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Bureaucratic stroke of pen boosts Perth, Gold Coast

Bureaucratic stroke of pen boosts Perth, Gold Coast

EXPERT OBSERVER

Why should property investors care that Perth and the Gold Coast are now considered “regional” towns instead of “metro” cities? 

They should care because the change could have a significant impact on the real estate markets in those two cities, creating both opportunities and risks for investors. Here, I will explain why.

We all know that immigration is one of the reasons Australia’s economy has kept growing year after year, for the past 27 years. A provocative professor at the University of Sydney claims that Australia’s “economy is addicted to immigration” because —without the constant growth in population— our economy actually would have gone into recession several times over the past three decades.

Saving the country from recession isn’t enough anymore, however. The federal government wants immigrants to do more. That’s why it’s passed its regional immigration plan, which allocates 25,000 visas to immigrants who are willing to live for three years in regional Australia. After that, they can qualify for permanent residency. 

The government billed the plan as a way to boost hardscrabble Australian bush towns.

Now, the government has decided that both Perth and the Gold Coast qualify as “regional” under the regional migration program. While that may be bad news for smaller, dustier towns, for the two cities it is excellent news. It means that they can benefit from thousands of new immigrants, the jobs they help create, the university fees they pay, and the money they invest in housing.

The new regional designation could be the factor that helps many students, workers, and investors from China decide to move to these two cities. It won’t mean more transactions tomorrow. Over the next 12 to 24 months, however, this change could add several thousand additional sales to the two markets. 

A 10% TO 20% INCREASE IN TRANSACTION VOLUME?

These following numbers are an example of how it could play out. In Perth last year, there were about 26,000 sales. An additional 3,000 sales in a year would be more than a 10 per cent increase in annual transactions. An extra 10% in transaction volume would help put a floor under prices and help stimulate new construction. 

On the Gold Coast this year, there will probably be about 15,000 transactions. At that pace, an additional 3,000 sales would mean an increase of about 20% in transactions. That would have a similar impact as in Perth. 

The reclassification sounds like bureaucratic mumbo jumbo, but it has real-life impact. It was subject to a lot of behind-the-scenes lobbying and arm-twisting. This change could mean thousands of new residents coming to these cities and buying property, attending university, or starting businesses. It’s an economic gold mine for Perth and the Gold Coast.

There will now be a total of 25,000 visas for foreigners willing to live in regional areas. With their new “regional” classification, the Gold Coast and Perth have become (with Adelaide) the locations by far most likely to attract those immigrants. 

The educational institutions, job markets, infrastructure, and lifestyle in the cities makes smaller regional destinations look less appealing by comparison. Regional areas like Dubbo or Geelong have a lot going for them and can provide excellent opportunities to new migrants. But the Gold Coast, Perth, and Adelaide are more prominent and by most calculations offer better prospects.

WHAT DOES IT MEAN FOR INVESTORS?

The change will also give the Gold Coast and Perth a boost in the battle to displace Melbourne and Sydney as the top destinations for Chinese migrants, students, and property buyers. 

Both cities are struggling to increase the share of foreigners they attract. Their retailers want more residents, their universities want more students, and their developers want more property buyers.

If I were a property investor in the Gold Coast or Perth today, this new development would reassure me. Population growth has been the primary driver of price growth in Australia over the past several decades. With the regional migration program, Perth and the Gold Coast stand to see their population growth increase above present rates. Investors who can ride that growth to profits should do very well.

 

 

Source: www.propertyobserver.com.au

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Developments

Burleigh Heads Twin 22-Storey Towers Approved

Burleigh Heads Twin 22-Storey Towers Approved (1)

Two 22-storey towers have been approved in Burleigh Heads at the southern end of the Gold Coast, backed by developer Nielson Properties.

The beachfront towers, located at 48-58 The Esplanade and First Ave, had been supported by a majority of councillors in a council planning committee held last Thursday, in a nod that will see the first five-star hotel in the area.

The final determination on the Burleigh Heads project was made on Tuesday when full council came to vote.

The $350 million development project, in conjunction with Pointcorp’s Chris Vitale, comprises a 132-room luxury hotel and 77 residential apartments on the amalgamated 4039sq m Burleigh Heads site.

Burleigh Heads Twin 22-Storey Towers Approved (3)

The Burleigh Heads site has been occupied by the 49-unit White Horse Holiday apartments, which Nielson Properties secured under a put-and-call deal for $22 million in 2018.

Plans for the existing unit block would see the complex demolished, making way for the two towers, standing 79.5 metres high, and 394 car parks over three-levels of basement car-parking.

Gold Coast locals who were against the project raised concern about the development’s height and density arguing that the towers would cause shadowing of recreational areas and the beach, while the Community Alliance said the development was inconsistent with council’s own Burleigh Heads Place Analysis study.

Burleigh Heads Twin 22-Storey Towers Approved (2)

Nearby, Sydney-based Weiya Holdings has plans for a 14-storey building at the Old Burleigh Theatre Arcade at 64 Goodwin Terrace.

Weiya Holdings purchased the site for $18.5 million in August of 2019, with plans to keep the façade of the existing two-storey Burleigh theatre building.

Down the road, Brisbane-based developer Spyre Group was approved for its 18-storey apartment tower located at 112 The Esplanade in Burleigh.

Spyre Group, led by Andrew Malouf, secured the $16 million site from the eight owners of the existing 12-year old apartment building originally developed by Mimi Macpherson, sister of supermodel Elle, in 2003.

Nielson Properties is also behind a 50,000sq m office project at 205 North Quay in Brisbane CBD with Cbus Property.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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Gold Coast

Broadbeach Waters waterfront trophy home sold for $5.7 million

Broadbeach Waters waterfront trophy home sold for $5.7 million (1)

An architect designed home nestled on a 1,608sqm block in Gold Coast’s Broadbeach Waters has been sold for $5.7 million.

The 853 sqm house at 327 Monago Street comprises 7 bedrooms, 7.5 bathrooms, designer kitchen and multiple indoor and outdoor living and entertaining areas.

The light-filled living and dining zone comes with wood-burning fireplace, custom-built cabinetry and electronic blinds.

Broadbeach Waters waterfront trophy home sold for $5.7 million (3)

There is an executive office with library, plus separate office or boardroom with separate entrance.

The home also features rumpus room, water frontage, outdoor dining pavilion, pool, and water features.

Broadbeach Waters waterfront trophy home sold for $5.7 million (2)

It is situated close to Albert Part, Star Casino and golden beaches.

Michael Kollosche and Ryan Ward from Kollosche Broadbeach sold the property.

It was last sold in 2015 for $3.15 million.

 

 

 

This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.

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Developments

Flow $70 million beachfront Coolangatta project launched

Flow $70 million beachfront Coolangatta project launched

With broad features from surfboard lockers to exclusive wine lockers, the $70 million Flow Residences has been launched on the southern Gold Coast.

Flow is the project of avid surfer and local property developer Paul Gedoun and his S & S Projects on the Snapper Rocks destination.

Jayde Pezet is sales and marketing director of KM Sales and Marketing.

“Nothing has been left to chance. It is a project of unpretentious but elegant luxury that connects beautifully with the iconic Snapper Rocks with sweeping views of the Gold Coast.

Positioned on an elevated north-facing site, 1 Petrie Street, and overlooking Coolangatta’s Rainbow Bay, the project will deliver 22 premium residences exclusively for owner occupiers.

Architect Cottee Parker has designed Flow Residences.

“Flow Residences will appeal to downsizers looking for lifestyle at its best,” said Mr Pezet.

“It really is a stunning collection of beachfront apartments that blend the simplicity once found in a traditional coastal shack with luxurious apartments, superior finishes and a unique approach to resident amenities.

The exterior design features uncluttered lines and curved corners to take advantage of the prime corner location of Petrie Street and Marine Parade. The site directly overlooks Greenmount Beach and Rainbow Bay and each apartment offers spectacular ocean views of the pointbreak and the Gold Coast.

There will be 12 levels plus three levels of basement parking will provide at least two car parks for each apartment.

Apartments are available in two, three and four-bedroom formats and are priced from $1.175 million.

 

 

 

 

This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.

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