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Beachfront developments draw tourist numbers

By Greg Bell

Despite reports that tourists are demanding more from the area, the Gold Coast continues to draw in further overseas commercial investment. With beachfront developments on schedule for 2019 completion, the tide is turning from recent years on the Coast as tourism drives overseas travellers and investors. 

Which properties are the ones to watch, then? With over 500 residential suites and nearly 170 hotel rooms, the Jewel project represents an incredible investment opportunity for those in the area. 

A billion-dollar Jewel

According to the Gold Coast Bulletin, two major Chinese companies behind the Gold Coast's billion-dollar Jewel project are still on the lookout for continued opportunities in the area.

Wanda is partnered with China-based Ridong, together forming Jewel developer Wanda Ridong Group. Wanda Commercial Properties vice president, Chen Guocai, has said more joint local projects were possible in the future. 

Mr Chen said he saw the city as one of the world's best places for investment, reports the Gold Coast Bulletin.

"I think so it is a great place for Chinese tourists to come, and it is good for Chinese business entities to set up. It has great potential."

The deal for the ambitious three-tower beachfront project saw one of the world's largest property developers with Australia's biggest construction company to create "Australian architecture history".

Apartments inspire market confidence 

And the Jewel seems to be incredibly popular with investors, according to Jewel sales director Lucas Wilson,  Of the one, two and three bedroom apartments available last year, 124 of 130 were "secured" and taken off the market.

Those numbers included the three-bedroom, 280 square metre penthouse sold to a Sydney-based Australian for close to $5million. Mr Wilson said prices began at $687,000 for one-bedroom units which grew to $2.9million for three-bedroom pads.

Prices would be "slightly higher" in the next release, to instil confidence in the market and those already invested in the success of Jewel.

"We wanted to make sure we were supportive of people who have already bought. Prices are increasing as a vote of confidence in the market and our purchasers."

Mr Wilson said Chinese buyers had snapped up 40 per cent while Australian and foreign buyers outside China bought the other 60 per cent.

Jewel's construction has a projected completion date of 2019, and is set to support 2700 local jobs, with a further 500 positions for post-build operations and maintenance.

The three towers of Jewel will comprise a total 512 residential suites, a 169-room five-star hotel and more than 800 parking spaces. 

A turning tide for tourism

Matt Bekier, chief executive officer at Star Entertainment Group, said recently that Chinese tourism had dipped, making the further investment in the Gold Coast and construction of a massive beachfront hotel well-timed. 

"If you look at Australia's market share in the flow of Chinese tourists, we're losing market share. There are more of them going to Switzerland, which is harder to get to and more expensive. Capacity is a big deal. Where do they go? We don't have the hotel rooms. There's just not enough capacity here,'' he said, according to the Sydney Morning Herald. 

Five years ago, the need for new, higher-standard hotels, saw tourism projects marketed to Chinese and Southeast Asian investors. 

China is reported to be Australia's most valuable tourist market, with visitors spending more than $7.7billion every year according to Tourism Australia. It believe this is a figure that could hit $13billion by 2020.

As reported by Bloomberg, tourism could become the country's biggest export earner within a decade, but needs sound government policies to help drive the industry, the Australian Chamber of Commerce and Industry said in July. 

Developments like Jewel present rising opportunity through the area, so if you want to invest in a slice of success, reach out to the commercial team at Ray White on the Gold Coast today.

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