Gold Coast real estate update

Real estate update
$1 billion transacted on the Gold Coast in less than 12 months
June 2015
After seven post-GFC
years, is the Gold Coast
on the cusp of another
property boom?
Within the past 12 months, over $1 billion
of real estate assets have been contracted
for sale. Three-quarters have been in the
residential and hotel asset classes (c. $841m)
and the balance in retail (c. $200m), office
(c. $46m) and student accommodation
(c. $45m) classes.
The booming Sydney and Melbourne markets
have gained the most attention during this
period; be it from investors, developers, the
media or politicians. We believe the ever
increasing price disparity between these
cities and alternative markets will turn even
more attention to South East Queensland,
of which the Gold Coast is the focal point.
Further pending sales showing strong buyer
interest include the Hilton Hotel, the Rocket
Office Building in Robina, and the Soul Retail
complex which closes at the end of June 2015
having received strong investor interest and
price expectations above $90m.
Value of real estate assets transacted in the past 12 months
Student
accommodation
Residential
$414m
$45m
(37%)
(4%)
Hotel
Retail
Office
$427m
$200m
$46m
(38%)
(17%)
(4%)
Buyer profile - country of origin
$180m
$85m
(16%)
(7%)
$325m
USA
China
(29%)
Hong Kong
$143m
(13%)
Whilst Asian buyers account for 58%
(c. $648m) of all sales, Australian related
entities are still very active, accounting for
35% (c. $398m). The number and value of
these transactions highlights an increasing
expectation that the Gold Coast could be the
next growth region in Australia.
Singapore
$398m
(35%)
Australia
Source: Based on analysis conducted by PPB Advisory from various sources
Major real estate assets transacted in the past 12 months
Site
Location
Purchaser
Status
Purchase price $m
Iluka
Surfers Paradise
Forise Holdings (Hong Kong)
Under contract
65.0
Jewel
Surfers Paradise
Wanda (China)
Settled
81.8
International Beach Resort
Surfers Paradise
Aquis – Fung (Hong Kong)
Under contract
55.0
Paradise Resort and Thakral site
Surfers Paradise
Ralan Group (Australia)
Under contract
75.01
Palm Beach Caravan Park
Palm Beach
Sunland (Australia)
Settled
18.4
Lakeview
Broadbeach
Sunland (Australia)
Settled
61.0
Surfers Royale
Surfers Paradise
Ridong (China)
Under contract
21.0
GCI
Surfers Paradise
Alan Ali (Australia)
Settled
21.0
83 Scarborough Street
Southport
Auscont Holdings (China)
Settled
15.5
Robina
Aquis – Fung (Hong Kong)
Under contract
45.0
The Esplanade (amalgamation)
Surfers Paradise
Banyan Tree (Singapore)
Settled
50.0
Sheraton Mirage Hotel
Main Beach
Aquis - Fung (Hong Kong)
Under contract
160.0
Marriott Hotel
Surfers Paradise
Marriott Vacation Club (USA)
Under contract
85.0
Crowne Plaza
Surfers Paradise
Private Group (Singapore)
Under contract
70.02
Sofitel
Broadbeach
Huayu (China)
Settled
62.0
Chevron Renaissance Retail
Surfers Paradise
Precision Group (Australia)
Settled
73.2
Oasis Shopping Centre
Broadbeach
Abacus Property Group (Australia)
Settled
103.5
Metro Market
Biggera Waters
Intrasia Oxley (Singapore)
Settled
23.1
Foxtel Building
Robina
Centuria (Australia)
Settled
46.0
Total
Residential
Student accommodation
Robina
Hotel
Retail
Office
Contacts
$1,131.5
Angie Croy
Senior Manager
t: +61 7 3222 6853
m: +61 450 108 426
e: [email protected]
Garry McLean
Partner
t: +61 7 3222 6826
m: +61 409 342 761
e: [email protected]
Brisbane
Central Plaza One, Level 27
345 Queen Street Brisbane
Gold Coast
Level 8
50 Cavill Avenue
Surfers Paradise
Sale price includes development land
Sale price includes hotel component and managment rights
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Important: This information is not advice. Readers should not act solely on the basis of information contained in this document. We recommend that formal or independent advice
be sought before acting in the areas covered herein. 00936INS. June 2015 (FINAL).