Where Should I Invest Next? Follow the Golden Brick Road…

With $2 Billion worth of investment going into the Gold Coast, wouldn't you like to invest in an area that will reap the benefits of substantial investment?

Demographer Bernard Salt who spoke at Property Club’s National Conference in March, wrote in his recent report, Future Gold Coast, that “the Gold Coast, Australia's largest non-capital city with a population of 600,000, is on track to hit 1.2 million people by 2050.

His report estimates that over the past two decades, the Gold Coast has added almost 15,000 new residents a year. With the average Australian life expectancy inching past 82, many of them were retirees seeking good healthcare, aqua-aerobics and cafe lattes by the infinity pool.

Now it's the Chinese leading the charge – and what a charge it is! Sparked partly by the 21st Commonwealth Games to be held on the Gold Coast in April 2018, Chinese investors are pouring about $2 billion into paradise in the form of hotel, retail and residential towers. That influx started in 2013 when a Chinese investment consortium paid $68.5 million for Palazzo Versace.

Locals are shovelling money into the place too, from the multi-billion dollar G:link light rail system to AMP Capital's $670 million redevelopment of its 1970s Pacific Fair shopping mall, which will be in reopening phase until August.

The tourists are back in force, those from China taking advantage of new three-year, multiple entry visas introduced by the Australian government last year. International visitor expenditure on the Coast was up 20 per cent in calendar 2015, hitting a record $1.23 billion, spread over a typical stay of about 11 nights. "The continued growth in international visitor spending is quite astounding," says Martin Winter, chief executive of Gold Coast Tourism. "In three years, it's increased by 47 per cent."

Over the course of last year 242,000 Chinese tourists flopped and dropped on the Coast, up 20 per cent on 2014, the year the Chinese became the area's biggest single tourism source. New Zealand now falls in second place with 185,000 visitors last year, followed by 65,000 British arrivals. Even the Japanese market is picking up – Japanese visitors to the Goldie rose 3 per cent last year to 53,000.

The airlines have heeded the call. Late last year, Jetstar began twice-weekly direct flights between Wuhan in China and the Gold Coast, putting on 70,000 seats a year. Hong Kong Airlines will soon fly three times a week from mainland China, while AirAsia X is putting on daily services out of Auckland. Brisbane Airport is also ramping up, with Qantas, China Airlines and Cathay Pacific putting on increased services out of Guangzhou, Hong Kong, Taipei and Tokyo.

Other Surfers Paradise developments are backed by a mix of local and foreign investors. Sydney's Ralan Property Services is building a $1.4 billion integrated residential resort, The Ruby, while China's Forise Holdings is redeveloping its Iluka site. Its $1.2 billion, 88-level apartment tower will swamp Q1 by ten floors, and is expected to be the world's highest tower when it's completed in 2020.

Singapore-based luxury resort brand Banyan Tree outlaid $50 million to acquire Surfers' 40-year-old landmark Bahia building, its first foray into Australia, while Hong Kong hotel group Shangri-La has snapped up the four-star Vibe Hotel.

Wanda Group, owned by China's richest man, Wang Jianlin, is the lead investor in Broadbeach's $970 million Jewel development. Comprising three glitzy apartment towers, hotel suites and retail space, it is due for completion in late 2018. The Jewel will be the first residential resort to go up right on the beachfront since Skase opened his Mirage Resort and associated Marina Mirage.

Property Club has some great property options on the Gold Coast:

Talk to your Property Mentor about our current Gold Coast listings.

Have a great week-end and catch you next week!

Regards,

Troy Gunasekera National Manager - Property Club