More tourists on the Gold Coast helps high-end retail flourish
A boost in the number of Asian tourists arriving on the Gold Coast has had a direct impact on the area’s retail leasing market, with upscale brands taking up high-exposure spaces, according to Colliers International.
While signs of Brisbane’s high-end retail resurgence have been apparent for some time, the Gold Coast’s newfound economic maturity is making its presence felt on the streets of Surfers Paradise – with luxury brands especially appealing to China’s booming middle class.
“Strong tourism numbers, the strongest they’ve been, particularly from a strong Asian market, has helped high-end retail. That’s just evident from walking through the streets,” Helen Swanson, Research Manager at Colliers International said.
“For the Gold Coast market and the Brisbane CBD market at the moment there is a positive trend for the high-street leasing market.”
Major infrastructure projects including the Gold Coast light rail line and the Gold Coast health and knowledge precinct, as well as infrastructure being readied for the 2018 Commonwealth Games, were contributing to the Gold Coast’s transition to a mature city economy, Ms Swanson said.
“In terms of the market life cycle the Gold Coast is growing up now, it’s not just a tourist town anymore but a full-scale economy,” she said.
Tourism Research Australia reported that more than 1 million international travellers visited the Gold Coast in the 12 months to the end of September 2016, a 16.2 per cent increase on the previous year.
China is now the leader in international arrivals to the Gold Coast, displacing New Zealand, and accounting for 295,000 visitors, up 38.4 per cent on the previous year.
Away from the skyscrapers and tourist hot spots, a growing population is leading to strong leasing activity in the Gold Coast’s north, according to Bryan Wiggill, large format retail executive at Colliers International.
Mr Wiggill said that the establishment of the Coomera town centre, 20 years in the making and including a Westfield complex, is driving leasing activity in the area.
“Westfield commencing construction in Coomera town centre, that’s making waves on the Gold Coast,” Mr Wiggill said.
When built, the billion-dollar development on Foxwell Road will be the largest shopping precinct in the city’s north.
The first stage is expected to be launched in 2018.
Companies showing interest in taking up space in the area have included food operators, national stores, national electronics retailers, and gym chains, Mr Wiggill said.
The realisation of the area as one of the fastest growing in the country is leading to a high-level of “genuine inquiry”, he said.
The populations of Coomera and Upper Coomera-Willow Vale were up 6.7 per cent and 5.1 per cent respectively between 2014 and 2015.
The fastest growing region in Queensland was the Gold Coast suburb of Pimpama, which increased 20 per cent, putting it also among the fastest-growing regions in the country.
Overall, KPMG estimates that the Gold Coast population will hit 1.2 million by 2050.
