A GAME-changing era of tourism-related property plays is coming to the boil on the Gold Coast with mega-rich Asian developers staking their claims.
And if all goes to plan, it will pave the way for a multi-billion dollar wave of property investment that will take the beachfront strip to the next level as a destination.
“It’s a long-term game, particularly for the Chinese,” said Colliers International special projects national director Darrell Irwin. “We’re only at the tip of the iceberg in terms of the opportunity and I don’t think we fully appreciate what’s likely to happen.”
Property law specialist Clayton Glenister from the Gold Coast’s MBA Lawyers, whose clients include Asian-based developers, said outbound investment from China was increasing.
“There’s a high level of interest for Australia, particular the Gold Coast which they see as a real lifestyle destination,” he said.
Mr Glenister said three years ago the client base of some of China’s major law firms had an outbound investment strategy of 15 per cent of all transactions.
“Today, it’s at 60 per cent and they think it will go to 80-85 per cent in the next 12-18 months and sit there for the next five years,” he said.
Only a few years ago, the Gold Coast property market had hit rock bottom in the wake of the global financial crisis.
But the tide has turned off the back of a surge of investment in the city by some of China’s wealthiest businessmen and other Asian developers.
The $970 million Jewel development in Surfers Paradise is being financed by China’s richest man Wang Jianlin, head of the Wanda Group, in a joint venture with the Ridong Group.
Approval also has been granted to Forise Holdings — one of China’s largest diversified financial holding companies — for a $1.2 billion, 88-level apartment tower on the former Iluka site.
Meanwhile, some of the world’s luxury hotel brands are looking to secure a foothold in what they deem to be a major growth market for Asia’s cashed-up middle-class travellers.
Already, Hong Kong-based hospitality group Shangri-La has signed up to buy Surfers Paradise riverfront property The Vibe Hotel in a deal believed to be worth more than $40 million and Singapore hotel giant Banyan Tree has spent $50 million acquiring land to build a property.
“We’ve got a lower Australian dollar and hundreds of millions of wealthy middle-class Asian travellers — not just Chinese but Indian, Indonesian, Malaysian and Singaporean — on our doorstep,” Mr Irwin said.
“These hotel chains have seen the opportunity … and we’re going to see the development of five and six-star accommodation on the Gold Coast the ilk of which we haven’t seen before.
“What flows on from that, when these tourists see how good it is here, they’ll want to invest here.”
Original Publish: http://www.couriermail.com.au/