Gold Coast a favoured spot for Asian investors
Asian investors and developers are seeing real value in Queensland’s property market, and the Gold Coast is becoming a favoured investment spot.
Interest in the Gold Coast property market from wealthy Chinese investors in particular has been increasing over the past 12 months. Many properties, particularly development sites, have sold to Chinese buyers this year and more deals are imminent.
There are three main factors which are encouraging Chinese property investment on the Gold Coast. First and foremost, uncertainty and instability in China is encouraging investors to look elsewhere, and Australia is seen as a safe haven.
Having property investments in Australia also makes it easier for Chinese investors to immigrate should they decide to so in the future. The educational opportunities and lifestyle on offer, particularly in South East Queensland, are often named as key factors in the decision to relocate to Australia.
The Gold Coast is a primary focus for a growing number of Asian investors for many reasons, but particularly because it is one of Australia’s primary tourism hubs. Tourist numbers are expected to rise further in the years to come, not due to the impending Commonwealth Games, but because flights to-and-from southern China are set to run from the Gold Coast Airport.
Chinese buyers also see now as a good time to buy into the South East Queensland, and particularly the Gold Coast, as prices are at more affordable levels than in the past. Development site values are significantly reduced from their peak in 2007/2008, and prices are set to rise again as confidence picks up. We are already starting to witness the beginning of this boost to sentiment.
A Chinese buyer recently snapped up a beachfront development site with approval for a 17-storey luxury apartment building in Coolangatta on the southern Gold Coast and is now working on undertaking a development using local consultants.
This buyer recognised the potential of the Gold Coast and its tourism market, especially on the southern end of the region. There is plenty happening in Coolangatta and growth in the region is imminent, with $1.9 billion in various infrastructure projects approved in the area, including the expansion of the Southern Cross University.
The Gold Coast Airport will also continue to grow to provide for increased passenger numbers – in recent years the airport has serviced around five million passengers, but this is forecast to more than triple to over 16 million by 2031/2032.