The Gold Coast knockdown hotspot where renovators are making bank

Reno-savvy investors are seizing opportunities in Gold Coast knockdown hotspots, capitalising on demand for quality turnkey homes in the midst of a turbulent construction climate.

Latest data shows Palm Beach maintains its status as the knockdown capital, though demolitions have fallen by more than a third in the last year.

Ray White’s analysis of ABS figures shows a drop from 55 to 35 homes bulldozered.

Statewide, Rocklea-Acacia Ridge (Brisbane South) and Goodna (Ispwich) were comparable, with Parrearra-Warana (Sunshine Coast) leading at 36 knockdowns.

The Gold Coast’s other knockdown hotspots were Broadbeach, Mermaid Waters, Burleigh Waters, Currumbin-Tugun, Labrador, Paradise Point-Hollywell, Mermaid Beach, Surfers Paradise- south, and Southport – south.

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143 Tahiti Ave, Palm Beach

The numbers did not account for major renovations where the original frame remained but reflected a shift due to escalating land values and building industry challenges, including material costs and labour delays.

Industry insiders attributed this year’s two-speed market to affluent buyers seeking high-quality new or renovated homes in prime locations, even as rising interest rates tempered growth in other sectors.

In Palm Beach, a luxury home with a sophisticated contemporary aesthetic and high-quality finishes, recently listed at $3.6m, exemplifies the trend.

Oliver and Megan Grant purchased the 562 sqm site at 143 Tahiti Ave in 2021 and transformed an existing hoarders’ house into a striking residence with sweeping curves, sharp lines and raw materials.

The Grants moved into Palm Beach eight years ago, since witnessing the gentrification of the area and growing demand for statement real estate.

“The land now is so desirable and valuable that if you are going to do a renovation you have to do it to the extent we have. If you do anything less, you are just not justifying the land value,” Mr Grant, director of Stones Throw Finance, said.

He engaged Tone Booth, of Nucii, for the project, which is marketed by Harcourts Coastal agent Joel Madam.

Among recent local sales, a mid-century-inspired new build on Parnki Pde was snapped up by an interstate family for $3.675m.

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29 Parnki Pde, Palm Beach

The luxury home was the work of Katie and Tristen Soineva, the husband-and-wife team behind SMUB design consultancy, who acquired the 569 sqm lot for $1.36m in April 2021.

“Mum-and-dad renovators can no longer do the quick cheap reno flip — you’d just get slaughtered by the market,” said marketing agent Josh Willatt, of McGrath Palm Beach.

“Buyers expect quality fixtures and fittings, and with construction costs as they are, they’d rather buy it all done.

“There’s a lot of money out there and people are willing to pay good money for good quality finished homes. Quality is in demand — you do it properly or not at all.”

On the acquisition side, Brisbane-based boutique developer Ben Bird has just settled on a 405 sqm block on Twenty Seventh Ave, secured for $1.2m.

While the street’s new builds have typically been duplexes, Mr Bird’s first Gold Coast venture will be a high-end freestanding home, designed to “appeal to an illustrious buyer who appreciates quality and is prepared to pay for it”, Mr Willatt said.

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This shack will be replaced by a high-spec residential home

Buyers’ agent Matt Srama said those succeeding in this market often had a background in property-related fields and treated their investments like a business.

Mr Srama said the key to profit was “making money on the way into the deal”, potentially by securing a property at below market value or off market.

He advised prioritising location by seeking sites close to the beach, schools or lifestyle amenities, while avoiding property located near busy roads.

Ray White data analyst William Clark linked knockdown activity to increases in higher density residential development.

But Mr Clark said a “sudden wave of knockdowns” did not necessarily equate to gentrification, with the quality of development playing a crucial role in house price growth.

“Large numbers of knockdowns in suburbs does not mean the suburb itself is becoming unaffordable or changing in any meaningful way.

“More often than not, gentrification is slower and more sustainable.”

Article source: Queensland Property Investor