Big-scale projects tipped to perform
LARGE-scale masterplanned developments completed over the last few years will be some of the best performers of the Gold Coast property market in years to come, project marketer Julian Sutherland says.
The head of the Ray White Surfers Paradise Group’s project marketing division said large-scale projects would not be seen again for many years.
‘‘We think this will add inherent value to masterplanned communities or large scale projects because, in essence, they will be difficult to repeat,’’ he said.
‘‘Banks are not going to take the risks they did with projects of such magnitude and I believe will sup- port the notion of more boutique, smaller scale developments.’’
Mr Sutherland said despite the difficult conditions some of the best product on the market was in large-scale developments and masterplanned communities such as Salacia Waters at Paradise Point and Sanctuary Cove.
‘These projects are truly once in a generation projects which are world class and as such will be in high demand when market con- ditions improve,’’ he said.
‘‘Stock levels have been slowly eroding in these various sectors. The uniqueness of large-scale projects and the likelihoodsuch grandiose projects will not be built in the short term means they will at least retain their value and will more likely outperform other sectors.’’
Mr Sutherland said Sanctuary Cove was a glowing example of a community maintaining its intrin- sic value and outperforming the general market.
‘‘Sanctuary Cove is a good com- parison because it is a community that is unrepeatable,’’ he said.
‘‘As such it has had very strong demand throughout its life cycle, despite the ups and downs of the property market over the last 20 years, and therefore capital growth has been very solid.
‘‘We certainly believe these large scale projects, because they are world class and so unique, will show tremendous growth in future years because they will be difficult to emulate.
‘‘Many of these projects are now offering apartments and residen- tial product at below future replacement cost.’’