RESIDENTIAL RESEARCH - Knight Frank
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RESIDENTIAL RESEARCH LIVING ON THE GOLD COAST SCHOOLS & UNIVERSITIES INVESTING IN PROPERTY
Population Queensland Treasury. This projection has
been shown in Figure 1.
The Gold Coast is located in Located in South East Queensland, on
South East Queensland on the
the East Coast of Australia, the Gold
East Coast of Australia. The Gold
Coast LGA covers an area of Coast Local Government Area (LGA) had Age Distribution
1,332 km². an estimated population of 567,700 The Gold Coast LGA residents were
residents in 2016. primarily young to middle aged at the
time of the last Census in 2011.
The Gold Coast LGA has an When compared to the Australian capital Approximately 34.6% of the population
estimated population of 567,700 cities, the Gold Coast LGA population is was aged between 15 and 39 years old;
residents. ranked in 6th position, behind Greater compared to the national average of
Adelaide and ahead of the Australian 34.2% for this age group. The median
Capital Territory, Greater Hobart and age of the population in the Gold Coast
Gold Coast experiences relatively Greater Darwin. LGA was 37 years, similar to the national
warmer winter weather (mean average. Children aged 0-14 years
minimum temperature of 15°C)
Population has been steadily increasing comprised 18.5% while people aged 65+
than most other Australian capital
cities. Summer months are on the Gold Coast. Over the year to 30 years made up 14.4% of the population.
relatively hot with a mean June 2016, an increase in the estimated
maximum of 25°C. resident population was recorded at
2.2%. This is stronger than the overall
Multiculturalism
Australian population growth at 1.4% The Gold Coast LGA population
On the Gold Coast, the most daily according to the Australian Bureau of comprised 34.8% of people being born
sunshine is nine (9) hours in the Statistics (ABS). outside of Australia, higher than the
month of December. national average of 30.2%.
The Gold Coast population is projected to
grow by 2.1% from 515,200 persons in The most prominent countries of birth
Located in the ‘Sunshine State’
2011, to 866,600 in 2036 as estimated by include New Zealand (8.6%), England
and home to one of the most
renowned natural wonders of the (5.6%), South Africa (1.2%), Japan (0.7%)
world—the Great Barrier Reef. and China (excludes SARs and Taiwan)
at 0.7%. In addition, approximately
Gold Coast Projected Population
Total number of persons, LGA
35.4% of Gold Coast’s residents’ parents
From Gold Coast airport, average were born overseas—slightly higher than
flying travel time is approximately the national average of 34.3%.
900,000
eight (8) hours to Singapore and
eight and a half (8.5) hours to Kuala
Lumpur. From Brisbane airport,
average flying travel time is nine (9)
800,000
Housing
hours to Jakarta and Hong Kong, The dwelling structures in the Gold Coast
700,000
11 hours to Shanghai and 13 hours LGA are more weighted to medium and
to Beijing. higher density housing than the national
600,000
trend. Approximately 19.6% of private
dwellings are flats, units or apartments—
The Gold Coast operates under the 500,000 higher than the national average of
Australian Eastern Standard Time
13.6%; whilst approximately 18.8% are
(AEST) time zone at all times of the
400,000 semi-detached, row, terrace house or
year.
townhouse type—almost double the
300,000 national average of 9.9%. Separate
detached houses comprised 60.4%—
200,000
lower than the national trend of 75.6%.
100,000 Employment
In the Gold Coast LGA, 29.9% of people
0
2006 2011 2016 2021 2026 2031 2036
were attending an educational institution
at the time of the last Census. Of these,
PAST POPULATION
CURRENT POPULATION 20.8% were in a University, Tertiary,
PROJECTED POPULATION
Technical or further education institution.
The most common occupation in the
Gold Coast LGA are Professionals—at
2
DESTINATION GOLD COAST Q2 2017 RESEARCH
17.4%, followed by Technicians & Trades
Workers (15.4%), Clerical & International Visitors—Top 10
Administrative Workers (14.5%), Sales Nationalities—to Australia
Annual Growth, Year ending Mar 2017
Workers (12.7%), Managers (12.3%),
Community & Personal Service Workers
GOLD COAST
(10.9%) followed by Labourers (9.8%)
25.0%
ANNUAL EVENT
and Machinery Operators & Drivers
20.0%
CALENDAR
(5.1%) being the next most popular
occupations. JANUARY
15.0%
Magic Millions Polo, Sales &
Racing Canival
Liveability 10.0% Gold Coast Chinese New Year
Festival
The Gold Coast is located in the state of
Gatorade Queensland Triathlon
Queensland which is often referred to as 5.0%
Australia Day celebrations
the ‘Sunshine State’ with warm weather Burleigh Surf Pro— World Surf
and clear days throughout the year. Gold 0.0% League
Korea
Other Asia
Thailand
U.S
India
Japan
China
Taiwan
Netherlands
Indonesia
Coast experiences relatively warm winter FEBRUARY
weather, with a mean minimum Sand Safari Arts Festival
temperature of 15°C, warmer than most Gold Coast Fun Run
Gold Coast MS Swimathon
other Australian capital cities. Summer
months are hot with a mean maximum of MARCH
25°C. On the Gold Coast, the most daily Somerset Celebration of
Literature Festival
sunshine is nine (9) hours in the month of
December. APRIL
from Other Asian countries grew 21.1%,
Commonwealth Games
to 291,000, while over the same time, held on the Gold Coast
Tourism visitors from Taiwan (at 156,000) and (4-15 April, 2018)
Thailand (at 87,000) both increased Cooly Classic Ocean Swim
The Gold Coast is branded ‘Famous for Gold Coast Bulletin Fun Run and
18.5%. The remaining fastest growing
Fun’ with many local and international Half Marathon
top ten nationalities visiting Australia QPOW on Broadbeach—Pop
events held throughout the year. It’s also
have been ranked in Figure 2. Culture Expo and Film Festival
known for being Australia’s theme park
capital. Many of Australia’s largest theme MAY
parks are located on the Gold Coast and Shopping Sanctuary Cove International
Boat Show
within close proximity to each other. The The Gold Coast accommodates a vast Gold Coast International Marine
destination is popular with families, array of renowned restaurants, art Expo
catering to all age groups and is galleries, independent fashion houses JUNE
extremely active in school holidays and vibrant retail strips. Premier Invitational Soccer
throughout the year. Surfers Paradise is Tournament
also located on the Gold Coast, with fine The heart of Surfers Paradise offers a JULY
dining restaurants, cafés and bars. Given pedestrian-friendly shopping district, Gold Coast Airport Marathon
the close proximity to Brisbane lined with unrivalled local, national and AUGUST
(approximately an hour by car), many international labels and flagship stores. Gold Coast Festival of Lights
local residents make their way down to Many high-end, international brands have
the Gold Coast for a weekend getaway. SEPTEMBER
also made their way to Pacific Fair Swell Sculpture Festival
Many also visit from interstate and Asia following the $670m redevelopment and Griffith Opera on the Beach
for a long weekend of activities. revamp in 2016—the shopping centre OCTOBER
accommodates more than 400 stores, Supercars Gold Coast 600
The state of Queensland is also home to including a dining precinct and cinema. Harrigans Rod & Custom Car
one of the most renowned natural Marina Mirage also offers luxury Show
wonders of the world—the Great Barrier shopping—with high-end fashion and NOVEMBER
Reef. Flights from Brisbane airport to the eateries. Red Bull Water Maze
serene Hamilton Island and Hayman NightQuater night markets
Island are only two (2) hours away— Carrara Markets are Australia’s biggest DECEMBER
allowing residents a short flight to nearby permanent market with over 400 stalls Australian PGA Championship
paradise. covering 10 acres, with everything from Mayor’s Christmas Carols &
fresh produce to homewares; while Markets
Gold Coast New Years Eve Party
The number of international visitors to Harbour Town is Australia’s largest outlet
Australia totalled 7.7 million in the year shopping centre with over 240 stores
ending March 2017, up 9.2% on the including brand direct outlet and
previous year. The number of visitors clearance stores, plus specialty stores.
3
The Simplified International Student Enrolments—
Student Visa Queensland
Number of persons, All countries
Framework (SSVF)
140,000 VET
From 1 July 2016, the Simplified Student SCHOOLS
Visa Framework (SSVF) replaced all NON-AWARD
120,000 HIGHER EDUCATION
previous eight student visas to allow ELICOS
study in Australia. Under the SSVF there 100,000
will be only two subclasses: Student Visa
and Student Guardian Visa. 80,000
60,000
Student Visa—
Subclass 500 40,000
International students can apply for a 20,000
single Student Visa regardless of their
0
chosen course of study. 2014 2015 2016
Student Guardian
Visa—Subclass 590
Student guardians can apply for the new The top 25 nationalities of international
Student Guardian Visa. The SSVF is students enrolled to study in
designed to make the process of Queensland, in 2016, across all
applying for a student visa simpler to education sectors are ranked in Figure 4.
navigate as all applications for student The largest nationality population base is
visas must be completed online. from China (22,100), India (12,060), Brazil
(8,400), South Korea (7,015) and Taiwan
All students and student guardians will (4,840).
generally be required to lodge their visa
application online by creating an account
in ImmiAccount.
International Student Enrolments—
ImmiAccount can be accessed at:
Top 25 Nationalities—Queensland
Total number of persons, All education levels,
border.gov.au/Trav/Visa/Immi 2016
International China
India
Brazil
Student Population South Korea
Taiwan
Japan
Colombia
Reflecting the strong reputation Hong Kong
Malaysia
internationally, universities in Australia U.S
Thailand
accommodate a large international Vietnam
Nepal
student base. Spain
Germany
Saudi Arabia
Canada
International student enrolments in Philippines
Italy
Queensland increased 14% from 97,230 Singapore
United…
in 2014, to 111,300 in 2016, as shown in Papua New…
Norway
Figure 3. Higher Education commands France
Indonesia
the most demand in student enrolments 0 5,000 10,000 15,000 20,000 25,000
with 42,200, followed by Vocational
Education and Training (VET) with 29,870
students.
4
DESTINATION GOLD COAST Q2 2017 RESEARCH
APPLYING TO AN
AUSTRALIAN
SCHOOL
Primary & Independent schools Apply to School: In most schools,
Secondary Schools Independent schools are financially and an ‘Expression of Interest’ form
Schools in Australia generally comprise a administratively privately operated. must be completed prior to the
mix of local and international students. Independent schools therefore hold more school year commencement in
control over the quantity and quality of order to guarantee a position for
The schooling education system in teachers, classroom sizes, amenities and the student. Response times vary
Queensland is broadly divided into: co-curricular. for each school.
- Primary school (ages 5 to 12) Fees for independent schools are usually Wait for Offer: If all requirements
high, but can be considered to provide are met, the school will offer a
- Secondary school (ages 12 to 18) an investment for superior education and formal placement in writing.
amenities to students.
Apply for a Student Visa: With the
There are four main types of schools— Religion-based formal school offer, students can
public, selective public, independent and then apply for relevant visas to
religious-based. schools allow them to live and study in
Religion-based schools hold faith at the Australia.
core of their education—however they
Public schools continue to follow the state government
Public schools are financially and education curriculum.
administratively operated by the state APPLYING TO AN
government and provide free education These religion-based schools are usually AUSTRALIAN
to domestic students. First preference is non-government, and thus often have UNIVERSITY
normally given to those living within a higher fees than government subsidised
particular catchment area from the schools. Apply to University: Search online
school.
for a university course or
Student visa holders must pay a fixed Universities investigate the courses on offer at
your preferred university. Apply
fee for each year of education, Most universities have a main campus
directly through the university
dependent on the type of visa held. with several smaller campuses located
contacts and provide all required
across multiple states and territories; in
evidence (usually education,
Selective public CBD, metropolitan and regional areas.
financial and English language
This provides a wide range of options
schools when studying in Australia with many
competence). Response times vary
for each university.
Selective public schools are financially universities also setting up campuses
and administratively operated by the based in major international cities.
Wait for Offer: If all requirements
state government. Selective public
are met, the university will offer a
schools are regarded as more The application process for international
formal placement in writing.
prestigious due to the academic students applying to Australian
selective nature. universities is similar to local students.
Apply for a Student Visa: With the
The length of the application process can
formal university offer, students
Students must sit academic examination often be longer than local students, as
can then apply for relevant visas to
and excel in order to be offered a more information is required before
allow them to live and study in
position from the respective school. acceptance.
Australia.
Additionally, these selective public
schools do not usually limit their intake Most universities will require an IELTS
to catchment areas. (International English Language Testing
System) examination conducted, an
Due to their public nature, student visa internationally recognised education
holders must pay a fee for each year of qualification and a portfolio of previous
education. work experience where applicable.
5Gold Coast’s top 25 overall best primary schools in 2015 are listed in Table 1, ranked according to Better Education.
Primary Schools—Top Performing—Gold Coast
Based on performance, 2015
English Maths Overall
Primary School Locality Format Type
Score Score Score
1 A B Paterson College Arundel Co-ed Independent 5/5 5/5 99
2 All Saints Anglican School Merrimac Co-ed Anglican 5/5 5/5 99
3 King’s Christian College Reedy Creek Co-ed Christian 5/5 5/5 99
4 St Hilda's School Southport Girls Anglican 5/5 5/5 99
5 Ashmore State School Ashmore Co-ed Indep/Public 5/5 5/5 98
6 Broadbeach State School Broadbeach Co-ed Indep/Public 5/6 4/5 98
7 Currumbin Valley State School Currumbin Valley Co-ed Public 5/5 4/5 98
8 Somerset College Mudgeeraba Co-ed Independent 5/5 5/5 98
9 The Southport School Southport Boys Anglican 5/5 5/5 98
10 Elanora State School Elanora Co-ed Public 5/5 4/5 96
11 Hillcrest Christian College Reedy Creek Co-ed Christian 4/5 4/5 96
12 Tallebudgera State School Tallebudgera Co-ed Public 4/5 4/5 96
13 Trinity Lutheran College Ashmore Co-ed Lutheran 4/5 4/5 96
14 St Vincent's Primary School (Surfers Paradise) Clear Island Waters Co-ed Catholic 4/5 4/5 95
15 Marymount Primary School Burleigh Waters Co-ed Catholic 4/5 4/5 94
16 St Francis Xavier School Runaway Bay Co-ed Catholic 4/5 4/5 94
17 St Kevin’s School (Benowa) Benowa Co-ed Catholic 4/5 4/5 94
18 Worongary State School Worongary Co-ed Public 4/5 4/5 94
19 Bellevue Park State School Southport Co-ed Indep/Public 4/5 4/5 93
20 Gold Coast Christian College Reedy Creek Co-ed Christian 4/5 3/5 93
21 Clover Hill State School Mudgeeraba Co-ed Public 4/5 3/5 92
22 Miami State school Mermaid Waters Co-ed Public 4/5 4/5 92
23 Musgrave Hill State School Southport Co-ed Public 4/5 3/5 92
24 Palm Beach State School Palm Beach Co-ed Public 4/5 3/5 92
25 St Andrews Lutheran College Tallebudgera Co-ed Lutheran 4/5 3/5 92
6DESTINATION GOLD COAST Q2 2017 RESEARCH
Gold Coast’s top 25 overall best secondary schools in 2015 are listed in Table 2, ranked according to Better Education.
Secondary Schools—Top Performing—Gold Coast
Based on performance, 2015
English Maths Overall
Secondary School Locality Format Type
Score Score Score
1 Somerset College Mudgeeraba Co-ed Independent 5/5 5/5 100
2 All Saints Anglican School Merrimac Co-ed Anglican 4/5 5/5 99
3 A B Paterson College Arundel Co-ed Independent 4/5 5/5 98
4 St Hilda's School Southport Girls Anglican 4/5 4/5 99
5 Hillcrest Christian College Reedy Creek Co-ed Christian 3/5 5/5 97
6 The Southport School Southport Boys Anglican 2/5 5/5 97
7 Trinity Lutheran College Ashmore Co-ed Lutheran 3/5 4/5 96
8 Palm Beach-Currumbin State High School Palm Beach Co-ed Public 2/5 4/5 95
9 Elanora State High School Elanora Co-ed Public 1/5 2/5 95
10 Kings Christian College Reedy Creek Co-ed Christian 3/5 4/5 94
11 Benowa State School Benowa Co-ed Public 2/5 4/5 94
12 Varsity College Varsity Lakes Co-ed Public 2/5 4/5 94
13 St Andrews Lutheran College Tallebudgera Co-ed Lutheran 2/5 3/5 94
14 Marymount College Burleigh Waters Co-ed Catholic 2/5 3/5 91
15 Miami State High School Mermaid Waters Co-ed Public 2/5 3/5 91
16 Southport State School Southport Co-ed Public 2/5 3/5 90
17 Gold Coast Christian College Reedy Creek Co-ed Cristian 2/5 3/5 90
18 St Michael's College Merrimac Co-ed Catholic 2/5 2/5 88
19 Aquinas College Southport Co-ed Catholic 2/5 2/5 87
20 Merrimac State School Mermaid Waters Co-ed Public 1/5 1/5 87
21 Robina State High School Robina Co-ed Public 1/5 2/5 85
22 Keebra Park State High School Southport Co-ed Public 2/5 2/5 85
23 Coombabah State School Coombabah Co-ed Public 1/5 1/5 77
7All major universities located on the Gold Coast are listed in Table 3 . Given the close proximity to Brisbane, Table 4 outlines the
remaining Brisbane university campuses.
Universities—Gold Coast
Number of Annual
Adjusted
State Australia World International International
University Name Graduate
Ranking Ranking Ranking Students (% of Student Fees
Campuses | International Campuses Salary (AUD)
2017 2017 2017 Total Students) (Average, AUD)
2017
2015 2015
Bond University 4 13 880 $49,204 1,763 (35%) $33,000
Robina, Southport (Gold Coast University Hospital)
Griffith University 2 8 353 $48,531 8,432 (19%) $24,000
Logan, Southport (Gold Coast University Hospital), Mt. Gravatt, Nathan, South Bank
Southern Cross University 10 40 1,054 $47,728 1,921 (14%) $21,000
Bilinga, Lismore (NSW), Coffs Harbour (NSW), Sydney CBD (NSW), The Hotel School (NSW)
Universities—Remaining Brisbane Campuses
James Cook University 5 16 377 $53,404 6,211 (29%) $25,000
Townsville, Cairns, Brisbane, Mackay, Mount Isa, Thursday Island | Singapore City (Singapore)
Queensland University of Technology 3 11 292 $47,548 7,525 (16%) $28,000
Gardens Point (Brisbane), Kelvin Grove, Caboolture
University of Queensland 1 6 60 $49,752 11,236 (23%) $34,000
St Lucia, Gatton, Herston, Ipswich
University of Southern Queensland 6 22 805 $52,191 4,548 (18%) $21,000
Toowoomba, Fraser Coast, Springfield, Ipswich
University of the Sunshine Coast 7 24 1,535 $47,046 1,921 (14%) $21,000
Sippy Downs, Noosa, Gympie, South Bank, North Lakes
8DESTINATION GOLD COAST Q2 2017 RESEARCH
GOLD COAST—
UNIVERSITY CAMPUSES
Bond University
Griffith University
Southern Cross University
9Current
Must apply and gain approval from A temporary resident is a person
regulations for the FIRB prior to purchasing who is residing in Australia and
property in Australia. holds a temporary residency visa
purchasing which permits them to stay in
Applications are generally approved Australia for a continuous period of
residential if the property purchased adds to more than 12 months (regardless of
the housing stock, including new how long remains on the visa); or
property on the dwellings that are yet to be has submitted an application for
occupied or sold, off-the-plan permanent residency and holds a
Gold Coast properties under construction or yet bridging visa which permits them to
to be built. This includes vacant land stay in Australia until that application
for residential development where has been finalised.
ongoing construction begins within
24 months. Are required to notify FIRB prior to
purchasing property in Australia,
Non-permanent residents are including an established dwelling, a
forbidden to purchase established new dwelling that has been
dwellings as investment properties purchased directly from the
or as homes. Although there could developer and has not been
be an exception if the established previously occupied for more than
dwelling is being redeveloped into 12 months in total and vacant land
multiple dwellings, and as a result, for residential development where
there is an increase in the dwelling ongoing construction begins with 24
count. Over the development months. Temporary residents are
period, the house must remain not permitted to buy established
unoccupied. dwellings as investment properties.
For further information: Foreign buyers can purchase an off- May acquire one established
the-plan dwelling, when another dwelling only and it must be used as
buyer has failed to reach their main residence (home) in
settlement—reverting to its previous
Foreign Investment Review Australia. Such proposals normally
status as a new dwelling. An
meet with no foreign investment
Board [FIRB] apartment or house that has just
been built, or is still under objections subject to conditions;
firb.gov.au construction and for which the title such as, that the temporary resident
has never changed hands, is not sells the property when it ceases to
considered an established dwelling. be their main residence.
Department of Immigration
and Border Protection
border.gov.au
Non-Permanent Resident Temporary Resident
(Foreign Investor) (Temporary Residency Visa)
10DESTINATION GOLD COAST Q2 2017 RESEARCH
Acquiring second-hand dwellings for
the purpose of providing housing for
their Australian-based staff normally
meet with no objections subject to
the conditions set by FIRB. Investment migrants under this
Investment migrants under this scheme are required to invest at
The company must sell the property scheme are required to invest at least AUD$15 million into complying
if it is expected to remain vacant for least AUD$5 million into complying investments in Australia for a
six months or more. In remote and investments in Australia for a minimum of 12 months before
rural locations foreign companies minimum of four years before becoming eligible for permanent
may rent out dwellings acquired becoming eligible for permanent residency; a more expeditious
under this category only where they residency. pathway than the SIV.
are unable to sell the property.
The SIV scheme is intended to The PIV scheme is aimed at
Whether a company is eligible, and target the migration of high net- attracting applicants with business
the number of properties it may worth individuals to Australia with and entrepreneurial skills and capital
acquire under this category, will the longer-term aim of transferring to enhance investment into
depend upon the scope of the wealth of international businesses innovative Australian businesses
foreign company's operations and and individuals to benefit Australian and the commercialisation of
assets in Australia. businesses and the broader Australian ideas, research and
economy. development.
Foreign companies would not be
eligible under this category where The SIV scheme was introduced on The PIV scheme was introduced on
the property would represent a 24 November 2012 and is operated 1 July 2015 and is operated by the
significant proportion of its by the Department of Immigration Department of Immigration and
Australian assets. and Border Protection. Border Protection.
Significant Investor Visa (SIV) Premium Investor Visa (PIV)
Foreign Company with Investment Migrants
Australian Business (High Net Worth Individuals)
11When purchasing property in Australia,
there are both federal and state taxes and Mortgage Application
a range of fees that are implemented. Fee
A fee charged by the relevant state
government for the registration of a home
loan, which vary from provider to
provider.
Note: Also known as a Mortgage
Registration Fee.
Deposit
A deposit of 10% is generally paid to
‘reserve’ or ‘secure’ a property. This sum
is generally paid by cheque or electronic
transfer and held in Trust until the
remaining 90% is paid upon settlement
or, when the property has completed
construction.
Stamp Duty The Australian Government welcomes
Stamp duty is a tax that is levied by the foreign investment into Australia’s
state government on written documents residential property market. The current
and transactions involved in the purchase rules around foreign investment in
of property. Dependent on the stage of residential property aim to direct
development, stamp duty can be investment into new housing, increasing
significantly reduced for off-the-plan the housing supply and support local
properties under various government economic activity.
incentive schemes.
All foreign persons— that is, temporary
residents and non-residents— can apply
Land Transfer Fee to purchase vacant residential land for
When a property changes ownership, a development and newly constructed
document known as a Land Transfer is dwellings in Australia.
lodged and registered with the
appropriate State Titles Office, and a fee Non-resident foreign persons are
is charged. It is this document that generally prohibited from purchasing
records the change of ownership. The established dwellings in Australia.
cost to register the title varies in each
However, temporary residents can apply
state or territory of Australia. Your
to purchase one established dwelling to
solicitor/conveyancer will usually perform
use as their residence while they live in
this task on your behalf.
Australia, although on the condition the
Note: Also known as a Land Registration
property is sold when it ceases to be
Fee.
their principal place of residence.
Legal Fees Once a property has been identified to
Legal fees will vary between legal firms purchase, an application must be made
and may be dependent on property value. to the Australian Foreign Investment
Generally fees range from $1,000 to Review Board (FIRB). It is highly
$3,000 plus Goods and Services Tax recommended that an application is
(GST). It is highly recommended to submitted prior to the advance of any
engage a solicitor or conveyancer during transaction—to ensure complete legality
the entire process of a property purchase. of the purchase. Additionally, approval
Note: Also known as Conveyancer Fees from FIRB is property-specific—one
12DESTINATION GOLD COAST Q2 2017 RESEARCH
application per property.
Duty Surcharge
Fees payable by Foreign Investors,
When the application is submitted, the Residential property The Queensland state government
government investigates to ensure that Based on Property Value, AUD imposes a duty surcharge for foreign
the purchase of the property will be in the investors, payable in addition to standard
$1 million or less Over $1 million
country’s best interest. A decision on the state-based stamp duties. From 1
application is made within 30 days— October 2016, foreign purchasers are
$10,000 plus $10,000 required to pay an additional 3% of the
unless complications or alterations occur,
incremental fee increase
in which it may take up to 90 days. $5,000
per additional $1 million
purchase price.
in property value
Foreign Investor
Duties payable by Foreign
Application Fee Investors, Residential property
From 1 December 2015, all foreign Based on Property Value, AUD, Payable in
addition to standard state-based stamp duties
investors must pay a fee before their
foreign investment application will be Queensland; including Gold Coast
processed. This fee does not provide any assurance
of securing the property and stricter Duty Surcharge on Purchase Price;
3%
from 1 October 2016
Foreign investors are required to pay penalties have been ramped up by the
$5,000 to purchase a new property in the Australian Taxation Office (ATO) for those
Australian property market, with an who breach the rules.
additional $10,000 payable for every
million dollar increment in the value of the For more detailed information on current Other states with similar foreign investor
property. The fees apply for each fees and penalties, refer to our Foreign duties include New South Wales (8% as
application and is uncapped if the Investment in Australian Residential of 1 July 2017) and Victoria (at 7%)
property is valued over AU$1 million. Property Market Insight report. effective from 1 July 2016.
Estimated Property Purchase Costs, Gold Coast
All costs represented in AUD, From 1 July 2017
Purchase Price 350,000 500,000 750,000 1,000,000 1,500,000 2,000,000
Stamp Duty 10,675 15,925 26,775 38,025 66,775 95,525
Land Transfer Fee 735 1,230 2,060 2,890 4,535 6,180
Legal Fee (includes GST payable) 1,500 1,500 1,500 1,500 1,500 1,500
Mortgage Application Fee 175 175 175 175 175 175
Standard: Estimated Total Costs 13,085 18,830 30,510 42,590 72,985 103,380
Foreign Investor Application Fee* 5,000 5,000 5,000 5,000 10,100 20,300
Foreign Investor Duty Surcharge @3% 10,500 15,000 22,500 30,000 45,000 60,000
Foreign Investor: Estimated Total Costs 28,585 38,830 58,010 77,590 128,085 183,680
13WHAT IS AN
OWNERS
CORPORATION? In Australia, most properties are Council Rates
purchased as freehold—that is, the land
This varies from state to state as well as
A group of elected people that and building is owned outright, in
local council government area. This is the
manage the operations and perpetuity. Costs and taxes associated
tax the council charges owners for the
decision-making of the common with a property vary dependent on the
services to the property—generally paid
area of the property. This can services the building provides.
quarterly or annually.
include elevators, foyers,
swimming pools and spa,
gymnasiums, plants and foliage, Income Tax
lighting, staircases, fences, visitor Income tax is payable on gross rental
car parks and security. income, less any allowable deductions
In most states, the owners
Land Tax incurred in earning that income. As there
are a number of allowable deductions, it
Land tax is an annual state tax that is
corporation must comprise of an is recommended that an Australian Tax
calculated based on the aggregated
executive committee (generally advisor is consulted.
taxable value of all land owned (or jointly
individual owners of the
owned) by an individual. Land Tax is not
apartments) that can make any
applied if the property is your principal
necessary decisions on its behalf.
residence.
The rights and responsibilities of
both the owners corporation and
its members differ state by state Land Tax Surcharge
but generally comprise:
for Foreign Investors
The Queensland state government has
Maintaining and repairing the
introduced a 1.5% surcharge on land tax
common property of the strata
for foreign owners, payable in addition to
Lease
scheme
A property lease is a contract by which
standard state-based land taxes. Other
one party conveys property or land to
Managing the finances of the states with similar land tax surcharges
strata scheme another party for a specified period of
include New South Wales (2% as of 1
time, usually in return for a periodic
July 2017) and Victoria (at 1.5%).
Maintaining required insurances payment. An owner is allowed to lease
including public liability and their property in order to earn an income
building insurance where Foreign-Owned Vacant from the building. When leasing out a
applicable
Residential Property property, there are costs and
Record keeping of all details of
responsibilities for the landlord.
notices given under the relevant Levy
state strata management
legislation
The Australian government has
introduced an annual levy for foreign-
Rent
Rent paid by the tenant, to the landlord,
owned vacant residential property.
A strata register must be can be paid weekly, fortnightly or
established and maintained, monthly and this would be stipulated
detailing the owner’s name or The levy is equivalent to the foreign
within the lease.
agent’s name and address for investment application fee imposed on
each lot within the strata scheme the property by FIRB at the time the
Rent increases will be stated within the
property was initially purchased.
Administering any by-laws for lease. In a standard lease, the landlord
the strata scheme cannot increase the rent until the end of
Owners Corporation the fixed term unless otherwise stated.
To provide a grievance register If the purchased property is strata titled (a
building where there are common areas Rent cannot be increased more than
and facilities for all occupants of the once every six months, and this is
building), then an owners corporation normally calculated in line with the
must be established for the site. A regular market. The tenants must be given at
fee is generally paid to maintain the least 60 days notice of any proposed
property. increase.
14DESTINATION GOLD COAST Q2 2017 RESEARCH
Bond
associated with employing the Repairs
management of the building and its
A bond is a lump sum payment requested Repairs to the property that are due to
tenants. The fees usually range from 7%
upfront from the tenants as security the normal wear and tear of the property
to 8.5% plus GST.
before moving into the property—usually must be paid by the landlord.
four weeks’ rent. This lump sum is held in
a trust by the Residential Tenancies
Landlord Insurance Repairs classified as ‘urgent’ must be
Authority (RTA), and will be repaid to the Landlord Insurance is a type of property completed as soon as possible, while
tenant at the termination of the lease if insurance that is designed specifically to ‘non-urgent’ repairs must usually be
the property is left in a suitable condition. rental properties. Depending on the taken care of before 14 days of
insurance provider, it protects the home notification.
and contents from damage, theft, severe
White Goods
Residential property may come either
weather or rent default in some cases. To
decrease risk, Landlord Insurance is
Terminating the
furnished or unfurnished, which is highly recommended. Tenancy
clarified in the lease. However, it is A tenancy can be terminated at the
usually advised that the landlord provide
fitted white goods as a minimum in order
Utility and Service conclusion of the lease. However, both
landlord and tenant can request to end
to appeal to a wider market, especially in Charges the tenancy for a variety of reasons
high-rise apartment complexes. The party responsible for payment of which are outlined under the Residential
utility and service charges will be Tenancies and Rooming Accommodation
Property Management stipulated within the lease. However, the Act 2008. Certain conditions must be
landlord must pay for the actual met before the lease can be terminated,
Fees installation and initial connection costs including days of notice, number of
Letting Fees: Usually 2 weeks’ rent is for electricity, gas, oil and water supply. If notices and reason for termination.
paid to the agent as a fee for finding and these need replacing, then the landlord
securing a tenant. must replace them to the minimum For more information, please visit
Management Fees: Any costs efficiency standards. https://www.rta.qld.gov.au/
Legal Fees
Legal fees include, but are not limited to, the costs for preparing a contract for sale. The solicitor or conveyancer fee could
be dependent on value of property, and may vary between state and territory as well as the particular solicitor chosen. The
cost may range between $1,000 and $3,000, plus GST.
Real Estate Agent Fees
An agent fee is the commission paid by the owner to the agent for selling your property. Commissions will vary between
state and territory, and the fine print of the contract should be analysed thoroughly to understand the breakdown of the fee
structure (such as fixed rate or tiered rate). Fees often range between 2% and 3% of the value of the property sold.
Marketing Fees
When an agent is chosen, the agent’s fee breakdown will often stipulate the budget associated to marketing and advertising
of the property. Additionally, there will be a period allocated to marketing with multiple open house inspections over several
weeks. Budgets for marketing, media, as well as length of advertising should all be discussed with the agent to ensure
maximum advertising potential.
Capital Gains Tax (CGT)
Capital gains tax (CGT) is a federal tax levied on the gains or loss upon the sale of an investment (most often real estate or
shares). The tax is implemented simply on the difference between the cost of acquiring the investment, and the received
value when sold. The difference is then added to the individual’s or company’s income tax for that financial year, and taxed
accordingly with those rates. For local resident individuals, this equates to a range of 0% to 45%, while tax is applied at a
rate of 32.5% to 45% for non-resident individuals. The CGT withholding rate for foreign tax residents is 12.5% with a
threshold of $750,000, unless a clearance certificate can be provided by the vendor. This will be effective from 1 July 2017.
15RESIDENTIAL RESEARCH
Michelle Ciesielski
Head of Residential Research, Australia
+61 2 9036 6659
Michelle.Ciesielski@au.knightfrank.com
RESIDENTIAL PROJECT MARKETING
GOLD COAST
Chris Litfin
Head of Project Marketing, Gold Coast
+61 7 5636 0814
Chris.Litfin@au.knightfrank.com
Michael Robinson
Head of Project Marketing, Australia
+61 3 9604 4775
Michael.Robinson@au.knightfrank.com
INTERNATIONAL RESIDENTIAL
PROJECT MARKETING
Rebecca Pugh
Associate Director, Australia
+61 3 9604 4716
Rebecca.Pugh@au.knightfrank.com
RESIDENTIAL SITE SALES
James Branch
Director, Gold Coast
+61 7 5636 0802
James.Branch@au.knightfrank.com
CAPITAL MARKETS
Justin Bond
Senior Director, Institutional Sales
+61 7 3246 8872
Justin.Bond@au.knightfrank.com
Neil Brookes
Head of Capital Markets, Asia Pacific
+65 6429 3585
Neil.Brookes@asia.knightfrank.com
GOLD COAST
Knight Frank Research provides strategic advice, consultancy services and forecasting Tania Moore
to a wide range of clients worldwide including developers, investors, funding Joint Managing Director, Gold Coast
+61 7 5636 0801
organisations, corporate institutions and the public sector. All our clients recognise the
Tania.Moore@au.knightfrank.com
need for expert independent advice customised to their specific needs.
Mark Witheriff
Joint Managing Director, Gold Coast
+61 7 5636 0803
Mark.Witheriff@au.knightfrank.com
QUEENSLAND
Ben McGrath
Managing Director, Queensland
+61 7 3246 8814
Ben.McGrath@au.knightfrank.com
Australian Residential Foreign Investment Global House Price The Wealth Report
Review in Residential Index Q1 2017 2017
June 2017 Property June 2017
Knight Frank Research Reports are available at KnightFrank.com.au/Research
Important Notice
© Knight Frank Australia Pty Ltd 2017 – This report is published for general information only and not to
be relied upon in any way. Although high standards have been used in the preparation of the
information, analysis, views and projections presented in this report, no responsibility or liability
whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from
any use of, reliance on or reference to the contents of this document. As a general report, this material
does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular
properties or projects. Reproduction of this report in whole or in part is not allowed without prior
written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.You can also read
