Russians find a life in the sun Down Under
Their spectacular wealth is legendary in Europe, but now Russian investors are snapping up prestige property Down Under. Russians have emerged as the biggest property buyers in one of Australia's most sought after sun, sea and sand destinations - the Gold Coast in Queensland.
They have barged aside the British and New Zealanders to stake a claim as the up-and-coming region's biggest investors. Russian investment in the Gold Coast's luxury penthouses and beachside villas has increased more than tenfold in just three years, from A$3 million (HK$22 million) to A$35 million.
Cashed-up Russians are attracted by Australia's political and economic stability and the Gold Coast's enviable climate, say analysts.
They have also been lured by the area's rapidly changing image. Once considered the haunt of the 'white shoe brigade' - an Australian term for the nouveau riche - the Gold Coast is now marketing itself as a hip destination for hedonistic 20 and 30-somethings in search of sunbathing by day and sophisticated bar-hopping by night.
'When you've endured winter temperatures of minus 25 Celsius, our year-round mild weather is very attractive,' said Paul Barratt, project marketing director for global property group DTZ, which carried out the research on foreign investment.
The Russians, flush with wealth from oil and mining, have gained a reputation as big spenders. While British and New Zealand investors spend on average A$350,000 to A$750,000 on homes, Russians typically buy properties costing more than A$1 million.
They also splurged on helicopters and luxury yachts, DTZ said.
'They target the luxury, higher end of the market. Once a few got themselves established, word of mouth started to attract others,' said Mr Barratt.
Britons remain the biggest foreign buyers of Queensland property, spending A$112 million from 2006 to last year - 27 per cent of foreign investment. Russians accounted for 9 per cent of the A$558 million ploughed into Queensland by foreign investors last year. While the Russians are making their presence felt, estate agents are bracing themselves for a future surge in the number of investors from China and India.
