This Week in Real Estate – 14th September 2023
Coast Super Tower Plans
Plans have been revealed for twin super towers on a Surfers Paradise beachfront site.
The Gold Coast City Council planning committee has given the green light to the project byhigh rise developer Harry Triguboff’s Meriton. The project, to be known as Iconica, will feature two towers, a 78-storey north tower and 53-storey south tower. It will be built on a 4413 sqm site on The Esplanade and is expected tobe worth $1 billion once complete.
Iconica will be Meriton’s 20th high-rise development on the Gold Coast. Triguboff says the towers, which will be developed in four stages, will contain almost 630 units and he expects to start work soon.
Council officers say the project will make a significant contribution to the emerging and aspirational character of Surfers Paradise.
“The development will contribute to the urban renewal and revitalisation of the area,” theapproval says.
The project will include a childcare centre and each tower will have a rooftop skygarden.
Quote Of The Week
“We anticipate that rents will keep climbing in the months ahead and there is a real possibility that vacancy rates fall even further.”
PropTrack, senior economist Anne Flaherty
September 16, 2023
Rents To Keep Rising
Rents are tipped to keep rising, as vacancy rates keep dropping. PropTrack data shows nationally, vacancy rates hit a record low in August of 1.1%. The number of vacant rental propertiesis now 54% lower than it was at the start of the pandemic.
PropTrack, senior economist Anne Flaherty, says vacancyrates continue to drop because investors are leaving themarket and fewer new homes are entering the market, at atime when the population is rising.
The result is rising rents with PropTrack predicting further increases to come. Australian Bureau of Statistics figures show rents grew 7.6% inthe 12 months to July, compared to CPI growth of 4.9%. “We anticipate that rents will keep climbing in the months ahead and there is a real possibility that vacancy rates falleven further,” Flaherty says.
Vacancy rates in Sydney fell to 1.26%, Melbourne is 1.19%and Brisbane, 0.84%. Adelaide and Perth are Australia’s tightest markets with vacancies below 0.7%.
Code Changes Push Up Prices
New national home building codes are tipped to drive up the price of an average home by $30,000.
Master Builders Queensland chief executive Paul Bidwell saysthe changes will be introduced from October 1 in Queensland,although other states have delayed their introduction. The changes are designed to ensure more livable housing and energy efficiency. Bidwell says the increases come on the back of a 42%increase in the cost to build a new home in the past three years .About 1,000 builders have signed a petition opposing the reforms. Bidwell says Queensland needs 48,000 homes a year over the next five years to meet the national housing target but there are only 36,000 dwellings forecast to be built in FY2024.
“We have supported inclusive, sustainable and affordable housing and been in discussions with government ands take holders for years – however, in the face of a housing crisis and rising costs, do not believe now is the right time to introduce these changes.”