Andrew Bell’s Market Wrap: What About International Buyers?

Issue 23 | Thursday, October 8th 2020 | What About International Buyers?

Hi, Andrew Bell coming to you today from this brand-new home in such a rare and unique position on the Gold Coast. Perched on top of one of our rare, elevated hills and right by the ocean, namely the famous Currumbin Hill. This home is situated right next door to over 20-acre reserve full of some of Australia’s best natural wildlife. It is remarkable to say the least. Apart from the stunning views that stretch from Currumbin Alley across the entire Gold Coast to South Stradbroke Island, the home is built to superbly blend into the environment and cleverly captures separated living zones with 5-bedrooms and an awesome living space with several open verandas taking in the breathtaking outlook. One additional rare and great feature is a completely separate self-contained dwelling that is ideal for so many uses, including some extra income.  

The Gold Coast has always relied on three market components. Demand from our local buyers, demand from our interstate buyers, and demand from overseas buyers.

In recent months I have addressed what has happened with our local buyers and the strong activity as people redesigned their housing needs as a result of COVID-19. It is well publicised what is happening with strong interest from interstate buyers seeing the Gold Coast as an ideal location to relocate to escape the higher risks of high density, urban living. However, little attention has been given to the international market.

What we do know is that our borders are closed and in markets such as Surfers Paradise we aren’t seeing the streets full of overseas visitors as we have been accustomed to for well over thirty years. Most people have just presumed that there is not an international market at present and with our borders likely to be shut perhaps for all of next year, or at least most of it, it would be easy to just disregard the overseas market altogether.

I am strongly of the belief that we are already seeing signs of it now that our international markets will come back stronger than ever. People all over the world understand that higher risk locations for a pandemic are high density population areas. Big cities. There are also many people from around the world who are totally disillusioned with how their Governments have handled COVID-19 and believe not only is there a risk of COVID-19 perpetually in these countries but they can see they won’t be able to handle any other inevitable pandemic outbreaks. These people are looking to where they could relocate and countries such as Australia and New Zealand are very high on that wish list.

It is no surprise as Australasia’s largest real estate company that we have been fielding strong enquiry from people in their research mode. Largely high wealth people who can afford to buy a property here in Australia to spend a good part of the year living, and certainly have a safe haven should any health concerns surface as is inevitable in the years ahead. I will use Hong Kong as an example. Not only is it a high density population base that is one of the riskiest COVID-19 areas but recent activities by the Hong Kong Government have made people aware that their civil liberties are being eroded and many of them now want to completely relocate themselves and their wealth out of Hong Kong. As a result, next week we are holding the first of our virtual Hong Kong seminars. Instead of traveling over there and booking out a hotel ballroom to present, we will present via Zoom which will be viewed from lounge rooms and offices of a huge number of Hong Kong residents. This will be the first in a series of promotions of the Gold Coast that we are doing to key population bases around the world so as to continue to generate a good buying support for the Gold Coast property market.

We believe the Gold Coast is a compelling market for many of these high wealth clients and we love the fact that as usual we are pioneering these concepts in order to give a strong platform in the Gold Coast property market no matter what the economic effects of COVID-19 may deliver.

It is pleasing to see that the Foreign Investment Review Board Chairman, David Irvine AO is proposing a new system that gives approved foreign buyers a regulatory fast pass. They identify the need to loosen Government blockage that often happens when bureaucracy gets caught up in process rather than being inviting and encouraging to these significant financial contributors to our economy.

Watch this space. We have applied huge technology to making it easy for foreign purchasers to buy sight unseen which we are confident so many will. You can only imagine what will happen when our borders open and people are able to travel here and where we will be seen as one of the safest countries to travel to in the foreseeable future. Well, isn’t this home at 7 Katta Avenue remarkable. Never to be built out views, one of the most private streets I have ever seen on the Gold Coast, and in the now treasured jewel of the southern precincts of the Gold Coast. For more information contact our Ray White Prestige representative, Jackson Paradise who will be delighted to assist you.

We have a very strong spring selling season at present. Not only of course in private treaty sales but strong competition among bidders at auctions which has seen some incredibly high sale prices. Success on auction day has been ticking over around record levels of 70% odd and with most of the remaining properties selling in the short period immediately following the auction.

It is a great time for sellers but as we enter 2021 we are likely to see a lot more properties coming to the market so right now is certainly a market environment that sellers should take advantage of.

Well, here we are a week into October and it of course reminds us that we are only 11 odd weeks until Christmas and one can only suspect we are going to have one very full house of visitors here in January. The welcome sign is up and we look forward to seeing Australians from all over the country free to travel here.

I look forward to being with you in a fortnights time.

Warm Regards,

Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group

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