This is the lowest the number has been since about 2004.

The fall is essentially due to a reduction in the number of apartments actually being built on the Gold Coast – with development approvals having gone down continually in recent years and the market remaining reasonably flat.

The latest quarterly report by Colliers International highlighted Surfers Paradise, Southport and Labrador as hot spots in 2010, with house and unit prices set to soar between seven and 10 per cent.

Helensvale, Varsity Lakes, Robina and Tugun, located close to major shopping centres and the Pacific Motorway, also made the list of best buys.

Colliers research director Aaron Maskrey said Gold Coast property prices were set to rise rapidly this year, as the beachside region bounced back in the wake of the global financial crisis.

“After the challenging year of 2009… due to the global economic conditions impacting on the Gold Coast property market, hot spots for 2010 will focus on areas where recovery will most likely thrive,” he said.

But property analyst Michael Matusik said the price recovery on the Gold Coast could be limited, as the market had performed as poorly as expected in 2009.

“The Gold Coast market, and in particular Surfers Paradise, has been getting a caning of late,” Mr Matusik said.

“There is no question that the Gold Coast is doing it tougher than the rest, with our data [which is based on cleaned up resales] showing that apartment values fell nine per cent during 2008 and a further four per cent last year,” he said.

“According to the latest Queensland government valuations issued in March, ocean-front land has fallen by 30 per cent on the coast.

“But ocean-front apartment values in Surfers Paradise at least actually rose last year – up by 8.9 per cent.”

Mr Maskrey said the property compass has pointed towards suburbs to be serviced by the Gold Coast’s planned Rapid Transit System, although the first stage of the $949 million project is not due to be completed until 2014.

Median prices in each of the listed hot spots ranged from $320,000 for units to $515,000 for houses at the end of 2009 according to the report.

But Mr Maskrey said the completion of the Rapid Transit System and developments in Surfers Paradise, including the Soul and Hilton towers, could soon see property prices jump up to 10 per cent as local residents are attracted back to the tourist hub.

However, local buyers will face competition from foreign investors.

During December and January, the Juniper Group reportedly secured seven sales amounting to $10 million at its 77-storey, $850 million Soul development in the heart of Surfers Paradise, for Chinese, Indonesian and New Zealand investors.

Overseas buyers injected $407 million into the state’s residential market last financial year, of which 45 per cent was spent on the Gold Coast.

Mr Maskrey said first-home buyers may find better value for money in Helensvale where townhouses and units were priced in the $300′s.

“Helensvale is home to a Westfield Shopping Centre and has easy access to the M1 and a railway station,” he said.

After an uncertain year, the latest Real Estate Institute of Queensland (REIQ) median sales data shows a return to form for the State’s property market.

“We are cautiously optimistic that the worst is behind us. These really are solid results in what have been very weak economic conditions,” REIQ managing director Dan Molloy said.

The REIQ June quarter median house prices show sales volumes up significantly in many areas.

Compared to the March quarter, preliminary sales numbers are up about 28 per cent in Brisbane; about 17 per cent on the Gold and Sunshine coasts; 14.5 per cent in Rockhampton; 20 per cent in Townville; and about 18 per cent in Cairns.

Bundaberg was the top performer of any Queensland major centre over the June quarter with a very healthy 6.8 per cent median house price increase to $283,000. Logan also performed extremely well over the year to post a 9.7 per cent median price increase to $340,000.

“Bundaberg and Logan has both benefited from having a variety of stock available – from affordable homes for first home buyers to mid-range properties attractive to up-graders,” Mr Molloy said.

While first home buyers have remained active over the quarter, there has been increased demand from up-graders and investors who are equally keen to take advantage of the current market conditions.

“The low interest rate environment, stable prices and rising consumer confidence have certainly spurred market activity,” Mr Molloy said.

“And while median prices have risen in many areas over the June quarter, prices have either regained any ground lost over the past year or found their new level.”

First home buyers represented about 25 per cent of the Queensland property market in June, up dramatically from just 14 per cent a year ago. First home buyers are likely to return to their historical average of about 20 per cent once interest rates move from their current low level.

Strong underlying demand from an increasing population and comparatively affordable property prices – especially in regional areas – are likely to continue to underpin the State’s property market over the year ahead.

REIQ figures show about 78 per cent of house sales across Queensland were for properties under $500,000 in the June quarter, down from 81 per cent the previous quarter.

Infrastructure and Planning Minister Stirling Hinchliffe said the South East Queensland Regional Plan 2009-2031, released today, would ensure future growth is managed sustainably to protect the coast’s unique natural environment and lifestyle.

“This plan strikes a balance between population growth and the need to protect the lifestyle that residents of the coast value and enjoy by guiding development patterns over the next two decades,” Mr Hinchliffe said.

“It responds to the key issues facing the south east region, including continued high population growth, traffic congestion, koala protection, climate change and employment generation.

“Crucially, this is a plan to manage growth, not just accommodate it.

“South East Queenslanders have been very clear they want us to protect their open spaces. They simply won’t accept urban sprawl that eats away at the region’s green lungs and impacts on our enviable way of life.”

Mr Hinchliffe said the population of the Gold Coast was expected to increase to 749,000 from the current 466,500 by 2031 – a 60 per cent increase.

“This will require the designated urban footprint to accommodate an estimated 143,000 new dwellings through a combination of infill and broadhectare development,” he said.

“This equates to 19 per cent of the new dwellings needed across South East Queensland, which has been reduced from 22 per cent of new dwellings forecast in the previous plan – easing the development pressure on the coast.

“Infill development predominantly around Southport, Robina, Surfers Paradise, Broadbeach, Coolangatta, Nerang, Helensvale and Bundall will cater for up to 97,000 of these, while broadhectare developments in areas such as Coomera, Hope Island, Pimpama, Ormeau, Maudsland and Reedy Creek are expected to accommodate 32,000 dwellings.

“Overall, settlement patterns will be conducive to good environmental management and will protect key areas such as the Green Heart, the Spit, the coast’s world-famous beaches and hinterland.

“To support this, development will be concentrated around transport hubs, while densities will be at least 15 dwellings per hectare in order to efficiently use land and infrastructure.

“That’s why the Gold Coast Rapid Transit project is so important and infrastructure such as this is crucial to our plan to protect the Gold Coast lifestyle that is the envy of Australia.”

Minister Hinchliffe said the plan would also ensure employment growth would support the expected population increase.

“Historically, the Gold Coast’s economy has been linked to tourism and recreation industries, however, it has diversified and comprises significant commercial, retail and industrial areas, as well as specialist health, education and technology hubs,” Mr Hinchliffe said.

“The coast’s Principal Activity Centres at Southport and Robina are expected to expand their roles as commercial, retail, administrative and specialist centres and evolve into integrated, mixed-use centres.

“Tourism will continue to be a significant economic driver, while the local marine industry will grow through an expansion of the Gold Coast Marine Precinct at Coomera and the proposed establishment of a marine industry precinct at Steiglitz.”

Mr Hinchliffe said mitigating the effects of climate change and protecting the region’s koala habitat were also key elements in the plan.

“South East Queensland is one of Australia’s biodiversity hotspots and is renowned for the quality and diversity of its natural environment. The region is home to rich native flora and fauna as well as the largest urban koala population in Australia” he said.

“Overall, this is a plan to ensure that South East Queensland is managed in a sustainable way by reducing the region’s ecological footprint while enhancing its economy and the quality of life of residents.

“The plan will help to protect biodiversity, contain urban development, build and maintain community identity, reduce car dependency and support a prosperous economy.

“In future, our communities will be built and managed using contemporary measures to conserve water and energy and featuring buildings designed to take advantage of our subtropical climate.”

For more information on the regional plan visit www.dip.qld.gov.au or freecall 1800 070 609.

The REIQ March quarter median unit and townhouse prices show not only steady prices in most areas but also modest increases in sales numbers.

Demand from first home buyers continues to underpin this segment of the market.

“Units and townhouses are remaining popular due to their affordability and because they are often more centrally located,” REIQ chairman Peter McGrath said.

Sales numbers were up in Brisbane and on the Gold and Sunshine coasts particularly, while median prices were on the increase in Townsville, Mackay, Gladstone and the Sunshine Coast.

While the top end of the residential house market has struggled over recent times, there are signs that this segment of the unit and townhouse market is showing signs of life, particularly on the Gold Coast.

“The top end of the market is becoming increasingly popular as buyers take advantages of some good opportunities,” he said.

Units and townhouses in prime Gold Coast waterfront suburbs such as Broadbeach, Burleigh Heads, Tugun and Surfers Paradise all recorded very healthy median price increases over the period.

“These waterfront locations have staged a comeback. There has been a good volume of sales in response to some very good buying opportunities,” he said.

“This segment of the unit and townhouse market has adjusted to the market conditions and is certainly reaping the benefits.”

Over the March quarter, 2.3 per cent of all unit and townhouse sales in Queensland were for more than $1 million compared to 1 per cent of all house sales on land less than 2,400sqm over the same period.

Currently first home buyers with vacant land valued at up to $150,000 are exempt from the transfer tax but that will be increased to $250,000 from July 1.

There will also be concession for land worth up to $400,000.

But the savings could be eaten up if home buyers are hit by another $5000 per lot by developers when the Government scraps infrastructure subsidies for them.

It is reported that the State Government looks set to scrap its infrastructure charges subsidy of 40 per cent for water and sewerage charges which would force developers to pass on the extra costs to home buyers.

The new stamp duty exemptions for first home buyers offer savings of:

* $1050 for land worth $175,000.

* $2675 for land worth $200,000.

* $4050 for land worth $225,000.

* $5675 for land worth $250,000.

The tax break comes on top of last year’s abolition of stamp duty for first home buyers purchasing established houses worth up to $500,000.

It also sits alongside federal first-home buyers’ grants which have helped prop up the property market.

But there are concerns the payments and tax breaks going to first-home buyers are stopping house prices falling to an acceptable level after years of inflation.

On the Gold Coast, houses and apartments stabilised in the March quarter for the first time in months, largely thanks to first-home buyers.

Meanwhile, in keeping with the State Budget’s ‘job-generating infrastructure’ theme, $1.4 billion was put aside for 4000 new public houses in the next three and a half years.

Treasurer Andrew Fraser said the Government was making the ‘largest injection into public housing in the state’s history’. He said Queensland was leading the way in its help to first-home buyers.

“Our reforms are directly aimed at stimulating the housing sector. And housing construction means jobs, apprenticeships and traineeships,” he said.

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

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.