Chinese buyers are back and on a Queensland spending spree

Chinese buyers have returned to south east Queensland in droves, ready to drop their millions on the region’s most expensive homes.

Kollosche Prestige agent Jordan Williams says Chinese buyers, who reportedly spent $60 million on Gold Coast property in the space of 10 months last year, are back in force.

“There’s been a massive insurgence of Chinese buyers here in the last two weeks especially,” he says.

“They did go quiet there for a few months because of the changes to the FIRB (Foreign Investment Review Board) rules but they are back now and making a renewed push in the market.”

May’s federal budget slugged foreign buyers with steeper charges on purchases and new fees on property left vacant for six months or more. These measures were taken after the FIRB annual report revealed Chinese buyers led a 19 per cent jump in residential applications, equating to a peak of proposed investment worth $72.4 billion for the 2015-16 financial year.

But the lull has lifted as quickly as it began, with an architect-designed mansion on the waterfront at Cronin Island just exchanging for $6.95 million, purchased by a FIRB-approved Chinese buyer.

In Brisbane last week, a Chinese buyer paid $7 million cash for an acreage property at Calamvale after only one week on the market. It was the biggest sale in the suburb’s history and eclipsed every other sale in Brisbane for that week by nearly $5 million.

This weekend, Mr Williams is auctioning a luxury property for the very first time since he and partner Michael Kollosche opened their doors for business 18 months ago.

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Owned by logistics king John McPhee and his wife Yvonne, the house is set on the waterfront in one of Surfers Paradise’s most sought-after — and rarely available — streets, at 105 Stanhill Drive.

Traditionally an advocate of private treaty sales, Mr Williams says the unique position, coupled with the fast pace of the Gold Coast prestige market, called for a different approach.

“With a property like this, it was very difficult to ascertain a price. It’s such a rare position, facing north, set in a triple junction on the river, with long water views,” he says.

“The last time this property was available for sale was 18 years ago — the Gold Coast property market has changed a lot since then and right now it’s performing better than most every other market in the country.

“We will only auction a property when we think it’s unique enough and is likely to attract multiple offers.”

Domain Group chief economist Andrew Wilson says the Gold Coast has now surged ahead of Brisbane and the Sunshine Coast.

“It’s clearly out on its own … We’ve got the Gold Coast up around about 8 per cent on a year-on-year basis at the moment, while Brisbane and the Sunshine Coast are about 4 to 5 per cent,” he says.