NZers spend $19m in Gold Coast boom

By GREG ANSLEY Australia correspondent

GOLD COAST - New Zealanders have continued to pump money into Gold Coast residential property, which is still powering ahead despite signs that the steam is starting to go out of other major Australian markets.

In the 12 months to June, New Zealanders invested A$17 million ($19 million) in the Coast, nudged aside by the A$18 million ($20 million) spent by Japanese buyers, and overwhelmed by a huge A$138 million ($155 million) injection from Malaysia.

But researcher Lynda Campbell, of PRDnationwide, said the bulk of Malaysian investment was the A$134 million paid by the nation's Mulpha group for the Sanctuary Cove resort.

Campbell said the Gold Coast - reporting record sales of units and fired by development worth A$10.5 billion - continued as the investment focus of New Zealanders in Queensland.

Investment there accounted for most of the A$25 million spent in the state by New Zealanders during the 12 months - equal to total Japanese residential spending in Queensland and, Malaysia's Sanctuary Cove deal aside, second only to the A$93 million spent by Britons.

The Gold Coast unit market continues to boom, with PRDnationwide Research yesterday reporting the third straight quarter of record sales, reaching A$309 million in the three months to September 30.

More than 2100 new units were sold in the year to September, and PRDnationwide Gold Coast spokesman Paul Randell said at that rate the remaining stock of 1098 units should be sold within six months.

Gold Coast Development Association president Alan Midwood said supplies of vacant land could evaporate within a decade as the city's population soared to more than 600,000.

Developers had major residential projects worth A$4.5 billion either underway or planned, and sites earmarked for projects would double that figure.

"National commentators predicting an end to the current property boom need to look at the Gold Coast in isolation and understand what is driving our markets and will continue to drive our markets," he said.

"We have limited land supplies suitable for residential development, and any property close to the beach or overlooking the water has a scarcity component in the price which is becoming increasingly important as the population grows rapidly."

Midwood's predictions of a waterfront boom were supported by other analysts, who said pressure would increase particularly at the northern end of the Gold Coast, where only 320 new lots were expected to come on the market in the next year.

The upgraded Pacific Highway would open the Coast's northern margins as a major dormitory area for Brisbane workers, analysts said.

Prices for vacant waterfront land have risen up to 50 per cent in the past nine months, compared with a smaller - but still impressive - 30 per cent for the whole Gold Coast.



Michael Matusik, of Matusik Property Insights, said the motorway from Brisbane was having a similar impact to the extension of the M2 motorway in Sydney, where key-area prices rose up to 45 per cent.

"We expected a similar price pattern - although not quite the same level of price rise - to occur at the northern end of the Gold Coast, and this appears to be happening."

* The Gold Coast Development Association sponsored Greg Ansley's visit .