Blog

Gold Coast Economy Still Looking Great

It’s great to see that there are some strong pockets of economic growth around Australia. One of the primary growth spots is our very own Gold Coast – showing a host of positive signs that the economy is in a state that bodes well for business now and in the future.

New property developments going strong

A range of current and planned new developments on the Gold Coast highlight just how popular the area is right now. The Gold Coast City Council recently disclosed that over $2.5 billion worth of development applications have so far been lodged under the Southport Priority Development Area scheme alone. But it’s just not Southport that’s looking good when it comes to new developments.

“For 2014/15, we have approved 3944 development applications compared with 3178 at the same time last year. In 2011/12, there were 2448 development applications approved (for the full 12 months).”

Gold Coast City Council Mayor Tom Tate

There are also:

  • $1 billion worth of developments underway at Robina.
  • $900 million of developments at a single site – Jewel – at Surfers Paradise.
  • $7.5 billion Integrated Resort Development at Broadwater.
  • $1 billion of commercial development at Yatala.
  • $1 billion of development at Chindera.
  • Over $13.7 billion in major infrastructure projects across the Gold Coast.

International investment interest

Over the last couple of years, we’ve seen a number of big announcements when it comes to international investment on the Gold Coast. Here are just a few of them:

  • Aquis Entertainment's acquisition of the Sheraton Mirage on Main Beach was the largest deal in Queenslands leisure industry, sold for $160 million. The Hong Kong developers have stated plans to develop a resort precinct on the property porn.
  • ASF Consortium's plans to deliver an Integrated Resort Development at Broadwater.
  • com’s announcement that intent to purchase Gold Coast real estate amongst Chinese investors was up 17% from the same period in 2014.
  • The KKR/Abacus purchase of Oasis Shopping Centre in Broadbeach for $103 million.

Clearly, international investors see a lot of potential in the Gold Coast.

Small-to-medium businesses flourishing

The Gold Coast Council has put in place a range of measures that will encourage the growth of small-to-medium businesses in the area. The Southport Priority Development Area scheme, for example, is forecast to more than double the population of the city in the next twenty years. That’s a lot of new clients! And the growth in the SMB sector isn’t just a pile of forecasts. Have a look at these charts of the number of businesses in the Gold Coast from 2013 to 2014:

Change in registered Gold Coast businesses by industry, 1 - 4 employees

Change in registered Gold Coast businesses by industry, 5-19 employees

Change in registered Gold Coast businesses by industry, 20-199 employees

Cameron Wilson, Gold Coast Director in Charge for Colliers International, told the Courier Mail, “Current office vacancy in Southport is assessed at 13.8 per cent. Five years ago this figure was close to 22 per cent.”

Population and job numbers increasing

The population of the Gold Coast area has been increasing steadily over the last decade, with more and more people appreciating the weather, culture, and amenities that the Gold Coast can offer.

Estimated Residential Population

Chart derived from data made available by the Gold Coast City Council in its population fact sheets.

Some suburbs are expected to grow more rapidly, however – the Gold Coast City Council has forecast that the population of Southport will more than double over the next 20 years, while the number of jobs will rise from 25,000 to over 60,000.

Summary

We think it’s clear that the Gold Coast economy is going strong, and will be for the foreseeable future. Property development, infrastructure, investment and population growth are all key indicators that it’s a great place to invest in the future.

Hopefully you found this blog article useful. Get all our FREE tax accounting and advisory news,
tips and information by subscribing to our monthly newsletter.

Feel free to contact us for a complimentary consultation. Let us get you on TRAK to success