PPB Advisory has set up a new real estate business on the Gold Coast and is betting on a surge of activity within the next nine to 12 months.
The group’s new office will be headed by former EY property partner Garry McLean and has already attracted major clients such as listed residential developer Sunland.
“We have several clients investing in the region and we are seeing increased levels of investment for land and apartment sites,” Mr McLean said.
“What you are starting to see happen in Brisbane now, you will see happen on the Gold Coast in the next nine to 12 months,” he said.
Already this week China’s richest man, Wang Jianlin, publicly committed to investing $HK12.5 billion ($1.7 billion) in Australian real estate, with his first play being the construction of a $900 million beachfront resort called The Jewel on the Gold Coast.
“The Gold Coast is one of the most active real estate markets in the country and is internationally recognised by overseas investors, so if you are advising in real estate you need to have a presence on the Gold Coast,” Mr McLean said.
Other major offshore players that have become involved in the Gold Coast market in the past six months with a variety of real estate development plays, include the China-based Sanbano Group, Chinese company Xi’an WenHua Industrial, Singaporean Ho Bee Group and the Singaporean Banyan Tree.
“I think what we do know is that it does take a fair bit of time to get these large projects out of the ground so by the time they are under way the four to six months of premium stock currently available will be gone,” Mr McLean said.
“So we think there will be a shortage of stock before any oversupply,” he said.
Colliers International’s Darrell Irwin said the increased investment from overseas players would spark interest from local and interstate developers as well.
Local groups such as Harry Triguboff’s Meriton and the Abedian family run Sunland have been the first larger-scale developers to react.
Sunland picked up a 4.7-hectare site at Palm Beach on the Gold Coast for $18.4 million in July. It is earmarked for a $136 million apartment development.
Developers are also awakening to the $13.7 billion in infrastructure development either under way or planned on the Gold Coast.