More than $3 billion in the development pipeline for well-established western Gold Coast suburbs
March 14, 2012
| Development Sites
Several large-scale projects in the Nerang area have been completed over the past year, leading to a fall in the number of projects under construction, according to new research from Colliers International.
The two largest projects that were completed in the area, which covers suburbs including Nerang, Gilston, Carrara, Merrimac, Mudgeeraba and Worongary, were the $395 million Hinze Dam upgrade and the $200 million Carrara Stadium upgrade.
Despite the completion of these two major projects, there is still some $1.75 billion worth of developments under construction in the Nerang area and another $1.5 billion planned, according to the latest Nerang development map and report, compiled by Lynda Campbell, Colliers International Gold Coast residential research manager.
In the past year six new projects worth a total of $445.8 million have come onto the radar. The biggest is a $307 million residential project on Gooding Drive in Carrara of up to 1000 apartments aimed at the retirement market planned by JLF Corporation. This is one of only two retirement projects in the Nerang area, with the other being a $10 million development at Macadie Way in Merrimac.
In terms of dollar value, mixed-use developments make up the largest share ($1.5 billion) of projects in the pipeline, but this is spread across only two developments – Emerald Lakes, a $1 billion master planned community that has now been underway for a decade; and the $500 million Pacific View Estate earmarked for a site near the M1 at Worongary that is expected to house 3500 dwellings.
Emerald Lakes is the biggest project currently under construction and the Pacific View Estate, which has been planned for some time and was given ‘major project’ status by the State Government at the end of February, has the potential to be the biggest residential project to be launched since the economic downturn.
Infrastructure makes up the second largest share of development in the pipeline in the Nerang area, with $584.9 million spread across 11 projects. The majority of this is due to ongoing work on the M1, said Ms Campbell.
“Currently in the Nerang area there is $158 million being spent on interchange upgrades between Nerang and Worongary in anticipation of the widening to six lanes of the M1 from Nerang to Coolangatta at a later stage,” she said.
“The next largest infrastructure project is a powerline project from Mudgeeraba to Tugun, which is still in the planning stages – community protest has meant Energex have now changed plans from overhead to underground lines.”
Of the six new projects added to the Nerang area development pipeline over the past 12 months, half are infrastructure related. They include an upgrade to Bonogin Road at Bonogin, an upgrade to Springbrook Road at Mudgeeraba and an expansion of Emmanuel College in Carrara.
Also in the development pipeline in the Nerang area is $335.9 million worth of residential projects, $220 million worth of apartment projects and $292 million in commercial projects.
Development activity in Nerang peaked at $4.493 billion in 2009 and has since dropped back to its current level of $3.25 billion, but Ms Campbell said development in the area had been fairly stable over the past few years.
“Last year our research found there was $3.81 billion in development projects either planned or underway in the Nerang region, which was around the same level as the year before,” she said.
“While there has been a slight drop this year, it’s really only very minimal, and the amount of development going on in the area is significant given that these are some of the most established suburbs on the Gold Coast.”
Stewart Gilchrist, Colliers International Gold Coast director said development activity in the Nerang area was concentrated on Carrara, a suburb situated on the Nerang River.
“The Gold Coast Stadium, which opened last year and is home to the new Gold Coast Suns Football Club, put Carrara on the map and its profile has been improving ever since, with more development activity focused on the suburb,” he said.
“There are eight projects either under construction or planned for Carrara, including the $1 billion Emerald Lakes project and a $13 upgrade of Nerang-Broadbeach Road through the suburb that will improve access to and from the area and will be particularly beneficial when the Gold Coast Stadium hosts Commonwealth Games events in 2018.”
Back to listing