Chinese deal lifts outlook
A DEAL on a Broadbeach high-rise site is being viewed as evidence that serious Chinese buyers continue to have the Gold Coast in their sights.
A property group from China has paid $5.5 million for a holding on the corner of Alexandra and Mermaid avenues, a short distance from the Gold Coast Highway.
The group, via Australian arm Jun. Xin Oceanscape, plans a 26-level tower with 97 apartments.
The 1055 sqm two-title site is close to a highway-front holding on which another Chinese group, the state-owned Hubei United Development, has approval for Elegance, a $400 million development with 43 and 50-level towers.
James Branch, the Knight Frank Gold Coast agent who handled the Jun. Xin Oceanscape purchase, yesterday said that other major purchases by Chinese groups were “simmering away” under the surface.
“Yes, we have seen a couple of instances where Chinese buyers have tentatively stepped back from deals but not because they don’t have faith in the Gold Coast and its future.
“They are being prudent – they’ve been waiting to see what transpires at the Communist Party’s National Congress this week and what effect that might have on groups wanting to invest offshore.
“In the meantime, we’re still getting healthy Chinese inquiry and some of it looks certain to result in property ventures.”
Mr Branch said he was impressed with how patient and thorough the Jun. Xin Oceanscape principals were over their Broadbeach purchase.
“They did their homework and ascertained that credible Australian developers were active in the area, which gave them confidence.”
The eastern end of Alexandra Ave has been targeted by Gold Coast developer Daniel Veitch for a high-rise project and on nearby Hedges Ave the Sunland Group is planning a luxury 40-storey, $210 million tower.
The properties bought by Jun. Xin Oceanscape are the three-unit Glenara Court lowrise at 26 Alexandra Ave, on the corner of Mermaid Ave, and the neighbouring No. 28, a two-level house.
The company is seeking development approval for a project that would have parking on the ground floor and two basement levels, a mezzanine floor for resident services and manager’s units, 23 floors of apartments, a penthouse level, and a rooftop recreation area.