Wary Asian investors keep Coast guessing
MORE than $20 billion worth of development projects linked to Asian developers have either stalled or been canned in just five years.
The slowdown of the economy, increased lending restrictions and now the COVID-19 pandemic have been blamed for putting a dampener on what was once seen as a financial wave the Gold Coast would be able to ride well into the 2020s.
Of the billions of dollars of projects pitched for the Gold Coast by overseas investors in recent years, just a handful have gone ahead including Ridong’s $1.2 billion Jewel towers at Surfers Paradise and the under-construction Dorsett tower at Broadbeach from Star Entertainment Group and Far East Consortium.
Gold Coast Mayor Tom Tate, who has travelled to China many times during his eight years in office, said growing political tension between the two countries would make further investment difficult.
“The political pointscoring between Australia and China has not helped,’’ he said.
“But I will do my best to mend local bridges. Post COVID-19, everyone will be welcome. That’s what we Gold Coasters do.”
The Chinese Government’s crackdown on overseas investment was a major factor in the slowdown, as was lending restrictions instituted in the wake of the Royal Commission into banking.
As a result, ambitious projects were shelved, including Forise’s 89-storey, $1.2 billion Spirit supertower whose developer was forced to sell the site and withdraw from the Australian market.
Some projects, including ASF’s controversial Wavebreak Island and Spit integrated resorts, were knocked back by the state government and council. Others were approved but never built.
Among the projects still on the agenda is Songcheng’s proposed $600 million Australian Legends World theme park at Carrara. First pitched in late
2016, its development application was submitted to
Gold Coast City Council in mid-2017 but has never made it to a planning committee meeting.
It is understood the developer has slowly been working through a myriad of concerns relating to flooding as well as the theme park’s impact on the proposed Coomera Connector, which will neighbour it.
Leading real estate agent Roland Evans said Songcheng still intended to proceed.
“Songcheng have resolved the issues with flood mitigation and DTMR over the past two years,” he said.
“Obviously, they are mindful the residents in the area are a bit anxious of its impact so
WE ARE AWAITING THE RIGHT OPPORTUNITY AND TIME TO MOVE THIS PROJECT (THE AU TOWER) FORWARD
ASF DIRECTOR LOUIS CHIEN
have turned that whole thing around.
“When it will be? Well, I don’t know. Of course there are a lot of things in play at the moment which are slowing things up, none of which we can do much about it.”
While Mr Tate remained hopeful of Songcheng building its theme park at Nerang, he was not optimistic.
“I know (Songcheng) were ready to go and they don’t want to say they don’t want to do it but the foot is off the pedal,” he said.
“I understand something has happened outside of my control.
“I am hoping they will come back to the table and if they look long-term it will be clear we have not changed.”
ASF, which had two projects worth a combined $10 billion knocked back by the state government, still has significant property holdings on the Gold Coast and approved development applications on a number of sites.
Its most ambitious project is The AU, a giant $600 million high-rise residential development on the corner of Southport’s Scarborough and Queen streets.
With a 66-storey supertower as its centrepiece, the project is among the most distinctive developments pitched during the Chinese wave.
But despite gaining approval in 2017, work has not begun.
ASF director Louis Chien said on Friday that the Sydney-based
consortium retained an interest in building on the Gold Coast.
“We are awaiting the right opportunity and time to move this project forward,” he said.
“ASF is constantly evaluating its options.”