Transcript of "Queensland foreign investment research forecast report l second half 2011"
Second Half 2011 | RESIDENTIALResearch & Forecast Reportqueensland foreign investment China Dominates Foreign Spending Across Queensland For the third consecutive year, purchases of residential property in Queensland by foreign buyers declined. Worldwide economic conditions and the strong Australian dollar have contributed to overseas buyers easing back slightly on their spending on residential property across Queensland. The graph below indicates the peak spending during the 2007/08 financial year with a figure ofSurfers Paradise skyline $620.8 million across 1,495 transactions followed by a significant decline of around 34% theThe Gold Coast was the favourite Queensland location following year. The 2010/11 financial year saw spending ease back slightly on the previous yearfor foreign buyers during the 2010/11 financial year. to record a total of $334.2 million over 733 individual transactions. As with the overall residential property market, the volume of property transactions to foreignKey Facts buyers softened during the year. A total of 733 separate residential property deals were undertaken across Queensland, 112 less than the previous year. Of these 733 transactions, 69% were for• Total foreign investment in Queensland investment purposes while the remaining 31% were for owner occupation. residential property during the 2010/11 financial year amounted to $334,239,068. For the second consecutive year, China was the largest overseas buyer of residential property in• The largest foreign buyers of residential Queensland, spending a total of $106.8 million across 203 transactions which equates to almost property in Queensland during the one third of the Queensland total. 2010/11 year were from China, spending $106,798,735. The Gold Coast has been the favoured locality for foreign buyers of residential property since we• The Queensland Local Authority which began monitoring figures and this year is no different. A total of $165.3 million was spent on the received the most foreign spending Gold Coast during the 2010/11 financial year. for 2010/11 was the Gold Coast with $165,309,830. Queensland Residential Property - Total Foreign Investment Queensland Residential Property - total foreign investment• 69% of property purchased in Queensland $650 Total value $millions by foreign buyers was for investment $600 purposes. $550• Over the last ten years, buyers from $500 the United Kingdom have spent the $450 largest amount on residential property in $400 Queensland, followed by New Zealand. $350 $ millions $300 $250 $200 $150 $100 $50 $0 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Financial Years Prepared by: Colliers International Research Source: Department of Environment Resource Managementwww.colliers.com.au/research
research forecast report | SECOND HALF 2011 | RESIDENTIAL | Queensland Market Activity by Nationality China top foreign spenders for second year For the second consecutive year, China has emerged as the largest buyer of residential property across Queensland. Spending by China increased almost 50% on figures from the previous year. During the 2010/11 financial year $106.8 million of Queensland property was purchased by Chinese nationals across 203 transactions. This compares to $71.5 million the previous year andBroadbeach, looking towards Surfers Paradise. is the largest amount spent in a single year by Chinese buyers.China were the largest buyers of residential propertyacross Queensland with the Gold Coast being their Over the last ten years, China has spent a total of $366.3 million on Queensland property, the latestfavourite local authority. annual figures recording almost one third of that figure. The Gold Coast was China’s preferred Local Authority during the 2010/11 year where they spentKey facts a total of $66.9 million followed by Brisbane with $30.4 million and Logan $4.8 million.• The largest foreign buyers of residential 77% of property transactions by Chinese nationals in Queensland were for investment purposes, property in Queensland during the whilst the remaining 23% were for owner occupation. 2010/11 year were from China, spending $106,798,735. United Kingdom comes in second behind China• Almost one third of China’s total spend over the last ten years occurred during the Buyers from the United Kingdom purchased $30.5 million worth of residential property across 2010/11 financial year. Queensland making them the second largest foreign buyers during the 2010/11 year.• 77% of property purchased in Queensland by Chinese foreign buyers was for For the third consecutive year the Sunshine Coast is where United Kingdom buyers prefer to investment purposes whilst the remaining purchase property, spending a total of $6.5 million followed by the Gold Coast where they spent 23% was for owner occupation. $6.4 million and Brisbane $6.3 million.• Buyers from the United Kingdom were Queensland Residential Property the second largest buyers of residential foreign investment by country 2010/11 Queensland Residential Property - Foreign Investment by Country 2010/11 property in Queensland, spending a total of $30,512,428. OTHER 21%• Over the last ten years, buyers from the United Kingdom have spent the CHINA 32% largest amount on residential property in Queensland, followed by New Zealand. RUSSIAN FEDERATION 3% TAIWAN 3% SINGAPORE 4% MALAYSIA 4% UNITED KINGDOM 9% SOUTH AFRICA 5% USA 5% NEW ZEALAND JAPAN 8% 6% Prepared by: Colliers International Research Based on $ value of total transactions Source: Department of Environment Resource Management Colliers International | p. 2
research forecast report | SECOND HALF 2011 | RESIDENTIAL | Queensland Market Activity by Local Authority Gold Coast remains top foreign investment location Half of the total amount spent across Queensland by foreign buyers was transacted on the Gold Coast making it once again the favoured locality. A total of $165.3 million was spent across 310 transactions. In line with the overall Queensland figures, spending on the Gold Coast eased over the year by around $8 million.Brisbane city skyline Brisbane was the second most favoured local authority The Chinese were the most prolific foreign buyers of Gold Coast property spending a total of $66.9 million orfor foreign buyers of Queensland residential property. 40% of the total amount spent during the 2010/11 financial year. This is an increase of 128% on the previous year when $29.3 million was spent on the Gold Coast by Chinese. This is also the largest amount spent by Chinese buyers in a single year since we began to monitor foreign investment figures.Key facts Following China was Japan with a total spend of $14.4 million over 30 transactions. New Zealand followed with• Once again, the Gold Coast was the favoured a total of $11 million across 21 transactions and Russian Federation amounted to $9.7 million over 15 transactions. Local Authority for foreign buyers across Queensland. Total foreign investment on Of the 310 residential property transactions that took place during the 2010/11 financial year on the Gold Coast, Gold Coast residential property during 229 (75%) were purchased for investment purposes and the remaining 81 (25%) were for owner occupation. the 2010/11 financial year amounted to $165,309,830. Total spending by foreigners on Gold Coast property over the last ten years shows that Japan has been the• The largest foreign buyers of residential largest buyers with a total of $203.4 million followed closely by Malaysia at $201.4 million and New Zealand property on the Gold Coast during the $194.4 million. 2010/11 year were from China, spending $66,965,137. Brisbane second top foreign investment location• 75% of property purchased on the Gold Coast by foreign buyers was for investment Brisbane has been the second most popular local authority for foreign buyers in Queensland each year with the purposes. exception of the early 1990’s when Cairns was the number one location.• Over the last ten years, buyers from Japan A total of $86.2 million was spent across 180 transactions on residential property in Brisbane during the have spent the largest amount on residential 2010/11 financial year. For the second consecutive year Brisbane has gone against the trend of the overall property on the Gold Coast, followed very Queensland figures to record a slight increase from the previous year by approximately $4.5 million. closely by Malaysia and then New Zealand.• Brisbane was the second most favoured China dominated spending by foreigners across Brisbane with a total of $30.4 million over 61 transactions. This Local Authority with spending reaching is the fourth consecutive year that Chinese buyers have been the most prolific foreign purchasers of Brisbane $86,212,033 across 180 transactions. property. Whilst China’s spending increased significantly on the Gold Coast, it declined slightly in Brisbane on• The Sunshine Coast was the third favoured figures from the previous year. Local Authority for foreign buyers who spent $28,279,154 million over 58 transactions. Of the 180 residential property transactions that took place during the 2010/11 financial year across Brisbane, 115 (61%) were purchased for investment purposes and the remaining 65 (39%) were for owner occupation. A larger majority of transactions in Brisbane were for owner occupation than other Local Authorities across Queensland. Queensland Residential Property Queensland Residential Property - Foreign Investment2010/11 foreign investment by Local Authority by Local Authority 2010/11 MACKAY WESTERN DOWNS 1% 1% OTHERS LOGAN 3% GLADSTONE 2% 1% IPSWICH 1% MORETON BAY 2% CAIRNS 4% SUNSHINE COAST 9% GOLD COAST 50% BRISBANE 26% Prepared by: Colliers International Research Based on $ value of total transactions Source: Department of Environment Resource Management Colliers International | p. 3
research forecast report | SECOND HALF 2011 | RESIDENTIAL | QueenslandOutlook 512 offices inOver 2012, Queensland is set to remain as a strong investment opportunity. Stable government, 61 countries onrule of law and transparent accounting practices as well as an enviable quality of life for residentshave continued to underwrite a positive investment track record for the Gold Coast, Brisbane and 6 continentsQueensland generally. In addition, national monetary policy which is conducted by the Reserve United States: 125Bank of Australia, has begun what appears to be an easing of official interest rate cycle. This Canada: 36means that upside potential for $A appreciation against other currencies may be constrained so Latin America: 18that Australian property assets should not be impacted by exchange rate considerations as much Asia Pacific: 194as they have been during the strong appreciation against the $US during 2010 and 2011. On a final EMEA: 117point, property investment in Queensland should also be encouraged by the substantial investment • $1.5 billion in annual revenue(in the order of $50 billion) in the states mining and resources sector in 2012. This is expected to million square feet under • 978.6have significant economic flow-on benefits throughout the state, generate strong employment managementgrowth and create demand for multiple land uses including residential housing. • Over 12,500 professionals Gold Coast Residential Property Gold COast Residential PropertyInvestment by Country 2010/11 Foreign - Foreign Investment by Country 2010/11 COLLIERS INTERNATIONAL OTHER 13% Level 2, Circle on Cavill, 3184 Surfers Paradise Boulevard MALAYSIA 4% Surfers Paradise, QLD 4217 UNITED KINGDOM tel 07 5588 0200 4% CHINA FAX 07 5668 0690 40% NEW CALEDONIA 4% SOUTH AFRICA RESEARCHER 4% HONG KONG 4% Lynda Campbell Manager | Research SINGAPORE tel 07 5588 0290 5% FAX 07 5668 0690 RUSSIAN FEDERATION 6% NEW ZEALAND JAPAN 7% 9% Colliers International does not give any warranty inPrepared by: Colliers International Research relation to the accuracy of the information contained inBased on $ value of total transactions this report. If you intend to rely upon the informationSource: Department of Environment Resource Management contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. Brisbane Residential Property Colliers International will not be liable for any loss or Foreign Investment by Country 2010/11 brisbane Residential Property - Foreign Investment by Country 2010/11 damage resulting from any statement, figure, calculation or any other information that you rely upon that is OTHER contained in the material. COPYRIGHT - Colliers 14% International 2011. USA 3% CHINA 35% UNITED KINGDOM 7% TAIWAN 9% SOUTH AFRICA 4% PNG FRANCE 4% 5% KOREA NEW ZEALAND 4% 8% MALAYSIA 7%Prepared by: Colliers International ResearchBased on $ value of total transactionsSource: Department of Environment Resource Management Accelerating success. Colliers International | p. 4www.colliers.com.au/research