Mermaid Beach: the Gold Coast suburb undergoing a huge transformation

If you’re a rich-lister with money to burn on an exclusive and palatial oceanfront property, Mermaid Beach is likely to be on your hit list.

Home to some of Australia’s most incredible beach homes, it holds the record for the two most expensive house sales in Queensland: the first, a $27 million Hedges Avenue mansion that was sold uncompleted in 2008; and second, the $25 million Albatross Avenue masterpiece owned by former Billabong boss Scott Perrin, which sold in October last year.

Beloved by locals for its lack of high-rise apartments and close-knit community, Mermaid Beach’s popularity is reflected in its property prices – CoreLogic figures put its growth last year at a whopping 33.5 per cent. Now with a median house price of $1.395 million, it’s officially one of the Gold Coast’s most sought after suburbs.

John Newlands, REIQ Gold Coast chairman, says Mermaid Beach is in high demand due to its beautiful beaches, quiet streets and excellent amenities.

“It’s got surf clubs, some great new restaurants and is close to transport and the amazing Pacific Fair shopping centre,” he says.

And it’s also in the most under-supplied new apartment market on the Gold Coast, says Nick Clydsdale, director of CBRE residential Gold Coast.

“As the Gold Coast grows into a regional lifestyle powerhouse, new quality stock is in high demand by owner-occupiers and investors alike,” he says.

“Nationally, this is the suburb to invest in.”

Luke Henderson, director of Professionals John Henderson, says what makes Mermaid Beach unique is its high rate of owner-occupiers.

“I’d say around 80 per cent of the buyers we’re selling to are owner-occupiers – and that’s for units as well as houses,” he says.

“There’s still a three-storey height limit on the beach side of Mermaid Beach; that’s what drives the area in terms of appeal for buyers … the low density attracts owner-occupiers. It’s all about the sense of community – that’s why these height limits are pivotal.”

Recently though, height limits along the Gold Coast Highway have been changed to encourage improvements to the area.

Mr Henderson says the idea was replace the unsightly buildings along the highway with modern apartment buildings.

“What was mostly there was old motels and sex shops and the idea was to clean it up in time for the Commonwealth Games,” he says.

“It’s a win-win for Mermaid Beach because we get to improve the look along the highway, while still retaining that low-density feel on the beach side that attracts many people to Mermaid in the first place.”

One of the first projects launching soon is Otto, a boutique eight-storey development of only 70 apartments 350 metres from the beach.

Consisting of two and three-bedroom apartments, each residence will feature luxurious fittings, generously proportioned interiors with expansive floor-to-ceiling glass that flow out onto curved balconies, with spectacular ocean and hinterland views.

All of the three-bedroom units come with two car parks, as do most of the two-bedroom units. The complex itself will feature a pool and cabana terrace, a fully equipped gym and covered outdoor dining and lounge balcony with barbecue facilities.

Developer Barry Morris says his company, Morris Property Group, was conscious of designing a building that would emulate the Mermaid lifestyle.

“We have designed these apartments as long-term owner-occupier residences because they’re the people who want to live at Mermaid,” he says.

“They’re for people who want a high standard of living with airconditioning, excellent amenities, all in a location that is tipped to be one of Australia’s best-performing suburbs for 2017.”

And he says the rental returns are as impressive as the capital growth.

“Our research shows Mermaid Beach has one of the lowest vacancy rates (1.4 per cent) and that people are willing to pay a premium to live in new units there,” he says.

“The average rental for an existing older unit is around $390 a week, whereas new units get about $615 [per week].”

Mr Morris describes Mermaid Beach as the Gold Coast’s version of Toorak or Double Bay.

“It’s an owner-occupier location and it’s had very little new development for probably decades,” he says.

“We saw an opportunity to create a residential building which could provide accommodation for people in a world-class location and we were determined to help preserve the current feel of the suburb.”