Despite the number of developments in the pipeline for north Gold Coast’s Coomera remaining steady, the amount of funding in the pipeline has dipped slightly due to smaller projects.
Spending is down 15% compared to the previous year, but planned projects or those underway in the area – including Upper Coomera, Guanaba, Maudsland, Oxenford and Wongawallan – have remained virtually unchanged with 63 this year and 64 developments last year.
Colliers International Gold Coast director in charge Stewart Gilchrist says 17 projects have been added to the development pipeline over the past year but have all been of smaller scale to those previously undertaken in the area.
“Gone are the days of the large-scale masterplanned communities – for now.
“Confidence in the Gold Coast market has waned a little over the past few years, and lenders have been less willing to provide finance for projects in the area.
“However, this is quite clearly starting to change now. In fact, some sectors of the Gold Coast market are really starting to heat up, and it won’t be long before those big projects are back on the map again.
“Development activity in the Coomera area will of course also increase significantly when the Coomera Town Centre becomes a certainty, and it is well on the way to this now,” says Gilchrist.
The two largest projects include the $70 million Coomera Palms residential project and the $55 million Spiritus Coomera retirement project.
The residential sector accounts for the largest percentage of the pipeline at $2.44 billion, followed by the mixed-use sector at $750 million.
Half of the developments in the pipeline – 25 projects worth $2.25 billion – are currently under construction.
Colliers International Gold Coast research manager Lynda Camberwell says as one of Gold Coasts biggest growth areas, Coomera needed a continuing strong development pipeline.
“According to the latest statistics from the Australian Bureau of Statistics, the area has experienced some of the highest growth of any area on the Gold Coast.
“The suburb of Coomera itself had a population growth rate of 9.5% over the 2011/12 financial year, which was the second highest in the region.
“Going forward Coomera’s population growth is projected to increase by 8% per annum between 2011 and 2031, far greater than the 1.9% expected for the Gold Coast overall.”
Camberwell says the drop in spending could be attributed to the fact that some projects were either downgraded in terms of cost or are no longer on the radar.
“Around half of the decrease in spending in the area was due to projects that seem to have either been put on the backburner or completed.