degree uninterrupted views of the coastline and ocean, believes agent Luke Vaughan. “This is unique, absolutely impossible ever to replicate,” he says. “You simply couldn’t ever build something like this again for anything like $6 million.” The four-bedroom, three-bathroom apartment is open plan with combined living and dining areas, and a massive balcony along the full length of the home. It includes a wine cellar, contemporary kitchen with top European appliances, airconditioning and a full security system, as well as parking for two cars.    

Private treaty
Luke Vaughan Crown Realty International 0438 151 988
www.domain.com.au/4217-2012678320

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