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Melbourne-based developer Central Equity’s bold move to start construction of its $1 billion Palmera Residences development on the Gold Coast ahead of securing pre-sales has paid off after the company secured buyers for more than $400 million worth of apartments since May.
The 52-level tower at Northcliffe in Surfers Paradise is Central Equity's first project outside Melbourne and is located on a site the company has held for the past two decades.
Palmera Residences is the fourth concept planned by Central Equity since acquiring the Garfield terrace site in 2007, after the company abandoned its earlier proposals due to challenging market conditions.
Construction of Palmera, which comprises 347 apartments priced from $2.95 million to $8.95 million, is being undertaken by construction giant Multiplex.
Central Equity sees its decision in May to break ground without the pre-sale commitments as a major confidence boost for buyers.
"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of Palmera Residences,” says Central Equity director Karl Kutner.
"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex.
“Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."
Kutner says the sales performance also affirms a clear demand for luxury projects that offer certainty of delivery.
“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” he says.
Palmera apartments have been snapped up by a range of buyers from interstate and South-East Queensland.
"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast,” says Kutner.
"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations.”
The sales milestone comes after NAB provided funding for the project, extending a banking relationship with Central Equity that stretches back 37 years to the developer's first Melbourne tower in the late 1980s.
It also follows a stop-start history for the site that Central Equity has owned since 2007 including three prior proposals before Palmera.
Luxe Private Residences, The Luxe and the $500 million Pacific One all failed to proceed before Palmera was launched, with Pacific One scrapped as recently as 2022.
Over the past four decades, Central Equity has delivered more than 85 developments and 10,000 apartments with a combined end value of more than $8 billion, although most of that pipeline has been concentrated in Melbourne's inner suburbs.
Palmera Residences will feature resort-style amenities, including two swimming pools, and exclusive access for residents to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor barbecues and indoor and outdoor dining areas. Residents will also have access to a dedicated concierge.
Palmera is expected to be completed by mid-to-late 2029.
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