Hunters Hill mainland Chinese prestige property purchase signals emerging international trend

Chinese property buyers have the potential to create top-end housing market momentum in key cities across the world, including Sydney, according to international real estate group Savills.

But not until Chinese currency and offshore investment rules are relaxed, says Savills global research director Yolande Barnes.

“Emerging markets, and Chinese buyers in particular, still have the potential to move other world city markets,” the report, Savills World Cities Review Index, suggests.

“The unleashing of high-net worth Chinese investor monies could boost London’s prime markets by 15% and the same must be true of other top cities, but this will require the relaxation of currency export controls and overseas ownership restrictions.”

Meanwhile China-based buyers have continued their acquisition of prestige Sydney property, the latest being a mainland Chinese family who've spent $9 million plus on Elysium (pictured below), a Hunters Hill waterfront, through Savills agent Adam Ross last month.

The six-bedroom, five-bathroom Le Vesinet Drive, Pulpit Point, property on a 992-square-metre block has a Turkish steam bath.

It was briefly listed for sale in 2005 with $10 million hopes. it was built in 2002 with its Sydney Harbour Bridge views in mind, with attention to detail paid to its design and construction. 

White marble floors greet guests in the grand entry vestibule, which leads to the elegant formal living and dining rooms and on to a covered terrace capturing north-easterly views. An opaque glass and timber door, framed by tall rosewood architraves, leads into the kitchen, where antique Chinese doors conceal a huge pantry. Next to the kitchen is a casual dining area that flows into an informal living room opening to another viewing terrace.

The billionaire property and media tycoon Chau Chak Wing, who is an Australian citizen, has owned on the same street since paying $3 million in 1995 to buy within the Comrealty-developed Pulpit Point estate.

Sydney ranked among the international cities showing positive prestige price growth, although Hong Kong led the Savills World Cities Index for the first?half of 2012 with a price rise of?just over 7%.

Source: Savills

 Sydney was up 3.7% in a period when the residential markets of the world’s leading cities had become more localised.

"The strongest price growth has been seen in those world cities that were buoyed by domestic demand, while international investor cash has retreated to a few core markets with established, long-term investment credentials," the report says.

Paris was the worst global city in the Savills index, with prices falling because of the ongoing eurozone crisis and proposed increases to taxes on high-end property and investor gains that followed the election of President François Hollande, who's set to impose taxes on the rich. 

"Paris is the biggest loser of 2012 and faces a period of uncertainty," the report notes, adding further price falls now seem unavoidable in the French capital. London is the potential beneficiary as international money seeks an alternative haven within the geography of Europe, but outside the eurozone.

London remains the second most expensive world-class market, but it too faces uncertainty regarding the impact of new stamp duty rules, announced in the March budget, which has already slowed activity and price growth at the top of the market.

"A period of flat prices now seems likely, though market fundamentals (high occupier demand and limited supply) favour growth longer term," the report notes.

Barnes says that New York is poised for a strong recovery with steady price growth, low mortgage rates, short supply and growing offshore demand.