“We’re looking to set records. We don’t do things half-arsed … we try to hit every project out of the park.”
And it’s that mindset that underpins every business decision for brothers Rob and Andrew Gray.
But after more than 10 years creating luxury homes in Brisbane, Graya is expanding its footprint further afield at Palm Beach on the Gold Coast.
And the Gray brothers are taking their loyal 145,000 social media followers with them.
The integrated developer-builder has lodged plans for its second site at Palm Beach, at 152-154 Jefferson Lane, a block back from the surf club, which Rob Gray says typifies the amenity on offer in this “amazing pocket”.
Graya filed plans for a beachfront apartment development, Ripple, in August this year, and will now expedite plans for its latest development, Kloud.
Under its plans, the boutique 20-apartment development will rise to nine storeys with a mix of two, three and four-bedroom apartments, which Gray says will provide different price points to the market.
“We really like what Gold Coast has to offer from a lifestyle point of view,” Gray says.
“The Graya product is always really premium and always aimed at the owner-occupiers looking for extreme amenity and extreme attention to detail.
“So when we decide to do developments they have to be premium areas. We think Palm Beach is undervalued. The proximity to the beach and restaurants, it’s really [compelling].”
There has been a slew of applications for multi-residential developments in the quieter coastal suburb but Gray says their premium product sets them apart in the luxury end of the market. Prices will start at $1.3 million for a two-bedroom apartment in the Kloud development with four-bedders expected to fetch upwards of $2.95 million.
“I feel like [the competition] is not as premium,” he says.
“Another difference with Graya is that we are the developers, we are designing it in-house and building it. All the key pillars of what goes into a good project we carry in-house. I guess we’re kind of control freaks.
“This will be our first construction project for multi-residential on the Gold Coast.”
While the heat has come out of the residential market, Gray believes there is still strong demand and an undersupply at the luxury end of the spectrum.
Gray says having an integrated development model will allow them to pull the trigger and get the project out of the ground sooner, following Gold Coast City Council approval. The Kloud Palm Beach development will jump the construction queue ahead of Ripple, which is also in planning phase.
“Construction materials prices are stabilising into the new year. Preferred builders are still able to get the tradies they need but it’s a bit tougher out there for others,” he says.
“With interest rates rising we feel there are some housing sectors on the decline, but in the luxury market there’s a supply and demand issue because there’s not going to be many options coming on line.”
And he may well be on to something.
The latest data from the Urbis Apartment Essentials report counted 336 new apartment sales on the Gold Coast in the third quarter of 2022, well below the same quarter last year, which chalked up 690 sales.
But Urbis senior consultant Lynda Campbell says sales are still tracking higher than pre-Covid levels and fringe coastal areas have an undersupply.
“The underlying factors that developers believe continue to support the apartment market on the Gold Coast are low supply, consistent demand, strong investment in infrastructure over the next decade, population growth, solid rental yields and extremely low vacancy rate,” Campbell says.
Rental yields are also very strong across the Gold Coast, outperforming Sydney and Melbourne and on par with Brisbane.
Gray says site selection comes down to research and growth opportunities. Graya has four projects across Mermaid Beach, Burleigh Heads and Palm Beach.
“When selecting a site, we look closely at all of the fundamentals—demand, future infrastructure investment, and lifestyle.
“After carefully assessing these criteria, it was a no-brainer when selecting Palm Beach as the ideal location for our next multi-residential development.”
Graya co-managing director Andrew Gray says their vision is about tapping into the beach lifestyle and strong sense of community.
“We opted for the name Kloud as it reflects our vision to bring sky homes that float above the horizon, with long views along the beach to Burleigh Headland in the north and Currumbin Headland to the south.”
Graya acquired the Jefferson Lane site in a deal facilitated by Gold Coast specialists GV Property, with a settlement due in 2023.
The sub-penthouse of their Maison development at New Farm just sold for $4.85 million, while Rob Gray and his wife Meghan’s house, Arcos, at Paddington broke the suburb record, selling on first inspection for $8.2 million.
Graya has a strong pipeline of work on the horizon in Brisbane and the Gold Coast—and their 145,000 Instagram followers are riding the wave with them.
Article source: Queensland Property Investor
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