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Gold Coast Perpsective from Mr Harry Triguboff
ABOUT a month ago, the Gold Coast Bulletin reported the 'dead' state of the Gold Coast market had sapped my confidence, and maybe it was true -- for the very short term.
But I have been thinking a lot about the Coast, and its future, and I feel my confidence returning when I think about the longer-term prospects for the Gold Coast.
The fact is today apartments are cheaper on the Gold Coast than almost everywhere else, certainly Sydney, Melbourne and Brisbane, and they cannot be produced at the current prices.
I think that now is the time to buy, and build, and this is what we are doing, and I would encourage others to do the same -- or they may miss out.
I have been coming to the Coast for work and play for nearly four decades.
Over that time of course we have seen many booms and busts, and we have seen many people predict huge futures and catastrophic failures, none of which have eventuated.
What has happened though, clearly, is a strong, steady and inexorable growth towards a modern, diverse and increasingly sustainable community and economy.
I was excited by my most recent visit to the Gold Coast to see the new international airport, with more parking and more planes.
I believe the coming wave of Chinese tourists will dwarf anything we saw from Japan in the 1980s.
I was born in China, and grew up there, and the one thing I know for sure is that the Chinese love warm weather and clean air. The Gold Coast has these things in abundance, and only a few hours away.
Already China is the third-largest market for Gold Coast tourism with more than 100,000 visitors coming in the past year (with no direct flights).
I read with interest that China Southern Airlines will soon be flying directly between Brisbane and Guangzhou, and it is only a matter of time before somebody works out that a direct flight between the Chinese mainland cities and the Gold Coast will reap huge rewards.
The other huge change over the past few decades has been the tremendous growth in the 'knowledge' sector on the Gold Coast, particularly in the fantastic universities and hospitals.
The Gold Coast now has four excellent universities, including Griffith University (of which I am proud to be a sponsor).
Bond University manages to produce its graduates in record time because they are a modern university where students study all year long and don't take three-month breaks at the end of every year.
There is Central Queensland University, which is not far from our Brighton on Broadwater development at Southport, and Southern Cross University opened its Beachside campus on Gold Coast Airport land this year.
The huge new hospitals in Robina and Southport (and a medical school) are ensuring that the next generation of smart kids don't have to run away to Brisbane or Sydney to practise medicine, but instead can stay local, and provide the growing population with the medical services needed.
The Gold Coast University Hospital under construction in Southport is part of the wider Gold Coast Health and Knowledge Precinct, which includes the Griffith University campus.
The $1.8 billion hospital project is probably the largest construction project in Australia at the moment.
I am told by Gold Coast City Councillor Dawn Crichlow that associated works will include the development of a private hospital and a range of accommodation for knowledge-based and ancillary health businesses.
Approximately $5 billion of capital works and infrastructure investment is expected in this precinct (and of course much more if the bid to host the Commonwealth Games in 2018 is successful).
The maturity and resilience of the Gold Coast has also been recognised by all of the major national football codes, with the rugby league's Titans, soccer's United and now the Suns in the AFL.
The Gold Coast stadium is being developed for the Gold Coast Suns, on the site of the old Carrara stadium, at a cost of $144 million.
These are all strong endorsements of the future growth of the Coast and its increasingly important place in the national economy.
I believe the Commonwealth Games bid is exactly the kind of large-scale event the Gold Coast needs -- and can deliver with great style. It will trigger a renewed wave of confidence and investment in Gold Coast.
Cultural development has not been ignored, with plans for the development of a major cultural centre on the Evandale site of the council administration centre, expected to require more than $200 million investment.
And stage two of the Broadwater Parklands is under way, creating a magnificent community and cultural parkland along the historic shores of the Southport Broadwater.
In terms of the future infrastructure development, I only wish that local government in other parts of Australia was as on the ball as that in the Gold Coast.
The extension of the heavy rail from Brisbane, and its connection with the light rail loop is fantastic and will be a great boon for the Coast.
I applaud this development and encourage all Coast dwellers to use the system so that it will be successful and profitable, and can be extended further -- eventually past Broadbeach and on to the airport.
The Gold Coast light rail project is approximately $1 billion, and will transform the city with a modern high-frequency, accessible, integrated and reliable transport system. The project will generate jobs and development along the transit corridor.
Demographics are also in the Gold Coast's favour.
Earlier waves of interstate migrants in their retirement years have been replaced by international and domestic migrants with a younger age profile than the overall population.
The Gold Coast has experienced a baby boom and has large number of young families.
As international education has increased rapidly in recent years, many graduates stay to forge a life and make a career here.
Gold Coast is 'growing up' as a city. Its population is estimated at 530,000 in mid 2010. Together with the adjacent Tweed Coast, the regional population is approximately 620,000.
So whereas in the past, the local economy was based quite narrowly on tourism and property development, the Gold Coast has really matured.
And because of all of this, we at Meriton have decided to increase the number of serviced apartments at our Broadbeach site.
We are also continuing to sell out the apartments in our Portia development at Southport, and we will also continue with the current construction at Regatta also in Southport.
We are also preparing plans for submission to council for some 550 apartments in the final tower at Southport.
From our experience, Brisbane was in worse shape than the Gold Coast and we are now seeing economic activity and -- more importantly from our perspective -- apartment prices, picking up.
Already Australia's sixth-largest city, Gold Coast is blessed with a magnificent natural environment and enviable lifestyle.
Recent housing price increases in Sydney and Melbourne have emphasised again its comparative affordability, and value for money.
The world is waking up to the fact that Southeast Queensland is great place to work, and play, and invest.
So it is not all doom and gloom, the Gold Coast will rise again, and Meriton will do its bit to ensure that this happens.
Harry Triguboff AO, founder and managing director, Meriton Apartments Pty Limited
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