Gold Coast Bulletin – October 18th, 2008

THEY’RE from Russia and they’re packing much more than love.

Russian investors have embarked on a love affair with the Gold Coast and it looks like being a long-term relationship.

An international marketing group called Kontinent, which was launched on the Gold Coast last month, was set up specifically to market valuable prestige waterfront property to Russian-speaking investors.

The company is involved in an exclusive agreement with the Mirvac and Lewis Land Group of Companies to market the exclusive $400 million Ephraim Island development.

They are also selling property in the prestige enclaves of Hope Island Resort, The Sovereign Islands and Harbour Town.

Kontinent director Joseph Golubinsky said Russian speaking investors throughout the Russian Federation and Eastern Europe had shown enormous interest in the Coast’s prestige property market.

“They see buying property in Australia as better than money in the bank,” said Mr Golubinsky.

“For them the Gold Coast is seen as a safe haven, now safer than the money they had in their pension funds back at home.”

He said many Russians saw investing in Gold Coast prestige property as their own retirement fund.

“For many the property is there just as an investment for a rainy day and not to live in,” he said. “The property just sits there increasing in value or they may use it just as a holiday home.

“One gentleman bought five blocks of land at Hope Island. Some of them will buy property here and the mother will live here while the children study at private schools like The Southport School or AB Paterson College.

“Other older students will live here by themselves while they study at places like Bond University.”

Mr Golubinsky said the Russians were most attracted to the climate and lifestyle that went with an upmarket waterfront property on the Gold Coast.

“Here some have 180 degree ocean views and a boat parked outside. At home it would be a small apartment with a garbage truck outside and another apartment across the road,” he said.

“In Moscow, there are 22 million people, more than in the whole of Australia — and it’s a concrete jungle.

“On the Gold Coast there are no revolutions, no typhoons, it is secure and stable and Australia this year was voted the second best country in the world behind Canada in which to buy property because it is so straightforward.”

There are plenty of cashed up Russians willing to spread their capital around.

Recent research by Colliers International found that Russian investors were now the third biggest foreign investors in Australia behind Korea and New Zealand.

The Foreign Ownership Land Register showed they have now invested $35.2 million in the Gold Coast.

Kontinent is attracting plenty of elite buyers through its Russian language website which has generated a lot of traffic — 2000 hits since its launch last month.

“We had 2000 hits on the website in the first month and in the first two weeks of October we had interest from 25 countries throughout the Russian Federation and Eastern Europe,” he said.

Mr Golubinsky said in many cases, well-heeled Russians were happy to buy prestige property through the website, sight unseen, without setting foot on the Gold Coast.

“One lady from Moscow is looking to buy a $1.9 million villa on Ephraim Island and after some discussions she said she didn’t want to have to travel all the way here. We told her it could all be arranged through our lawyers here,” he said.

“Many of these people are very wealthy buyers with plenty of money to spend.”