• has not previously been sold (that is, they are purchased from the developer); and
• has not been occupied for more than 12 months.

There are no restrictions on the number of such dwellings in a new development which may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).

This category includes dwellings that are part of extensively refurbished buildings where the building’s use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.

A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor’s own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.

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

Workers have reached level 20 of Boulevard Tower, which will eventually stretch 32 storeys into the sky, and have completed four of the five basement levels.

The core structure will hit its full height in May, with the basement to be completed mid-year, ahead of total completion of the tower in late 2010.

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

More than 300 workers are on-site each day constructing Hilton Surfers Paradise Hotel & Residences, with that number expected to peak about mid-year, when up to 1000 workers will be involved directly and indirectly in the construction effort.

THE wraps are off a planned $450 million project tipped to become a bustling gateway to Broadbeach for light rail users.

The transport-oriented development proposed by Gold Coast property veteran John Potter is set to transform the dated retail strip fronting the Gold Coast Highway into a vibrant space servicing locals and tourists alike.

The project will also transform the ‘dead space’ alleyway known as Main Place, sitting between the retail centre and the Phoenician building, into a Melbourne-style laneway featuring cosmopolitan dining and shopping.

The Main Place plan will comprise a tower of up to 50 storeys of residential apartments, a four-star hotel of 173 rooms and office space on the first floor.

While the ground level retail strip will deliver a new dining precinct, Mr Potter said Main Place would retain much of its existing tenancy mix of convenience outlets to service local residents.

Main Place will be alongside one of the busiest stations on the proposed light rail route and will feature an arbour walkway leading passengers to the Broadbeach strip from the tram stop.

One of the key milestones for the project will be Gold Coast City Council approval to extend the underground parking for Main Place beneath the existing service road fronting the centre.

The State Government has ticked off on the carpark, with the council to vote on it on Tuesday.

The parking bid would add about 90 public-access car spaces to the existing 51 and increase the footprint for the project.

Mr Potter said construction would disrupt on-street parking for six months during the two-year building program.

“We’re in a position now where we can create something magnificent for the city, with great facilities and employment,” said Mr Potter, who has been selling assets to focus on Main Place.

“It’s the front door of Broadbeach and it’s a big enough piece of land to create a landmark.”

Mr Potter began buying up shops at Main Place in 2003, initially as an investment.

His company, Potter Group, now owns about two-thirds of the popular shopping strip.

While the remaining southern section will not be developed, Potter Group is planning a uniform pedestrian-friendly streetscape for the entire block to complement the twin-tower Oracle Broadbeach development nearby.

City planning boss Ted Shepherd has given Main Place a tentative thumbs-up.

“I do support it, but I will need to see detailed plans and the officers’ recommendations,” he said.

Potter Group has yet to lodge a development application and a start to construction was not expected until at least 2012.

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.