CBRE

1. SUBURBVIEW
June 2008, South East Queensland
SURFERS PARADISE
Residential Suburb Overview
Surfers Paradise has been at the heart of major development of the Gold Coast throughout the past 30
years and while development has spread north and south, it remains the hub of activity.
With inauspicious beginnings as a place called
Elston, Surfers Paradise has continued to
flourish since the introduction of the Surfers
Paradise Hotel by Jim Cavill in 1925.
Occupying a relatively narrow stretch of land
across the Nerang River from Southport,
Surfers Paradise is home to some of the most
famous beaches in Australia.
Riverside subdivisions in 1949 brought a
number of restaurants, boutiques, specialist gift
shops, and a cosmopolitan population to the
area.
By 1960, central Surfers Paradise could boast its first high-rise apartment block, 'Kinkabool', and within
seven years, the now-familiar skyline of apartment buildings was visible from a distance.
Surfers Paradise population of 18,501 (2006 Census) consist of over one third of its residents
Generation X and Y’s (37%) being drawn to the suburb for the layback lifestyle while located close to
employment hubs. The population grows enormously during peak tourist seasons allowing the Gold
Coast tourism market to provide a dynamic employment base for current and potential residents.
Following the trend toward inner city living, the area has enjoyed a resurgence of interest and demand
for centrally located properties.
Attracting more than four million visitors each year, this world famous suburb is home to the world's
tallest residential tower Q1, an 80 level landmark reaching 322 metres in the sky.
With development sites rare and given the continuing demand for inner city living, increased interstate
migration and the continual upgrading of the Surfers Paradise retail precinct, the future of residential
investment in the area looks bright.
Source - REIA

2. June 2008, South East Queensland
Suburb Dwelling Type
Not surprisingly, apartments and units dominate
Surfers Paradise housing. Of the 12,472 occupied
Dwelling Type
private dwellings, over 82% are units and apartments.
The largest concentration of high-rise apartments
stretching along the world famous Surfers Paradise
beach ranging from older three storey walk up Seperate House
developments primarily built in the 1960/1970s to 80 10.8%
storey new residential towers. Edging over the
82.9%
Broadwater housing becomes more traditional in 6.3%
Unit/Apartment
Townhouse
Surfers Paradise, with large canal homes and
townhouse estates. As the population, increases in
Surfers Paradise and residential beach front
development sites become far and few between,
existing established complexes are likely to be Source : Australian Bureau of Statistics (Census 2006)/CBRE Research & Consulting
replaced with larger apartment towers.
Who lives in
Surfers Paradise?
Tenure Type
Most visitors to Surfers Paradise come for the relaxed
beach atmosphere, shopping and nightlife and may be Being Purchased
largely unaware of the 18,500 residents that call the
Fully Owned
area home. In the 2006 Census almost 50% of
11.4%
residents in Surfers Paradise had never been married 19.1%
with over 37% living in rented accommodation. A third Rented 37.2%
of residents reported to be paying a mortgage or
owning their homes outright, this is likely to increase as 32.4%
empty nester baby boomers seeking out the leisure
time and options offered by living close to the beach Other
move into Surfers Paradise.
Source : Australian Bureau of Statistics (Census 2006)/CBRE Research & Consulting
Surfers Paradise House Market
With a population of almost 600,000 and growing at around 3.2% per annum, the Gold Coast is seeing
changing demographics. Interstate migration is slowing and the area is beset by an aging (although affluent)
population. The Gold Coast house market was out-performed by Brisbane’s over the year, with falling sales
volumes accompanied by drops in capital growth rates. The median house price in Surfers Paradise was
$610,000, increasing only by 2.7% in the June 2008 quarter. The median house price in Southport was
$505,000, with a decrease of -0.39% recorded for the same period. Units on the Gold Coast achieved price
growth of 6.93% over the year to June 2008, with 2.26% of this occurring in the June quarter. This growth
resulted in a median unit price of $371,500 for the quarter. The number of house and unit sales have reduced
as buyers have adopted a “wait and see” approach with ample stock on the market.
Resi-SuburbView
2

3. June 2008, South East Queensland
Surfers Paradise Unit Market
Resulting from an increasing population and lack of investors on the Gold Coast, house and unit rents
continue to climb. The median rent for a three bedroom home on the Gold Coast ranged from $420 to $495
per week, recording increases of between $20 to $45 per week in the June 2008 quarter. Aided by healthy
rental increases, rental yields on the Gold Coast are on the rise sitting at over 4.25%. Unit rents increased a
further $20 per week during the June quarter, resulting in a median rent for a two bedroom unit of $370 per
week ($30 a week more than Brisbane units). Following continued rental increases, local Gold Coast agents
are reporting higher than normal increases in arrears as rental affordability deteriorates.
Surfers Paradise Top Five House Sales
June Quarter 2008
Admiralty Drive, Surfers Paradise - $4,820,000
Amalfi Drive, Surfers Paradise - $2,775,000
Admiralty Drive, Surfers Paradise - $2,700,000
Stanhill Drive, Surfers Paradise - $2,700,000
The Promenade, Surfers Paradise - $2,560,000
Surfers Paradise Top Five Unit Sales
June Quarter 2008
Surfers Paradise Boulevard, Surfers Paradise - $2,000,000
Stanhill Drive, Surfers Paradise - $1,450,000
Old Burleigh Road, Surfers Paradise - $1,450,000
First Avenue, Surfers Paradise - $1,385,000
Garfield Terrace, Surfers Paradise - $1,290,000
Residential Development
Supply Pipeline
Within the suburb of Surfers Paradise, there are
Surfers Paradise Residential Supply
1,705 proposed new residential units/apartments in
Pipeline
the supply pipeline. Across the 16 proposed
developments, the majority are high rise projects
Development Application 367
with an element of mixed use (commercial or retail).
From June 2007 to June 2008, nine projects have
Development Approval 846
development applications lodged, four have
development approval, two have tenders called or
Tendes Called/Contracts Issued 201
contracts issued, and one project is under
construction. Those projects that have not yet
Construction 291
commenced construction have scheduled
completion throughout 2008 to 2014. Due to the 0 200 400 600 800 1,000
increasing cost of construction and tighter lending Number of Units/Apartments
Source: Reed Construction Data (June 2008)
criteria, it is likely some of these proposed projects
will not be constructed with some deferred or
abandoned for various reasons.
Resi-SuburbView
3

4. June 2008, South East Queensland
Approved Residential Projects in Surfers Paradise (>100+ units)
Project Address No. of Stage Developer Estimated Project
Units Value
Soul 4-14 The Esplanade 291 Site Preparation in Juniper $400,000,000
Progress
Surfers Paradise 3197 Surfers 192 Development Raptis $50,000,000
Units Paradise Blvd Approval
Pacific Beach 36-44 Old Burleigh 308 Development - $200,000,000
Apartments Rd Approval
River Terrace Unit 2-20 River Tce & 42- 201 Tenders Called - $80,000,000
Tower 46 Enderley Ave
Iluka Mixed Use 3 Tricket St 351 Development Raptis $90,000,000
Development Approval
Total Units 1,343
Source – Cordell’s (June 2007 to June 2008)
What is happening at the Coal Face?
The Gold Coast residential market has slowed immensely in 2008 with overall values holding, given the imbalance
between supply and demand. Fewer buyers in the market and ample stock available are resulting in longer selling
periods.
CBRE Residential Valuer’s are seeing an increase in mortgagee in possession jobs within new residential
developments and some prestige localities, such as Hope Island and Sanctuary Cove.
Today’s Gold Coast buyers are qualified (finance approved), educated regarding the current market and looking
for a bargain with no sense of urgency.
Due to their affordable nature, properties priced under $450,000 are stable. However, prices at the southern end
of the Gold Coast have seen a 10% reduction in townhouse and unit markets.
The middle of the market, with properties priced $500,000 to $900,000, has slowed with a significant amount of
product available. Due to a reduced buyer pool and with vendors holding fast to asset values of 2007, properties
are sitting longer on the market.
Waterfront properties priced over $1 million offering views or located on the beachside of the Gold Coast Highway
remain active. Those in secondary locations and with no point of difference are struggling to maintain value with
little market interest. Resi-SuburbView
Toni McKnight
Senior Manager - Residential Research
CBRE Research & Consulting, Pacific Region 4
T 61 7 3833 9773 M 0432 571 724