"I was a street away waiting for a taxi and heard a really loud bang," Johnson Muir told the publication.
"I thought somebody had just thrown something off the balcony but then I heard the screams.
"By the time I walked around the corner police were already on the scene and holding the kids back.
"One girl was bawling her eyes out screaming 'I could've helped him and now he's dead, he's dead'."
Bunches of flowers have been left near where the teenager died — which is also the location of "Schoolies Central", a place thousands of school-leavers head to every day to get information on upcoming parties and events.
One bunch of flowers has a tribute note attached to it, which reads, "Rest easy brother, lots of love".
Queensland Ambulance said paramedics were called to the scene but their services were not required.
Counsellors are on hand for the hundreds of Schoolies staying at the Hilton, which is one of the most popular places to stay on the Gold Coast for the high school graduates.
Social media is littered with pictures of teenagers posing on balconies at the Hilton with the Gold Coast's iconic Surfers Paradise beach stretched out behind them.
The teenager's death is the latest in a tragically long line of balcony fatalities.
Last year, Sydney teen Hamish Bidgood fell to his death from a different Surfers Paradise hotel balcony after inhaling "nangs" — nitrous oxide gas.
Where to get help:
• Lifeline: 0800 543 354 (available 24/7)
• Suicide Crisis Helpline: 0508 828 865 (0508 TAUTOKO) (available 24/7)
• Youthline: 0800 376 633
• Kidsline: 0800 543 754 (available 24/7)
• Whatsup: 0800 942 8787 (1pm to 11pm)
• Depression helpline: 0800 111 757 (available 24/7)
• Rainbow Youth: (09) 376 4155
• Samaritans 0800 726 666
• If it is an emergency and you feel like you or someone else is at risk, call 111.
