HARRY Triguboff has hit the sweet spot in the Gold Coast property market, scoring a solid run of sales at his Sundale development at Southport and prompting him to lay plans for another supertower on the Gold Coast, this time at Broadbeach.
However, the billionaire developer has declined to air his views on whether the Gold Coast market is poised to be inundated with development stock as the apartment market recovery takes shape.
While Colliers International is calling a “critical undersupply” of new beachside apartments on the Gold Coast, with stock levels at a 30-year low, developers are lining up to deliver thousands of new apartments to the market.
Latest estimates reveal that approval is being sought or has been granted for about 5000 apartments in the Southport Priority Development area alone in the past year.
Triguboff’s Meriton Apartments is taking advantage of the momentum by lodging a development application for a 60-level apartment tower to be constructed in Surf Parade, alongside the company’s existing Pegasus development at Broadbeach.
If it proceeds it will be the tallest high rise development for the Gold Coast since the 77-level Soul tower was completed in 2011.
Meriton’s latest project will comprise 342 units, with more than half to be one-bedroom units that will target the holiday market.
Triguboff has declined to comment further on the latest project, which comes on the heels of construction starting this year on the 55-level Sundale tower at Brighton on Broadwater.
However, a Meriton Apartments spokesman says the project is aimed at capitalising on what Triguboff sees as a booming tourism market on the Gold Coast.
“Our serviced apartment business is doing very well, and we foresee even greater demand particularly if the airport is upgraded and a cruise ship terminal built,” the spokesman says.
Triguboff plans to bring the latest development to the market once he has completed Sundale, which is the last stage of his Brighton on Broadwater project.
Triguboff has had a strong sales run at Sundale where he is releasing apartments in small parcels. The Meriton spokesman says the first releases of 20 and 30 apartments respectively have sold out, as has a more recent release of 25 apartments.
The self-funded Triguboff times his releases to meet market demand and often reserves stock in projects for his serviced apartments business.
Sundale is expected to be completed in 2016, but a start date for the Broadbeach development has not been determined.
Sundale is the largest high rise project under way on the Gold Coast and its development has been sweetly timed by Triguboff who held off on construction for at least two years during the market downturn.
Colliers’ director of residential projects Tony Holland says despite new projects coming to the market, the current undersupply of beachside apartments in particular will put pressure on prices.
He says new development announced for Broadbeach and Surfers Paradise “will not be enough to correct the imbalance between supply and growing demand along the coastal strip”.
"Booming real estate markets in Sydney, Melbourne and Brisbane have left the Gold Coast as the most undervalued property market on the east coast of Australia, however the decline in stocks of new beachside apartments has begun to put upward pressure on values and pricing.
"Approximately 30 apartments remain on the market at Synergy Apartments Broadbeach, Rhapsody at Main Beach is attracting strong demand, and at the top end you've got Sanbano at Coolangatta, where only a handful of luxury apartments remain on the market.”
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