Hilton Surfers Paradise (Gold Coast) – construction update…

Construction has topped out on the roof of the Boulevard tower of the Hilton Surfers Paradise Hotel and Residences on the Gold Coast – reaching 32 levels and 186 residences.

At the same time, work is moving forward on the second and tallest tower, Orchid Tower, which is currently at level 14 and due for completion in late 2011.

It will feature 57 levels and include luxury residential apartments and a Hilton Hotel.

The basement car park excavation has reached the B5 level, which is the lowest basement in the total of 6 levels.

With only 37 opportunities remaining within the development, this is the final opportunity to secure a private Hilton residence. Click here for more details on Hilton Surfers Paradise.

Coomera will move from back yards and double garages to high rises of up to 15 stories as council moves to create a Surfers Paradise in the ‘burbs.

The Gold Coast City Council plan would make the ‘family belt’ at east Coomera one of the city’s most densely populated suburbs.

The council’s ‘new urbanism’ design allows up to 200 dwellings per hectare (10 per hectare is normal for suburbia) which is a similar density to Surfers Paradise.

Coomera is being settled by young families who want bigger, affordable blocks. But with population projections of up to 350,000 people in Coomera by 2012, the council has to find new ways to squeeze them in.

‘Surfers Paradise in the ‘burbs’ is planned for the bush around the train station.

Local councillor Donna Gates said the State Government required the density to accommodate the huge numbers of people moving to the Coast, especially to the northern end.

“We need to accommodate them within the urban footprint and I don’t see how else it can be achieved.”

Cr Gates said the region would be well serviced, with council’s four-year capital works plan including a community centre, pool and library.

“We’re looking at the west (Coomera) now because that’s where people are now. But it’s all there in the forward planning.”

Buildings between two and six storeys will constitute most of the high rises but some as tall as 15 storeys will be allowed between the M1 and the station, said Cr Gates.

However developers say families will not want to live in high rises without beaches, shopping centres, restaurants and entertainment nearby.

Midwood Report author Bill Morris said east Coomera would have the same density as Surfers Paradise and Broadbeach — without the amenity — and in an area where people wanted bigger blocks.

“They are imposing this vision on east Coomera which may have the effect of ceasing development,” he said.

“It’s just wall-to-wall high density.”

The Coomera Town Centre Structural Plan revolves around a town centre near the railway line close to land owned by the State Government for future facilities such as a TAFE or a hospital.

Around that, the council wants high-density residential of up to 200 dwellings per hectare and for people to rely on local public transport.

Moving out from the town centre, housing will become less dense — between 25 and 150 dwellings per hectare — and include townhouses and average-sized blocks.

The project will include 91 apartments and a three-level underground carpark, with 124 parking spaces.

There will also be a public space and a recreational area.

Final application is with council and once approved construction is expected to begin as soon as possible.

The development will include a gym, theatre and barbecue area.

The three-bedroom penthouse will have exclusive access to a rooftop terrace and will feature a spa and plunge pool.

Almost $27 million has been spent on Gold Coast luxury apartments in the past fortnight, including $2.75 million for a penthouse in the Ambience twin tower development at Burleigh Heads.

A Brisbane couple, who did not want to be identified, bought the 15th floor penthouse.

The penthouse has three bedrooms and a study, three car parking spaces and an 86sqm wrap-around balcony offering sweeping ocean views.

Buyers are realising that prices aren’t getting any lower and brand new developments are becoming more harder to come by.

People have been sitting on their cash, but the property clock is at the bottom. People thinking they will sit around trying to pick the bottom of the interest cycle — they’ve missed it — it was two months ago.

Most of the buyers were from capital cities.

They’re from Brisbane, Sydney and Melbourne and they’re seeing the value in our top end.

They’re doing their research and they’re buying based on quality and location. They’re not buying based on price but they’re still getting good value.

Two other Ambience apartments have sold in the past two weeks including a three-bedroom, 13th floor apartment for $1.6 million and a three-bedroom, third floor apartment for $1.2 million.

The towers were finished in January and house 95 units, with only 15 left for sale.

Other Burleigh Heads apartment sales in the past fortnight include the penthouse and sub-penthouse at Ivory for $4.85 million and $3.8 million respectively.

The penthouse in the second Ambience tower, which is identical to the one just sold, is expected to sell quickly.

Four people, including some from Sydney, are ‘flashing their cheque books’ and have shown interest in the apartment in the past few days.

When it rains it pours.

Burleigh Heads appeals because it’s a touch quieter, families come back year after year on holidays and it’s an easy drive from Brisbane.

The Gold Coast’s southern beaches continue to attract luxury apartment buyers, with $3.245 million worth of property settling at one of the area’s premier developments, Kirra Surf, in the past month.

Buyers from across Australia have snapped up apartments during the latest sales run at the $95 million project, situated at Kirra Beach, bringing total sales to date to more than $70 million.

The settlements bring Kirra Surf’s sales tally to 77 of 91 units.

The sales come just weeks before the auction of the project’s luxury 11th floor penthouse.

The 254sq m penthouse features unobstructed 270-degree ocean views, three bedrooms, three side-by-side car parks and a rooftop spa and barbecue. It will go under the hammer on site on Wednesday .

During the latest sales run at Kirra Surf, a $1.7 million three-bedroom-plus-study apartment, $780,000 two-bedroom apartment and $765,000 two-bedroom apartment have sold.

The sales were to buyers from right around Australia, including Mount Tom Price in Western Australia, Bellevue Hill in NSW and Geelong in Victoria.

“Since the beginning of the year, this has been the trend for luxury apartments. “Interstate buyers are seeing the value offered by Gold Coast property, particularly apartments with beach or water views.

“The latest buyers have purchased in Kirra Surf as a lifestyle investment and intend to use it as a holiday home, which is indicative of the types of purchasers that have been attracted to the project.

“We are seeing the majority of interest from owner-occupiers or those who plan on living in, or holidaying, in the apartment for part of the year.”

Buyers recognise the opportunity to secure apartments in beachfront buildings such as Kirra Surf are dwindling.

There are few sites remaining and no new developments being launched at the moment, so buyers are seeing the value in purchasing now in prime locations such as this.

New policy changes will come into effect immediately, while those requiring alterations to the Foreign Acquisitions and Takeovers Regulations 1989 will come into effect shortly when amended Regulations are promulgated.

Off the plan sales to foreigners

Previously, developers could get approval to sell up to 50% of apartments in a new residential development to foreign persons. This has now been increased to 100%. Restriction that the apartment must be brand new when sold have also been varied to allow a developer to rent the apartment for no more than 12 months before it is sold by the developer to a foreign person. While developers could previously make an application to FIRB for approval of sales to foreign purchasers in particular development (and foreign purchasers did not have to make a separate application), this no longer applies. Foreign purchasers must now make their own application.

The form to be used has yet to be released and a review of these new laws will take place after two years. These changes are intended to help residential developers to sell more stock in the current financial climate.

Vacant residential land

Changed laws now allow foreign purchasers to build a new dwelling within 24 months of the acquisition of a vacant residential lot, as opposed to the previous time frame of 12 months.

Foreign companies purchasing second hand dwellings

There is to be no limit to the number of established dwellings which can be purchased for employee accommodation by foreign owned companies with employees in Australia. If the property is expected to be vacant for more than 6 months, then the foreign owned company must sell or rent the dwelling.

Redevelopment of second hand dwellings

Any development must increase the number of dwellings. The requirement that no rental income can be received prior to demolition has not been changed. A foreign purchaser will now have 24 months to commence construction of new dwellings where dwellings have been purchased prior to demolition for a particular residential project. Development expenditure must be at least 50% of the purchase price of the property.

Temporary residents purchasing second hand dwellings

A temporary resident now includes all foreign persons living in Australia on a valid visa, but does not include short term visitors such as tourists. Foreign students who are resident in Australia are no longer subject to a $300,000.00 limit on the value of an established dwelling purchased as their principal place of residence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For more information visit: www.firb.gov.au

• Foreign Investment Review Board (FIRB) Australia - Residential Property Changes

THE rate of new apartment sales on the Gold Coast and northern NSW has jumped 52 per cent in the past three months, Colliers research has revealed.

According to the Colliers International Gold Coast Apartment Report, released this week, 117 new apartments were sold in the March quarter, compared with 77 the previous quarter.

Colliers International director of project marketing Brinton Keath said several factors had started to encourage investors back to the market.

“In the last quarter the variable home loan rate settled around a historical low of 5.85 per cent and vendors began to meet the market in terms of price,” he said.

“However, what made the most impact to sales this quarter was the surge in inquiry from Brisbane and interstate-based investors looking for Gold Coast apartments, which converted into sales.

“These out-of-towners clearly recognised the value of recent reviews in pricing of apartments by developers and the true value they now represent compared to 12 months ago.

“That said, although activity has picked up of late, the new apartment market is not yet out of the woods.

“Once locals return to the marketplace, coupled with the interstate investor market, we will see a solid lift in the quarterly results. We are just at the beginning of the market turning.”

The report shows the city’s supply of new apartments has tumbled, from 7.3 years in December to 4.6 years three months later.

Apartments in Southport and Labrador captured the lion’s share of sales with 51 transactions, followed by those in Robina/Varsity Lakes, Burleigh Heads and Carrara, with 22 deals.

Units in the beachside hubs of Surfers Paradise, Chevron Island and Main Beach ranked third with 16 sales, just outperforming the North Shore — stretching from Runaway Bay to Hope Island — which registered 15 sales.

Southern beachside apartment projects (with 10 sales), northern NSW (two sales) and Broadbeach (one sale) accounted for the remainder.

The average sale price of a new apartment during the quarter was just over $825,000.

Mr Keath said the latest report had identified a buyer trend towards completed buildings, which accounted for 64 per cent of sales.

“The popularity of Brighton on the Broadwater, Southport Central, Circle on Cavill and Allisee this quarter is evidence of this,” he said.

“The March quarter has also seen highrise sales almost double the number of those recorded during the December quarter.

“This is indicative of immediate to short-term needs of buyers. However, over the coming months, we are expecting off the plan investments to come back in favour as consumer confidence continues to improve and buyers take a long-term view.”

The high rise sector saw the highest number of sales across the board, with 61 transactions recorded in 31 projects for a combined total of $60.7 million. Meriton’s Brighton on Broadbeach’s Marina tower was the top performer with 16 sales.

The medium-rise sector saw 34 sales over 25 projects with a gross value of $24.2 million with the best performing project Stockland’s waterfront Allisee at Hollywell, with 11 sales.

There was a wide range of price points, with sales from about $500,000 to $2.6 million for a penthouse.

The low-rise sector remained relatively static during the March quarter with sales numbers, average prices and gross sales value around the levels of the December quarter. A total of 22 new low-rise apartments were sold during the March quarter, which is up slightly from the 18 sold in the three months to December, 2008.

Colliers’ Gold Coast research manager Lynda Campbell, who compiled the report, said Proud Central at Labrador, a proposed Southport low-rise development, was the only new project to enter the March quarter report.

“With 18 apartments having an average price of $400,000, Proud Central is catering for the first home buyer and investor,” she said.

AS Indy kicks into gear, the Howard Group has unveiled its long-awaited plans for a $170 million `floating’ high rise to be built alongside the Surfers Paradise circuit.

The Howard Group, led by V8 enthusiast and Indy fan Mark Howard, has revealed plans for the unnamed 40-storey tower on a site in northern Surfers Paradise.

The Gold Coast based developer, who founded the Howard Racing Team, has received council approval to construct the tower on the 2382sqm triangular site bounded by Surfers Paradise Boulevard, Main Beach Parade and Higman Street.

The Howard Group bought the site more than 10 years ago from low-key developer Hiro Pamamull Administrators for $3.8 million.

The holding is next to 158 The Esplanade, another site owned by the developer.

It is the second high rise in Surfers Paradise for the Howard Group it built the Pinnacle on the riverfront south of central Surfers and is one of the few developments announced for the northern end of the glitter strip in recent months.

Plans by Raptis Group and CP1 to redevelop the Gold Coast International Hotel and an adjacent block of land have been quashed after the two companies decided to sell in a move to shave debt.

Howard’s Cox Rayner-designed tower will comprise 70 two-per-floor apartments with beach views; a further six podium-level apartments; three commercial tenancies at ground level; 13 offices and recreational facilities including a heated pool, spa, sauna, gym and residents’ lounge.

Earthworks are due to begin early next year, with construction starting in June, 2009.

Mr Howard said the tower was designed to maximise its prime location and become a landmark Gold Coast development.

As well as being on the Indy cicuit, the site is opposite the proposed light-rail track.

“Some of the world’s most iconic buildings, such as Times Square in New York, sit on triangular sites,” said Mr Howard.

“The shape of the site, combined with its gateway to Surfers Paradise location, encouraged us to commission a spectacular building design.

“As a result of some impressive engineering the tower will float above the podium at level three.”

Mr Howard said the tower would sit above the three-level commercial precint, balanced on a centre plinth.

This would give the floating effect, he said.

Mr Howard said another key point of difference would be the office space, to be used exclusively by residents.

“We believe that home should be home and the office the office,” said Mr Howard.

“We will be offering a happy medium where home and the office can be in the same location but not in the same space, only a lift ride away.”

He said his concept was supported by Gold Coast City Council.

“Council supports the home office space offering because it delivers both economic and environmental benefits,” he said.

“Since the residents won’t have to drive to work, it will not add to the area’s traffic.”

Mr Howard said as part of the building’s green commercial concept would include rainwater-collection devices, energy-efficient design and basement security storage.

“The apartments also have close proximity to a patrolled beach; excellent security; spacious floor plans designed for practical living; two side-by-side car parks per unit; high quality finishes and fittings and great amenity,” he said.

“The development has been designed with comfortable emptynesters in mind.”

Howard Group is also developing the environmentally friendly $170 million Sphere, a planned community near Griffith University.

THE Raptis Group yesterday confirmed it was negotiating with Brookfield Multiplex over a possible tie-up on its Hilton Surfers Paradise project.

In a brief statement to the Australian Securities Exchange, the listed Gold Coast developer said discussions with Brookfield Multiplex were ‘ongoing’ and ‘no agreement has been concluded’.

The ASX statement came in res-ponse to a report yesterday in The Gold Coast Bulletin which exclusively revealed Multiplex to be a possible buyer or joint-venture partner for the $700 million Hilton project, which is being undertaken on the site of the former Dolphin Arcade.

Neither Raptis Group nor Brookfield Multiplex would comment on the negotiations, but sources said they were close to finalisation.

“We confirm that we will inform the market once there is a binding agreement,” said Raptis Group.

Brookfield Multiplex is controlled by Canadian investment powerhouse Brookfield Asset Management, which last year privatised listed builder Multiplex in a $4.2 billion takeover.

Raptis has been seeking a joint-venture partner for the Hilton Surfers Paradise project after putting all its Gold Coast assets on the market in a bid to reduce its $750 million debt.

Sources said Brookfield Multiplex was a potential outright purchaser of the Hilton, but the Raptis announcement yesterday said Multiplex intended to take ‘a role in the project’.

IF there’s one topic Queensland developers might be expected to know a thing or two about, it’s building Gold Coast apartments.

But as some of the old local names fall victim to tough times, one Canberra-based company is showing the glitter strip how it’s done, though in much smaller bites than previously.

Amalgamated Property Group has completed a $900 million string of projects in south-east Queensland in the past four years — including Brisbane’s tallest residential tower — and has a current $1.15 billion workbook in the state.

APG has grown to a similar size as the better-known Sunland Group, but as a private firm it has largely flown under the radar.

In addition to APG’s residential work, the company has completed a number of office buildings — and unlike most developers, it holds all the commercial buildings it develops as long-term investments.

Joint managing director Barry Morris says APG’s investment portfolio currently includes more than 180,000sqm of offices, in Canberra and Brisbane, worth about $700 million.

He says the company used debt for its developments, but was not affected by the credit crisis as its funding was in place for the next five years.

“Having a balance between development and investment gives us cash flows that are not dependent on the development side of the business,” Morris says.

The company has its own in-house construction arm that works only on APG projects.

Morris, a former accountant, and partner Graham Potts, a former real estate agent, formed APG in 2002, although the two had worked together on various developments in Canberra since 1994.

The company made a strategic decision to expand beyond Canberra and considered Sydney and Melbourne but decided south-east Queensland offered more opportunity.

APG moved into Brisbane in 2005, buying the $200 million Aurora Tower project from builder Bovis Lend Lease.

It then bought Brisbane’s 30-year-old Suncorp Plaza office building, which it refurbished and re-let, and has almost completed building a 26-level, 25,000sqm tower next door. Both projects will stay long-term in APG’s investment portfolio.

Simultaneously, APG turned to the Gold Coast, where its debut project was the $85 million Verve at Broadbeach. The project was designed for residents only and sold out in less than six months.

The company then moved on to develop the $200 million Sierra Grand resort and the $120 million Eclipse projects at Broadbeach, as well as the $90 million Element and the $32 million Ivory, both at Burleigh Heads.

The strategy of targeting owner-occupiers hit the mark with buyers, but Morris says conditions have deteriorated in recent times.

“The Gold Coast is struggling,” he says. “The enquiry rate is good but the conversion (sales) rate is slow.”

Nonetheless, APG recently launched the 31-unit Eclipse at Broadbeach.

Its apartments range in price between $2.4 million and $5.7 million, and have 30m frontages — wider than some beachfront house blocks.

APG had planned for a twin-tower mixed hotel and residential development next to the Gold Coast Convention Centre, on the former Volare restaurant site, which it recently bought for more than $20 million, but Morris says that project had been shelved until conditions improve.

In Canberra, APG this week sold out its $50 million Oracle project. Apartments were priced between $299,000 and $585,000 and aimed at investors.