This is the largest package of early works contracts released so far, and will provide a shot in the arm for the local construction industry.

The works support stage one of the project, a 13-kilometre light rail corridor connecting Griffith University and the new 750-bed Gold Coast University Hospital to Broadbeach, passing through the key centres of Southport and Surfers Paradise.

Bligh says the project is the first light rail network in any regional Australian city and is part of managing the enormous growth that has occurred on the Coast.

“These major tenders confirm the project will be delivered and we will build a transport network that will take 75,000 cars off Gold Coast roads when it is completed in 2014,” she says.

“This will provide a fully integrated public transport system and a more affordable and reliable alternative to car travel for all Coast residents, boosting public transport use from 4 percent to 10 percent.

“Let me be perfectly clear – it is full steam ahead for rapid transit. It is becoming a reality and that’s great news for the Gold Coast.”

Albanese says the project is part of the Rudd Government’s unprecedented $37 billion investment in transport infrastructure.

“Our record investment is aimed at building more sustainable communities, a more productive economy and supporting the economic recovery,” he says.

“This project ticks all the boxes – it will slash greenhouse gas emissions 114,000 tonnes within its first decade of operation and generate more than 6,300 direct and indirect jobs for locals.

“After a decade of neglect, the national government is now back in the business of building our cities, and these tenders show we are serious about better infrastructure for the Gold Coast.”

Bligh says the road-works package will be delivered using a competitive early contractor involvement (ECI) approach.

“The project team has identified two government-funded packages valued at approximately $110 million that will lay the foundations for the future light rail system,” she says.

Advertising for the two road works will commence over the next week with the packages divided geographically into two areas: road works north (Southport); and road works south (Broadbeach).

The works would include road widening, the relocation of public utilities and accommodation works such as the reinstatement of driveways, fencing and car parks.

“These works are vital in preparing the stage one corridor for the laying of the light rail tracks and the construction of stations which will be conducted by the appointed operator from 2012-2014,” Bligh says.

“We are seeking Main Roads pre-qualified and experienced contractors to bid for the road-works packages and I would encourage all interested contractors to visit the e-tenders website www.tenders.qld.gov.au for more information.”

According to a new poll by PRDnationwide, 61 per cent of Australians would access equity in their property to fund another investment, while 23 per cent said they would use equity to complete renovations.

PRDnationwide research director Aaron Maskrey said investors were feeling more wealthy and prosperous since the global financial crisis has passed.

“According to the Australian Bureau of Statistics, the total spend on housing financial commitments compared to the previous year, has increased by 10.1 per cent from $19.2 billion,” Mr Maskrey said.

“Investors have strengthened with $6.4 billion being committed in January, the highest amount of investor commitment since February 2008. Investors now account for 30.4 per cent of the total housing finance commitments,” he said.

“With a current nationwide shortage of homes putting upward pressure on prices once again – the idea of accessing equity is becoming more popular.”

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

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.

SUNLAND Group has flaunted its financial strength yesterday emerging as the $28 million buyer of the residential and marina precinct at Royal Pines Resort.

It is the Q1 developer’s first Gold Coast property deal since last November and it has indicated further acquisitions are on the horizon.

The purchase comes as fellow Gold Coast developer Jim Raptis shrugs off allegations he could not afford to renew his building licence.

The Chevron Renaissance developer said the group no longer needed the Building Services Authority licence, indicating ‘other parties’ would take over construction of the Hilton Hotel as it concentrates on paying back an immediate debt of $300 million.

Last week, The Bulletin revealed Mr Raptis, who has four companies in receivership, was in talks with construction giant Brookfield Multiplex to take over the proposed Surfers Paradise development.

It is understood a deal is close to being finalised.

While the global credit crunch has seen many developers tighten belts, sell assets and move to pay back bad debt, Sunland said it was well-placed to take advantage of major sales.

The group bought the 19ha lot at Ashmore, adjacent to the RACV-owned resort tower, from US funds manager Morgan Stanley.

It plans to transform the waterfront site into a medium-density community with an end value of $200 million.

The group, which also developed Circle on Cavill, said the buy represented the start of its ‘counter-cyclical investment strategy’.

It said its strong balance sheet enabled the group ‘to acquire premium assets that would strengthen the pipeline and profitability in the future’.

Sunland managing director Sahba Abedian said the group’s financial discipline and the disposal of non-core assets over recent years had placed the company in a position where it could react quickly to opportunities.

“The acquisition of Royal Pines is a prime example of such opportunities,” he said.

“We will purchase the site with surplus cash and continue to have significant capacity to benefit from other acquisition opportunities the market may offer.

“Despite the volatility in the global markets, there are still specific property segments which will perform soundly in the medium term.”

He said the group was ‘assessing’ a number of other potential property deals.

“We are being approached almost on a weekly basis with opportunities and over the next 12 months we will be looking to make further acquisitions,” he said.

It is the group’s first foray in the Gold Coast property market this year.

Before that, its most recent buy was a development site at Merrimac for $5 million.

Mark Witheriff, of CB Richard Ellis, said Sunland’s decision to buy the Royal Pines development was, in this market, a ‘massive statement’.

“This is huge in this current climate,” said Mr Witheriff, who sold the property.

Mr Abedian said the group, which also has strong development interests in Dubai, had been eyeing off the site ‘for some time’.

He said the group’s plans for the site, not yet finalised, would be a mix of commercial retail and residential.

The site is 5km from Surfers Paradise and the marina includes 87 wet berths and 65 dry docks.

“Our acquisition enables us to reap the benefit of more than 20 years’ investment in the existing resort and brand, infrastructure, planning and amenities by the original developer,” he said.

The deal also includes the real estate business, Royal Pines Resort Realty.

The site was placed on the market at the same time as the hotel, which was picked up by RACV two months ago for about $60 million.

Mr Witheriff said Morgan Stanley decided to split the Royal Pines offering in order to achieve a higher price.

The US investment giant bought Royal Pines for $44.3 million in 2005 and undertook a $16.9 million refurbishment in 2006.

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.”