Gold Coast development: $20B of Chinese-linked property projects which failed to materialise
Dark clouds hang over the future of a proposed $600 million theme park on the Gold Coast. READ THE SPECIAL REPORT
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DARK clouds hang over the future of a proposed $600 million theme park on the Gold Coast, with its leading supporter admitting it’s unlikely to go ahead.
Mayor Tom Tate, who has long championed Songcheng’s proposed Australian Legends World theme park at Carrara, expressed concerns over its future.
“I know (Songcheng) were ready to go and they don’t want to say they don’t want to do it but the foot is off the pedal,” he said.
“I understand something has happened outside of my control.
“I am hoping they will come back to the table and if they look long-term it will be clear we have not changed.”
It is understood the developer has slowly been working through myriad concerns relating to flooding as well as the theme park’s impact on the proposed Coomera Connector which will neighbour it.
The theme park was first pitched in late 2016 and the project’s development application was submitted to the Gold Coast Council in mid-2017 but has never made it to a planning committee meeting.
Leading real estate agent Roland Evans said Songcheng still intended to proceed with the project despite the circumstances.
“Songcheng have resolved the issues with flood mitigation and DTMR over the past two years,” he said.
“Obviously, they are mindful the residents in the area are a bit anxious of its impact so have turned that whole thing around.
“When it will be? Well, I don’t know. Of course there are a lot of things in play at the moment which are slowing things up, none of which we can do much about it.”
It comes as more than $20 billion worth of development projects linked to Asian developers has either stalled or been canned in just five years.
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The slowdown of the economy, increased lending restrictions and now the COVID-19 pandemic have been blamed for putting a damper on what was once see as a financial wave the Gold Coast would able to ride well into the 2020s.
Of the billions of dollars of projects pitched for the Gold Coast by overseas investors in recent years — just a handful have gone ahead, including Ridong’s $1.2 billion Jewel towers at Surfers Paradise and the under-construction Dorsett tower in Broadbeach from Star Entertainment Group and Far East Consortium.
Gold Coast Mayor Tom Tate, who has travelled to China many times during his eight years in office, said growing political tension between the two countries would make further investment difficult.
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“The political pointscoring between Australia and China has not helped but I will do my best to mend local bridges,” he said.
“Post COVID-19, everyone will be welcome, that’s what we Gold Coasters do.”
The Chinese government’s crackdown on overseas investment was a major factor in the slowdown, as was lending restrictions instituted in the wake of the Royal Commission into Banking.
These factors saw ambitious projects including Forise’s 89-storey, $1.2 billion Spirit supertower shelved when the developer was forced to sell the site and withdraw from the Australia market.
Some projects, including ASF’s controversial Wavebreak Island and Spit integrated resorts, were knocked back by the State Government and council.
Others were approved but never built.
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ASF, which saw two projects worth a combined $10 billion knocked back by the State Government, still has significant property holdings on the Gold Coast and approved development applications on an number of sites.
It’s most ambitious project is The AU, a giant $600 million gold high-rise residential development on the corner of Southport’s Scarborough and Queen streets.
With a 66-storey supertower as its centrepiece, the project is among the most distinctive developments pitched during the Chinese wave.
But despite gaining approval in 2017, work has not begun.
ASF director Louis Chien said on Friday that the Sydney based consortium retained an interest in building on the Gold Coast.
‘We are awaiting the right opportunity and time to move these project forward,” he said.
“ASF is constantly evaluating its options.”
Originally published as Gold Coast development: $20B of Chinese-linked property projects which failed to materialise