The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JUST 15 DAYS UNTIL OUR FLAGSHIP CONFERENCE JOIN MORE THAN 550 ALREADY ATTENDING
JUST 15 DAYS TO GO UNTIL URBANITY-25 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ResidentialTue 13 Feb 18

China Still a Major Player in Australia’s Property Market

TUD+ MEMBER CONTENT
925cc744-1ab3-4654-9e5d-88209f212a26
SHARE
print
Print

Despite Beijing’s restrictions on offshore company investment, China still has a healthy presence in Australia’s property market, taking a one-third helping of national development sites.

A recent report by Knight Frank revealed that Chinese investment activity in Australia during 2017 equated to AUD$2.02 billion in development site sales, with the average site taken off the market measuring 21,785 square metres.

Tighter capital controls imposed by the Chinese government and tougher restrictions on mortgage lending by local banks has eased Chinese demand for Australian property over the past year.

Knight Frank’s head of residential research Michelle Ciesielski said this share of sales to Chinese buyers has tripled since 2013, but decreased from the 38 per cent recorded in 2016.

Over the past few years both Australian and Chinese governments have kept lending regulations and property development investment on the agenda.

Related reading: What Will Chinese Investors Do Next?

Ciesielski said that despite regulations by Australian and Chinese governments, interest in the Australian market has persisted.

“In Australia, APRA has encouraged local financial institutions to impose stricter controls, while in China the government has attempted to moderate capital outflow with China’s Central Bank imposing new rules for companies which make yuan-denominated loans to overseas entities.

“However, in mid-2017, this was relaxed somewhat – resulting in a boost to market confidence.” Ciesielski said.

Chinese developers have continued to dominate foreign investment in residential development sites across Australia. Many are now well-established in the local market.

“This share of sales to Chinese buyers has tripled since 2013, but decreased from the 38 per cent recorded in 2016,” Ciesielski said.

As Chinese developers gain experience in higher-density projects across the major cities, there has been diversification in many of their portfolios to include medium and lower-density sites.

Related reading: Chinese Interest in Australian CRE Falls Following Regulations on Outbound Investment

“These lower-density projects have also become more popular with local developers – especially in NSW with the draft Medium Density Design Guide being released, identifying the ‘missing middle’ to encourage more low-rise, medium-density housing to be built,” Knight Frank head of Asian markets Dominic Ong said.

“This type of project also tends to have less hurdles with the imposed tighter lending restrictions, and overall, lowers the delivery risk to the developer.”

Sydney and Melbourne continued to be favoured by Chinese investors, and for new developers coming into Australia, transactions will be reliant on the ability to transfer their funds.

ResidentialInternationalAustraliaResearch
ADVERTISEMENT
TOP STORIES
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
View All >
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
A hydrogen production facility, part of the Hydrogen Energy Supply Chain (HESC) project to ship hydrogen from Victoria to Japan.
Exclusive

Minister Intervenes, Approves Hastings Hydrogen Facility

Marisa Wikramanayake
For not the first time, a planning minister has intervened in the project as Victoria pushes its renewable energy plans …
LATEST
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
3 Min
A hydrogen production facility, part of the Hydrogen Energy Supply Chain (HESC) project to ship hydrogen from Victoria to Japan.
Exclusive

Minister Intervenes, Approves Hastings Hydrogen Facility

Marisa Wikramanayake
3 Min
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/china-still-a-major-player-in-australias-property-market