Gold Coast’s ‘missing middle’ now fastest-growing housing sector

Capri Villas is part of the missing middle of the Gold Coast housing market

The “missing middle” of the Gold Coast housing market is filling the gap between high-rise towers and mega estates, with medium-density projects now leading local development.

Small-scale developments made up more than two-thirds of proposed multi-dwellings — double the share of five years ago, according to Kollosche’s Gold Coast Development Report compiled with industry analyst Michael Matusik.

From boutique villas and townhouses to compact urban villages, this new wave of projects is tackling the housing shortage while appealing to buyers seeking space, lifestyle and location without the upkeep of a big yard or hassles of high-rise living.

Only a handful of 48 villas remain in the Isle of Capri project

At Capri Villas on the Isle of Capri, only a handful of residences remain from 48 built by Monaco Property Group, with sales handled by Kollosche New Projects.

Buyers have been drawn to the turn-key appeal of the gated villas, which each have three bedrooms, courtyards and shared facilities close to beaches, schools and shops.

“Not everyone wants to live in a high-rise tower or move out of a suburb they already know and love,” said Kollosche managing director Michael Kollosche.

“Capri Villas shows there is a real market for new, turn-key homes that deliver privacy, security and lifestyle in the heart of the Gold Coast.”

The report found more than two-thirds of multiple-dwelling applications lodged with Gold Coast City Council in 2024 involved fewer than 20 homes.

Ocean Seven villas are under construction at Palm Beach and selling from $2.375m

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But with strong demand, opportunities remained limited, Mr Kollosche said.

“With limited new supply in the pipeline, opportunities like this are rare.

“Capri Villas is evidence that the missing middle isn’t just a theory, it’s what buyers are actively choosing,” he said.

Still, with the double-storey designer residences priced from $2.4m, they remain out of reach for buyers seeking an affordable entry to the market.

Other local projects across the price spectrum point to the same shift.

At Southport, the award-winning ENVI micro urban village has been held up as a model for compact, community-focused living, with first-home buyers snapping up 70 per cent of the project.

ENVI comprised ten homes on a site totalling 673 sqm, the smallest of which was the Pico Pod on a 38 sqm lot.

About the size of a standard double garage, the one-bedroom, two-bathroom home sold to a first-home buyer for just over $300,000.

ENVI comprised ten homes on a 673 sqm site, including the Pico Pod on a 38 sqm lot

Also in Southport, council-approved plans lodged in November 2024 for a five-storey, 20-unit mid-rise aimed at lower-income households, replacing a single dwelling on Minnie Street. m At UNIQ at Bundall, villas are priced from $1.7m, with the project comprising 22 design-led triple-storey homes with rooftop terraces and multipurpose rooms.

Ocean Suites on Jennifer at Runaway Bay is under construction, with seven waterfront villas selling from $3.365m.

And at Palm Beach, Ocean Seven is another new project, with seven villas over four levels, each with a private lift, selling from $2.375m.

Mr Kollosche said demand is being driven largely by owner-occupiers looking to “right-size” into homes that are functional and low-maintenance while staying in well-connected suburbs.

“People are looking for alternatives to large family homes or high-rise apartments,” he said. “They want homes that reflect how they actually live, with space for guests, work or hobbies, but without the upkeep of a traditional house.”

An artist’s impression of the UNIQ project at Bundall

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