The $495,000 Burleigh Apartment Type Developers Stopped Building

For years, the studio apartment was the first rung on the inner-city property ladder.

It gave a single buyer somewhere attainable to own, offered investors a relatively low-cost entry into desirable neighbourhoods and allowed people to live close to work, transport and lifestyle without paying for rooms they did not need.

Then, quietly, studios began to disappear from new Australian apartment projects.

They have not vanished altogether. Student housing, build-to-rent schemes and some inner-city developments continue to include compact homes. But in the conventional build-to-sell market, the new studio has become increasingly rare — particularly in premium coastal locations.

The reason is not a lack of need. Australia has more single-person households, high rents and a worsening shortage of attainable homes in well-connected neighbourhoods. The problem is that studios have become difficult to make work within the economics of modern apartment development.

A small apartment requires many of the same expensive components as a larger one. It still needs a kitchen, bathroom, ventilation, fire protection, acoustic treatment, electrical services, plumbing connections and access to lifts, corridors and common areas.

Those fixed costs do not fall in proportion with the floor area.

At the same time, developers are carrying more expensive land, finance, labour, materials, consultants and longer approval periods. When the cost of creating each dwelling rises, the commercial incentive shifts towards larger apartments that can command a much higher total sale price.

That has helped produce the luxury bias now visible across many Australian apartment markets. New projects increasingly target downsizers and established owner-occupiers seeking two- and three-bedroom residences with generous living areas, multiple bathrooms and substantial amenity.

The homes may be excellent. But the entry-level end of the new-apartment market is gradually removed from the equation.

Studios can also present financing complications. Lending policies differ, but some banks apply additional restrictions to very small apartments or properties without a separate bedroom. Buyers may need a larger deposit, face a narrower choice of lenders or be required to satisfy minimum internal-area policies.

That can make studios harder to pre-sell. For developers relying on presales to secure construction finance, a dwelling type that is more difficult for buyers to fund can become a project risk.

Apartment-design requirements are another consideration. NSW’s Apartment Design Guide, for example, sets a minimum internal area of 35 square metres for a studio. These standards are designed to protect liveability, but they also limit the micro-apartment model seen in some international cities.

The result is a curious gap in the market: Australia needs smaller, lower-priced homes in good locations, but the development system increasingly rewards larger and more expensive ones.

But what has emerged in the last week is somewhat a welcome return of the studio apartment, in Burleigh Heads no less, one of the most sought-after locations for new property not just on the Gold Coast, but across Australia.

The $120 million project called Lura is offering a handful of studio apartments priced from $495,000. To paint the picture clearer, rarely would a new apartment development have apartments launch for under $1 million on the Gold Coast.

The studios form part of Lura’s wider collection of 96 residences, which also includes one-, two- and three-bedroom apartments and dual-key configurations.

Located at 1871 Gold Coast Highway, the development sits within the emerging Mondrian precinct, approximately 150 metres from Burleigh Heads Beach and around 200 metres from the future G light-rail connection.

The location gives the studios a purpose beyond affordability alone, with James Street’s restaurants, cafés and boutiques all within walking distance. As are Burleigh’s beachfront parks, surf club and national park.

The studios may suit singles seeking a foothold in Burleigh, interstate owners wanting a manageable coastal base or investors attracted to an apartment approved for short-term letting. That approval can allow owners to use the residence personally at selected times and place it into holiday accommodation when away, subject to management arrangements, body-corporate rules and the practical costs of operating a short-stay property.

The interiors have been designed by MODE around natural materials and subdued coastal tones. The stated specification includes engineered timber flooring, stone benchtops, brushed-nickel tapware and feature tiling through kitchens, bathrooms and laundries.

Residents will have access to amenity spread across two levels.

Level two is planned as a health and wellness centre with a gymnasium, sauna, outdoor shower and hot and cold plunge pools. The upper level will contain a rooftop swimming pool, sundeck, barbecue and dining area, with views extending north towards Surfers Paradise and south towards Burleigh Point.

Lura is being developed by TANCA, with BDCM appointed as builder, T-Cubed Consulting as project manager and NPA Projects handling sales and marketing. Construction is underway, with completion currently anticipated in late 2027.

The project’s more expensive residences provide the scale expected of a contemporary coastal tower. But its most interesting offering may be the smallest.

The studio was once an ordinary part of Australia’s apartment market. It was a first home, a city base, a weekender or a straightforward investment. As development economics pushed projects towards larger luxury residences, that modest entry point became increasingly difficult to find.

Lura fact box

Project: Lura

Address: 1871 Gold Coast Highway, Burleigh Heads, Queensland

Studio price: From $495,000

Development: 96 studio, one-, two- and three-bedroom residences, including dual-key configurations

Developer: TANCA

Architecture and interiors: MODE

Builder: BDCM

Project manager: T-Cubed Consulting

Sales and marketing: NPA Projects

Short-term letting: Approved, according to the project campaign

Location: Approximately 150 metres from Burleigh Heads Beach and 200 metres from the planned G connection

Completion: Expected in late 2027; timing remains subject to construction