Gold Coast’s ‘bright future’ challenged ‘astronomical costs’ and stalled developments

The Gold Coast may be an example of having too much of a good thing.

Beyond the beautiful beaches and idyllic weather, $20 billion is being spent on infrastructure ahead of the 2032 Olympics and there is more in the pipeline.

An analysis by property firm Colliers paints an “enormously bright future” for the Gold Coast’s $39 billion economy, with healthy population growth, infrastructure investment and a rebounding tourism sector.

But for every silver lining, there is a dark cloud.

The population problem

The Gold Coast’s population is forecast to grow by 145,000 before the 2032 Olympics, 77 per cent of which will be through domestic migration.

According to the Regional Australia Institute, the Gold Coast remains the most popular destination for people relocating from capital cities.

The housing market has been surging for two years, albeit with signs of cooling off.

Rental vacancy rates sit at about 0.4 per cent, well below a balanced market of 3 per cent.

Median house prices have risen by 16.8 per cent and 21.8 per cent over the past two years, respectively, to $940,000.

But Colliers Gold Coast director Steven King says “astronomical rises in construction costs” have plagued the building industry, forcing several major firms into liquidation.

“If costs continue to rise there may be a stall in sites being delivered as project viability is impacted and therefore further fuelling the supply and demand imbalance,” a Colliers report states.

Mr King said people could not be stopped from moving to the region, so the city needed to find a way to house an additional 14,500 people every year.

 

Article source: www.abc.net.au