Potential new investment in Southport reaches $2.5 billion

31 July 2015

Investment in the Gold Coast’s CBD has reached new heights, with the value of potential developments lodged under the Priority Development Area (PDA) scheme now soaring to more than $2.5 billion.    

This figure* includes the land value, cost of construction and all normal development costs for each development. A total of 47 development applications for Southport have been lodged since the PDA was declared, with approximately 6,700 apartments approved or being assessed to date.

Mayor Tom Tate said the declaration of Southport as the CBD would drive the population up, with its current population of 30,145 expected to more than double by 2036.

“The future of Southport as the city’s business hub is fast becoming evident in its job and commercial floor space figures.

“Southport already has the highest number of jobs in the city - 25,000 jobs – with this figure expected to grow to 60,000 by 2036. It also has the highest amount of commercial floor space in the city, with more than 150,000 square metres over 80 buildings,” he said.

“Our new CBD is clearly well on the way to becoming the hub for education, health, legal firms and business, along with valuable community assets like the Broadwater Parklands. It is now the home of the monthly Chinatown Street Markets which are proving very popular. 

“All eyes will be on Southport when it hosts the swimming, diving, marathon and triathlon events for the Gold Coast 2018 Commonwealth Games™.” 

Cr Tate said the new level of confidence reflected among the city’s developers was evident city wide.

“At the moment we have around 18 cranes in the sky – three years ago there was just one; and development applications as a whole are on the up. 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).  

“I’m confident there will be more investors hoping to capitalise on the opportunities ahead of us which means more local jobs.”

Construction company Rawcorp recently completed the Rise apartments in Southport and is currently building Ascent. Both are 30 unit, eight-level complexes in the garden precinct of the Southport PDA, close to the light rail.

Rawcorp Director Anthony Rigby said employment of construction workers had risen in the past two years and that these two projects engaged more than 200 workers from start to finish.

“The labour market for skilled workers is a far cry from the situation two to three years ago,” Mr Rigby said.

“We’ve got plenty of opportunities to offer tradies, whereas a few years back there was no work on the Gold Coast.”

SOUTHPORT FACTS

 - The $5 billion investment in Southport includes:

  • $1.7 billion light rail  
  • $41 million Gold Coast Aquatic Centre
  • $70 million Broadwater Parklands  with $10.5 million Stage Three now under construction
  • $8 million Chinatown – including investment from partnership cities
  • $15 million Australia Fair West redevelopment (Metro) due to open August
  • $1.5 million Nerang Street Mall upgrade due in 2017; and
  • $7 million TAFE redevelopment.  

- The Gold Coast economy is worth $25 billion.

Yatala contributes $2 billion;

Southport - $1.2 billion

Robina - $873million

Bundall - $663million

Surfers Paradise - $558million

Broadbeach - $486million

  • Southport population – 30,145 - will more than double by 2036 to 68,000.
  • 50 per cent of residents have at least one parent born overseas

*This figure excludes any major development approvals before the PDA was declared, including Meriton’s latest tower, Hoo Bee and Sanbano Towers. It is calculated using a 25 per cent developer’s profit margin to bring the anticipated Gross Revenue back to a development cost.

 

Potential new investment in Southport reaches $2.5 billion  photo