Queensland's Gold Coast draws investors

Queensland's Gold Coast draws investors

By Dewi Anggraeni

MELBOURNE (JP): If you asked 10 people who knew about
Australia, in particular the state of Queensland, what the name
Gold Coast conjured up for them, six would say: "Tourism and
property"; and the rest: "Property and tourism."

The Gold Coast is indeed the tourist capital of Australia.

In 1997 alone, 3.9 million tourists visited the area. If that
makes you wonder how the Asian economic crisis will affect the
numbers, it is important to note that 2.7 million were domestic
visitors, while 73,000 came from North America, 98,000 from
Europe, 142,000 from New Zealand, and 16,000 from various places
other than Asia.

That still leaves almost one million people who come from
within the region.

According to Gold Coast Tourist Bureau, Japan accounts for the
biggest number of Asian tourists, 393,000; followed by Korea
134,000; Taiwan 111,000; Singapore 88,000; Hong Kong 48,000;
Indonesia 34,000; Thailand 23,000; China 23,000; and Malaysia
22,000.

The projected growth from many of these countries is still
optimistic, but with a significant drop expected from Korea,
Indonesia, Thailand and Malaysia.

Based on the above figures, even the most pessimistic outlook
would still place the Gold Coast in the upper ranks of tourist
destinations.

And the local government works hand in hand with the tourist
bureau to keep it that way.

The Gold Coast, it seems, received providence's preferential
treatment from the very beginning.

The weather is extremely pleasant, even on its hottest day of
31 degrees Celsius, and cool sea breezes blow in at merciful
intervals. You are never very far from water in this place, be it
the sea or the river, so there is always relief from the heat.

On most days the temperatures hover about 23 degrees to 25
degrees and the air is clean and clear.

It is host to such a variety of entertainment that even a
visitor in a bad mood could not help but be amused.

If the brightly colored shops and restaurants in the Surfers'
Paradise Center fail to lift your spirits (presuming you are
feeling low), try going to one of the theme parks.

Step into fantasy at Warner Brothers Movie World, for
instance, and let yourself be deceived into thinking that you
are part of a rescue mission in the Batmobile, traveling hither
and thither at breakneck speed, crashing into burning buildings,
chasing strange-looking creatures resembling marine birds and
clowns, to be eventually ferried back to the Bat Cave, safe but
dazed.

If that does not shake your bad mood, then take a spin on the
Lethal Weapon ride, where you are hurled and twirled horizontally
and vertically, now falling, now hanging, and may end up wearing
your lunch or afternoon tea.

And if that does not make you appreciate living again, then
you may want to try reintegration with nature at Couran Cove
Resort on South Stradbroke Island, a 30-minute boat ride from
Surfers' Paradise.

Property

In this resort everything, including the buildings and sport
facilities, are being built to blend in with the natural
surroundings, with ecological balance being the main
consideration. While still under construction, visitors have been
inspecting the progress and about two-thirds of the cottages and
lodges have already been sold.

Keeping visitors entertained and happy is an important
business, since the Gold Coast is also where people like to
entrust their money.

Investments in property have not slowed. In January, Crown
Towers began selling luxury apartments on top of its newly built
five-star hotel and US$7 million change hands in the first five
days.

Buyers spent $320,000 to $420,000 for an apartment which is
considered a safe investments because they can be leased back to
the hotel to be hired out to rich tourists or executives who
travel with their families.

Hudson Conway, the developer of Crown Towers, guarantees a net
return of 6 percent in the first year, 6.5 percent the second
year and 7 percent the third year.

And it is not the only developer of properties on the Gold
Coast. High-rise sumptuous hotels and apartments go up at a
fantastic speed wherever one turns.

If opulence and sumptuousness are not your cup of tea, no need
to despair. There are marginally more modest houses or townhouses
you may want to invest in. The prices ranging from $120,000 to
$150,000.

Nyoman Sutantra (not his real name), a Balinese businessman
now residing on the Gold Coast, recounted to The Jakarta Post the
enduring value of the area's real estate.

He and his Australian wife came to the coast in 1991 and
bought a 1,000-square-metre block of land 10 minutes drive from
the center of town where they built their three-bedroom house.

The house and land package cost them $125,000. They also
bought a townhouse nearby for $68,000, which they rent out.

"The townhouse is hardly ever vacant," Sutantra said.

While it may not be worth more than $84,000 if they tried to
sell it now, the townhouse has been an easy and steady source of
income for the couple.

Sutantra estimated that the house would be worth $150,000 but
it was not for sale.

"It is a good place for long-term investment, not for wild
speculation."

He told the Post there were about 300 Indonesians living on
the Gold Coast, all owning properties valued at various prices.
Many, like himself, are from Bali.

"We even have our own banjar (neighborhood organization)," he
said proudly.

Paul Brinsmead, a lawyer from the Hickey Lawyers firm, agreed
that Gold Coast properties were a steady source of investment.

Representing most of the big and medium investors from all
over Asia, Hickey Lawyers has at least four major and 25 minor
investors from Indonesia.

Brinsmead's profile of a major Indonesian investor projects a
businessperson, most likely from Jakarta, who has between $7
million and $11 million to invest.

He usually buys a building containing 10 units to 15 units of
residential apartments in a good location on the Gold Coast's
tourist strip.

He then operates it as a hotel or accommodation house with a
guaranteed 7 percent to 8 percent return. He employs a hotel
manager who is paid a salary of approximately $50,000 per year,
with a rent-free apartment thrown into the deal. All this is
operated as part of the investor's company.

More modest clients from Indonesia invest between $140,000 and
$280,000 and buy single apartments on tourist strips such as
Surfers' Paradise and Broadbeach.

"People have continued to buy properties here because of its
safe political environment," Brinsmead said.

And with the bulk of property buyers and tourists coming from
other parts of Australia, there is little potential for wild
fluctuation in investment values.