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.