Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

China

<html><body>
GUEST OBSERVER
The Asia-Pacific alternative finance market grew 323 percent to $102.8 billion in 2015, led by four-fold growth to more than $100 billion in China, finds first regional benchmarking report
Survey was conducted by a research team from the Cambridge Centre for Alternative Finance, the Tsinghua University Graduate School at Shenzhen and the University of Sydney Business School, in collaboration with KPMG and with the support of ACCA (the Association of Chartered Certified Accountants) and CME Group Foundation.
The Asia-Pacific online alternative finance market including peer-to-peer lending and crowdfunding grew 323 per cent in 2015 to $102.8 billion, led by a four-fold increase in China to $101.7 billion, according to the first comprehensive study of the Asia-Pacific online alternative finance market.
“The Asia-Pacific online alternative finance market is fluid, diverse, increasingly complex and growing at a rapid pace,” said the report issued today, entitled Harnessing Potential – The 2015 Asia-Pacific Alternative Finance Benchmarking Report.
Outside of China, the rest of the Asia-Pacific region recorded alternative finance volume of $1.12 billion in 2015, up 313% from the $271.9 million raised in 2014. The largest markets in 2015 beyond China were Japan ($360 million), Australia ($348 million), New Zealand ($268 million), South Korea ($41 million) and India and Singapore (each about $40 million).
China is the world’s largest alternative finance market based on the researchers’ global dataset, the report said. While there have been reports on China’s alternative finance market by Chinese companies, this is the first study to benchmark the Chinese market with a set of comparable international standards.
“The Chinese online alternative finance market grew from a relatively low base of $5.56 billion in 2013 to reach $24.30 billion in 2014 and then went on to reach $101.7 billion in 2015,” the report said. Peer-to-peer consumer lending ($52 billion) and peer-to-peer business lending ($40 billion) are by far the largest market segments in China. Reasons cited in the report for the rapid growth of alternative finance in China include the country’s global leadership in Internet user base and smartphone connections, and the fact that alternative finance has “been mostly unrestricted and unchecked” until recent guidelines by regulators.
The alternative finance market includes peer-to-peer consumer and business lending, equity-based and reward-based crowdfunding, and other provision of finance to individuals and businesses through alternative channels via online marketplaces outside of the banking system.
Other key findings of the report included:
<ul>
<li>More than half surveyed platforms in China (with the exception of equity-based crowdfunding) deemed existing regulation to be inadequate or too relaxed, or recognized the need for specific regulation to be introduced. </li>
<li>In per-capita terms, the largest alternative finance markets in Asia-Pacific in 2015 were China ($74.54), New Zealand ($59.37) and Australia ($14.83). </li>
<li>The institutional funding of online alternative finance is notably higher in the wider Asia-Pacific region outside of China, at 63 percent for peer-to-peer consumer lending outside China and 10 per cent in China. </li>
<li>The institutional ownership of alternative finance platforms is far higher for China, at 23 per cent majority interest for banks or other institutional owners compared to 6 per cent in the Asia-Pacific region outside of China. </li>
<li>Outside of China, peer-to-peer business lending has been the largest alternative finance funding segment for three consecutive years, but peer-to-peer consumer lending is the fastest-growing sector with average year-on-year growth rate of 653% between 2013-2015.</li>
<li>The Asia-Pacific region appears to have relatively high rates of female participation in online alternative finance markets, at 33 per cent for peer-to-peer consumer borrowers outside China and 19 per cent in China. </li>
</ul>
The survey involving 20 research partners was based on data from 503 leading alternative finance platforms in 17 Asia-Pacific countries and regions, of which, 376 were from mainland China. The study captured an estimated 70 per cent of the visible market, yielding the estimates contained in the report.
The report described the regulatory environment for alternative finance across the Asia-Pacific region as “diverse and rapidly changing.” While some countries such as Singapore have chosen to regulate alternative finance within pre-existing frameworks, others including New Zealand have created bespoke regulation. And while surveyed platforms in New Zealand and Malaysia generally felt existing regulation is “adequate and appropriate,” platforms in Japan and South Korea were more concerned that regulation is too strict and Chinese platforms generally felt regulation was too lax.
“The opportunities for the world's most populous region to harness the potential of alternative finance for innovation, economic growth, market efficiency, and creativity are abundant,” the report said. “The present challenge is how to best nurture the alternative finance industry, grow the market in a sustainable manner and develop an appropriate and proportionate regulatory regime that strikes the right balance between encouraging financial innovation and protecting the interests of consumers and investors.”
The survey was conducted by an international research team from the Cambridge Centre for Alternative Finance at Cambridge Judge Business School, the Tsinghua University Graduate School at Shenzhen and the University of Sydney Business School, in partnership with KPMG and with the support of ACCA (the Association of Chartered Certified Accountants) and CME Group Foundation.
This article was written by the University of Cambridge Judge Business School. 
To download a full copy of the report, <a href="https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/harnessing-potential/#.VunQeOnvhUE" target="_blank">click here</a>.
</body></html>

po-LsXgBTHBmX

Property 101: Asia-Pacific alternative finance market grew 323 percent in 2015

<html><body>
China’s policy makers met at the National People’s Congress in early March, announcing an economic growth target range of 6.5-7 percent. 
In addition, they released a target growth rate for total social financing of ‘around 13 percent’ – which would result in a further deterioration of debt-to-GDP.
As noted in this month’s China Economic Update, a broader estimate of China’s debt puts this figure at around 308% of GDP – a level comparable to many advanced economies and particularly high for a still developing country. Chinese authorities are now facing a debt dilemma – they can no longer allow debt to grow unchecked, however controlling debt growth would mean accepting a slower rate of economic growth. At least for 2016, they appear content to allow the former to happen.
Industrial production growth slowed to a seven year low in January-February, while fixed asset investment accelerated slightly, on the back of stronger investment in real estate. New construction starts were stronger over this period, but it is too early to know if this is a trend that can be sustained.
Retail sales were a little softer – with real retail sales growth likely dipping below 10 percent yoy, slightly weaker than the levels recorded across most of 2015 but still robust. 
At the end of February, the People’s Bank of China (PBoC) cut the Required Reserve Ratio for the fifth time in a year – down to 17 percent for large institutions – potentially adding RMB 690 billion in liquidity to financial markets. As we have previously noted, these policy changes are not necessarily stimulatory, as RRR cuts have been necessary to maintain liquidity in the finance sector, given the capital outflow in recent years.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.35.51%20AM.png" target="_blank">Click to enlarge</a>
  <img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.35.51%20AM.png" alt="">
China’s policy makers met at the National People’s Congress in early March, releasing a range of targets for key economic indicators. The most closely watched is the economic growth target, which was slightly reduced for 2016 – to a range of 6.5 percent to 7.0 percent – compared with last year’s ‘around 7.0 percent’. 
Our forecast for growth is unchanged at 6.7 percent in 2016 and 6.5 percent in 2017, although we consider the risks to be weighted to the downside. 
Authorities also set a target for growth in total social financing, at around 13 percent for 2016 – which would mean a further deterioration in the country’s debt-to-GDP ratio. 
As noted in this month’s China Economic Update, a broader estimate of China’s debt puts this figure at around 308 percent of GDP – a level comparable to many advanced economies and particularly high for a still developing country. 
Under the newly commenced 13th Five Year Plan, also released at the National People’s Congress, China is targeting an average rate of growth of 6.5 percent in the period to 2020 – which would result in a doubling of GDP over 2010 levels. 
Chinese policy makers are facing a significant dilemma regarding the country’s debt. They can no longer afford to allow debt to grow unchecked – as this would increase the likelihood of a major financial crisis and the potential for a hard landing. On the other side, real economic growth is unlikely to be sustainable at the five year target without stronger growth in debt – bringing down the ratio would mean tolerating a considerably lower potential rate for economic growth (something that policy makers are unlikely to tolerate). 
China’s industrial production slowed across January and February – down to 5.4 percent yoy (compared with 5.9 percent in December 2014). This rate of growth was below expectations and the slowest rate of growth since the same period in 2009. 
Key heavy industrial sectors remained weak – with crude steel output falling by 5.7 percent yoy, cement production down 8.2 percent yoy – reflecting weakness in the construction sector, while the motor vehicle sector recorded growth of 5.3 percent yoy. Electricity generation was marginally stronger – up 0.3 percent yoy. 
•China’s industrial surveys have remained negative in early 2016, with the official NBS survey falling to 49.0 points in February (from 49.4 points previously), the weakest level since January 2009. In contrast, the Caixin Markit PMI also fell, down to 48.0 points (from 48.4 in January), but this measure is less negative than late 2015. 
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.38.37%20AM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.38.37%20AM.png" alt="">
Fixed asset investment recorded an acceleration in early 2016, with growth at 10.2 percent yoy across January and February, up from 8.2 percent yoy in December. It is worth noting that this was around the rate of growth recorded in November 2015, which was well below the trend levels of recent years. 
Investment in the manufacturing sector has continued to slow – reflecting tough industrial conditions and excess production capacity – down to 6.7 percent yoy (on a three month moving average basis), compared with 7.6 percent in December. In contrast, there has been a slight improvement in real estate investment, recording growth of 1.7 percent yoy (3mma) in February, up from -3.3 percent in December. Combined, these two sectors accounted for almost 56 percent of total investment in 2015. 
In contrast, strong investment growth has been sustained in water conservation and environmental management (27 percent yoy across January-February) and public utilities (19 percent yoy) – with these sectors comprising around 15 percent of the total in 2015. 
Residential construction activity was stronger in January-February, however it is too soon to know whether this is a trend that can be sustained. New construction starts were up around 9.7 percent yoy over this period, and up 1.5 percent yoy on our preferred three month moving average basis (reflecting very weak growth in late 2015). 
House price trends have improved in recent months, however the majority of gains have been in China’s tier 1 cities (Beijing, Shanghai, Shenzhen and Guangzhou) – where prices rose by 17% yoy. In contrast, tier 2 cities rose by just 0.3% yoy and tier 3 and below by 1.1% yoy. A more sustained recovery outside tier 1 cities may be required to support sustained stronger construction activity. 
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.39.56%20AM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.39.56%20AM.png" alt="">
China’s trade activity pulled back sharply over the first two months of the year, with substantial falls in both imports and exports – both from the levels of late 2015 and from levels a year ago. China’s trade surplus only narrowed marginally – averaging US$47.9 billion a month across January and February (compared with US$59.4 billion in December 2015).
Across January and February, China’s imports totalled US$207.5 billion, a year on year fall of 17%. In part, this reflects the continued falls in commodity prices, with the RBA Index of Commodity Prices falling by almost 25% yoy in the first two months of the year.
In contrast, the volume of imports has declined less significantly, down by only around 2.8% in 2015, and around 6.8% in January (although the earlier timing of Chinese new year may have distorted the latter result).
In terms of major commodities, there were noticeable increases in imports of copper (up 23% yoy in January-February), crude oil (up 9.3% yoy) and iron ore (up 6.3% yoy). In contrast, the declining trend for coal continued, down by 10% yoy over the first two months.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.51.56%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.51.56%20AM.png" alt="" width="913" height="357">
China’s exports totalled US$303.3 billion across January and February, a fall of 18% yoy. China’s exporters remain relatively negative, with the new export orders measure in the NBS PMI survey at 47.4 points in February (albeit improved from 46.9 points in January).
The key driver of the fall in export values over the first two months was a decline in exports to Asia – which fell by over 18 percent yoy, to US$90 billion. Exports to Europe and the United States fell less significantly – with both down by around 16 percent yoy.
Exports to Hong Kong declined less sharply than other markets – down by around 13 percent yoy across January and February. In contrast, non-Hong Kong Asia saw declines of almost 22 percent yoy – led by falling export values to Malaysia, South Korea and Vietnam.
Trade data between China and Hong Kong continues to have considerable distortions, in part due to false invoicing used to hide unapproved capital flows – providing considerable uncertainty around the true level of trade.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.54.00%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.54.00%20AM.png" alt="" width="787" height="294">
 
At the end of February, the People’s Bank of China (PBoC) cut the Required Reserve Ratio for the fifth time in a year – down to 17 percent for large institutions – potentially adding RMB 690 billion in liquidity to financial markets. As we have previously noted, these policy changes are not necessarily stimulatory, as RRR cuts have been necessary to maintain liquidity in the finance sector, given the capital outflow in recent years. 
We continue to expect two cuts to interest rates in early 2016 – bringing the benchmark one year lending rate to 3.85 percent by mid-year. Similarly further cuts to the Required Reserve Ratio are likely to maintain liquidity in the finance sector, with capital outflows likely to continue in the short term. 
After a sharp increase in January (ahead of Chinese new year), new credit slowed significantly in February. Over the two month period, aggregate financing totalled RMB 4.2 trillion, an increase of 23 percent yoy. 
Bank loans recorded slightly slower growth, 19 percent yoy, to total RMB 3.1 trillion. Efforts to tightened regulation around the shadow banking sector has seen a strong increase in bank loans across the past two years. 
The key driver of other credit was corporate bonds, with net issuance totalling RMB 541 billion in January and February, an increase of 110 percent. 
Key components of the shadow banking sector largely cancelled each other out – with growth in trust and entrusted loans (at 111 percent yoy) offset by a sharp fall in banker acceptances (-275 percent yoy). 
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.55.28%20AM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%208.55.28%20AM.png" alt="">
Alan Oster is group chief economist, National Australia Bank, and can be contacted <a href="https://business.nab.com.au/author/alan-oster/" target="_blank">here</a>.
</body></html>

jchancellor-FAypfDUnLy

China's economy at a glance: NAB's Alan Oster

<html><body>
<h3 class="post-title entry-title">GUEST OBSERVER</h3>
<div class="post-header"> </div>
<div id="post-body-5220327253665162227" class="post-body entry-content">
<div>
Headline immigration slows 
</div>
<div>The January <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3401.0Main+Features1Jan%202016?OpenDocument" target="_blank">Overseas Arrivals &amp; Departures</a> figures revealed that permanent immigration into Australia continued to slow into the beginning of 2016, with a net +268,400 permanent and long term arrivals now tracking more than a third below the peak.</div>
<div> </div>
<div>There were some 13,610 permanent departures in January, the highest on record, although ABS research shows that most "permanent" departures actually return to our shores within a year.</div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-Nllm0CzUbOg/VtzVN9aLYzI/AAAAAAAAbsQ/j5EQ-HSsAYY/s640/ARR1.jpg" width="640" height="350"></div>
 <div>The composition of immigrants continues to shift away from New Zealanders and Britons, and towards permanent settlers of Asian origin, now accounting for a record 57.7 per cent share over the past 12 months.</div>
 <img src="https://4.bp.blogspot.com/-1w0a3JXsOt8/VtzVO6qsuFI/AAAAAAAAbsk/Ua4W6MM6LoA/s640/ARR6.jpg" width="640" height="350"> Record high 7.5 million arrivals <div>Despite the soft headline figures those hoping for a significant decline in Australian population growth are likely to be disappointed, with the wider picture being that population growth will probably only slow from extremely strong to strong. Indeed, after accounting for the rapid growth in student visas, total population growth in Australia is probably already rising again. </div>
<div> </div>
<div>In the year to January the number of short term arrivals blazed past 7.5 million for the first time in recording another strong +8.6 per cent rolling annual increase.</div>
<div> </div>
<div>The number of short term departures is still creeping up, but a much more sedate pace, implying an exchange rate driven rebalancing. </div>
 <img src="https://2.bp.blogspot.com/-XRjxdNt05RE/VtzVN3S-ucI/AAAAAAAAbsY/SUn_byjPb0I/s640/ARR3.jpg" width="640" height="338"> <div> </div>
<div>There was a huge increase in the number of holiday makers to Australia in the year to January of +442,000 taking the annualised total up to a fresh high of 3.57 million, while an additional +119,400 folk came to visit friends &amp; family, taking the total for this category up to a record 2.04 million. </div>
 <img src="https://1.bp.blogspot.com/-bqgko3XUhEE/VtzVOrpQBMI/AAAAAAAAbsg/QSKZ6hUP6Gg/s640/ARR5.jpg" width="640" height="348"> <div> </div>
<div>The key reason that population growth is unlikely to slow is the vast projected boom in international students. </div>
<div> </div>
<div>There were some 55,000 education arrivals in January, by a huge margin the biggest January on record, and it seems to be a nailed on certainty that 2016 will be the greatest ever year for the enrolment of international students. </div>
<div> </div>
<div>More relaxed visa rules mean that many thousands of these students will end up becoming permanent residents in time. </div>
 <div class="separator"><img src="https://4.bp.blogspot.com/-MwGAtOVgnCU/VtzVN5KEkSI/AAAAAAAAbsU/BU61yN7ijtA/s640/ARR2.jpg" width="640" height="346"></div>
<div> </div>
<div class="separator">Last, but certainly not least, the explosion in visitors from China has virtually torn the roof off, with an astonishing +57.3 per cent increase from January 2015.</div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-3RkQcEPt8YA/VtzVOttl-yI/AAAAAAAAbsc/JQFSsT-UH4w/s640/ARR4.jpg" width="640" height="348"></div>
 <div>Naturally the most popular month in the calendar year for Chinese visitors will be February, due to the lunar year. The raw original data show that Chinese visitors in that month have ramped up at an astonishing pace:</div>
<div> </div>
<div>Feb 2012 - 66,500</div>
<div>Feb 2013 - 110,400</div>
<div>Feb 2014 - 104,400 </div>
<div>Feb 2015 - 164,400</div>
<div> </div>
<div>It seems likely that Febuary 2016 was another record-breaker, but we'll have to wait another month for the official confirmation of that. </div>
<div> </div>
<div>The wrap</div>
<div> </div>
<div>The full suite of figures appear to tie with DIBP forecasts of population growth bottoming out at somewhere close to 300,000 per annum, before increasing strongly over the remainder of the decade. It is important to note that most of the population slowdown has been in mining and resources regions - the largest capital cities have barely experienced any slowing at all to date. Evidently the composition of immigration moving forward will be very different, with Asia being the key driver of population and tourism growth. --- Chinese iron ore, coke and rebar futures have all hit limit up during today's trade, while crude might even get back to $40. Nice to see. A few mining stocks are going ballistic. </div>
</div>
</body></html>

pwargent-M4siyDbqQY

Asian century tees off in Australia: Pete Wargent

<html><body>
Chinese buyers have helped drive huge price rises in Australia's property market, but the BBC reports Beijing is now trying to prevent its citizens from taking cash out of the country.
Reporter Julian Lorkin noted according to Chinese law, individuals can take a maximum of $50,000 (A$69,800; £35,000) out of the country.
"Chinese banks that once looked away when investors transferred money to outside China are now scrupulously applying rules about the transfer of capital overseas.
"This means fewer Chinese buyers can get enough money out of the country to buy expensive Australian real estate," the BBC said. 
Last year Chinese buyers spent a record A$12 billion on Australian property, with Dr Andrew Wilson, Domain's senior economist, saying China had been a very significant part of the market for the past few years, particularly for high rise apartments in Sydney.
Tim Lawless, from real estate analysts Corelogic, said many Chinese investors had brought money to Australia already, as they had planned to buy property there for several years.
Families could also team up to circumvent the US$50,000 foreign investment limit.
"That will sustain the property market," Mr Lawless said. "Chinese who have cash here are still interested in Australian property.
"However, they are looking for areas that might still have growth, like Melbourne or the Gold Coast. Sydney is past its peak, but prices haven't fallen off a cliff. "
Dr Wilson noted Chinese buyers were still active in Melbourne.
</body></html>

China cash supply for Australian property the 2016 mystery

<html><body>
Li Ruipeng, the Chinese businessman on the run from authorities in China and at the centre of a luxury watch gifting scandal in Canberra, has been hiding out on the Gold Coast, according to the Australian Financial Review.
Mr Li, whose instant noodle and property company owes millions of dollars to suppliers, staff and money lenders across China, is also in legal trouble in Australia, was in Australia as recently as last week.
Court documents show Mr Li is involved in 27 legal disputes on the mainland, owes creditors at least $30 million and is being investigated for illegal fundraising.
Mr Li often boasted of his political connections in Australia. He displayed photographs of these contacts in his office, including the now infamous shot of him in June 2013 with ousted human services minister Stuart Robert, former Australian prime minister and then opposition leader Tony Abbott and Ian Macfarlane, who at the time was opposition industry spokesman.
At the dinner Mr Li gave all MPs, as well as the wives of Mr Abbott and Mr Robert, designer watches. They were initially accepted, assumed to be fakes, but later returned.
Greg Roberts, compliance manager at Wealthcare Custodians, is taking legal action against the Chinese businessman.
Wealthcare, which was set up in 2005, had hoped to leverage Mr Li's contacts and build up a business providing advice to wealthy Chinese investors, particularly those looking to take part in the Significant Investor Visa program.
Sydney firm Wealthcare Custodians Limited confirmed it was taking legal action against its former chairman after he disappeared last year owing almost $300,000.
Wealthcare offer the investor the ability to consider a number of investment options; from the safety of bank and foreign exchange accounts over the major universal currencies, as well as a more actively managed growth fund. 
The growth fund offers a range of diversified, actively managed property and manufacturing opportunities, spread over rural, residential, retail, commercial, industrial, tourism and infrastructure sectors. Of particular focus are the areas of hospitals, aged care facilities and educational facilities in areas of need around Australia.
Its Australasian Infrastructure Trust was specifically designed and created to enable high net worth Chinese investors and their families around the world, to avail themselves of the Australian Federal Government’s Significant Investor Visa (SIV), which allows qualifying participants to apply for permanent residency in Australia.
</body></html>

Chinese Rolex giver being pursued by Wealthcare

<html><body>
Property group Chiwayland Australia has acquired a 2,980 sqm corner site in Sydney’s northern suburb of Ryde for $18.6 million.
The site at 771-775 Victoria Road is zoned for a mixed-use project which has a compliant concept scheme for 90 residential apartments. It was formerly a car dealership.
The development is close to Top Ryde Shopping Centre and public transport.
Chiwayland International is the property division of conglomerate Chiway Group and is involved in residential and commercial development in China, including affordable housing, office buildings and education.
The company entered the Australian market in 2014 and the acquisition brings the company’s development pipeline to more than $872 million in Australia including joint ventures.
Chiwayland Australia’s director Brian Chen said the acquisition is part of its strategy to acquire prime sites in Sydney’s growth suburbs close to transport links upon which to develop mixed-use projects.
“Through the planning process, we are exploring ways to maximise urban outcome and community benefit,” Chen said.
The acquisition follows the company’s purchase of a site in Parramatta for $27 million in January last year with plans to develop a residential tower with about 350 apartments.
Chiwayland is currently developing several residential projects in Sydney and Brisbane. It has recently launched its new $78.9 million residential development in Sdyney’s Epping, known as Marine’s Hill, comprising 90 apartments.
</body></html>

prateek24-ezbwHMbNAk

Developer Chiwayland buys mixed-use site in Sydney’s Ryde for $18.6 million

<html><body>
The Treasurer Scott Morrison has approved the $280 million sale of the Van Diemen’s Land Company to Chinese company Moon Lake Investments on the condition that it complies with Australian tax law.
The Foreign Investment Review Board approved the sale which would guarantee job retention and additional jobs.
The sale of Tasmania’s biggest dairy was previously agreed with TasFoods consortium but the New Plymouth District Council (NPDC), its New Zealand vendors, then accepted the better offer from Moon Lake.
Moon Lake's Lu Xianfeng said they wanted to further develop Australasia’s biggest dairy.
</body></html>

Van Diemen's Land Tassie dairy sale to Chinese by New Zealand owners

<html><body>
Chinese investment in Australia’s real estate market has not declined despite fears that the RMB’s devaluation and stock market crisis there would impact outbound investment, and the trend is expected to continue, according to a Knight Frank report.
Chinese investor — big and small — appetite for overseas real estate was also supported by the growing need for diversification from the Chinese market, says the report. 
The China-Australia Free Trade Agreement, the Qualified Domestic Individual Investor or QDII schemes are expected to drive more Chinese investment in the Australian property market, says Knight Frank’s second global China Outbound Real Estate Investment report: New Waves, New Destinations. 
Sydney and Melbourne alone attracted a total of US$3.8 billion in Chinese investment in 2015, next only to Manhattan, New York at US$5.78 billion. 
<a href="/images/2016/02/24/Screen%20Shot%202016-02-24%20at%208.44.56%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/24/Screen%20Shot%202016-02-24%20at%208.44.56%20AM.png" alt="">
Total Chinese outbound capital doubled to nearly US$30 billion in 2015 from 2014, according to the report.
“Investor interest in Australia, particularly in Sydney, has not diminished as many had feared – even after the latest RMB devaluation and with demand for natural resources weakening,” said Knight Frank’s head of Research &amp; Consulting, Australia, Matt Whitby.
“Australian prices, coupled with strong Chinese buying power and continued weakness in the Australian dollar, has continued to attract capital inflow.”
Chinese investment into the Sydney and Melbourne markets skyrocketed in the from 2010-2015 period, added Knight Frank’s head of Asian Markets, Australia, Dominic Ong. 
“Given the level of growth that we have experienced over the past five years, we anticipate that the outflow of Chinese investment into Australia will remain at steady and strong levels but it will be difficult to beat 2015,” he said. 
CIC’s purchase of the Investa Portfolio for $2.45 billion was the biggest deal that boosted the figure last year, he added.
According to Ong, Chinese investment activity will be concentrated on development sites and office investments, focusing on prime product in the Sydney and Melbourne markets. 
He predicted some growth in 2016, but potentially not levels as high as Australia has seen in the last few years.
“I expect demand will be strong for the next three to five years, but what might affect the transaction volume will be supply – the lack of available prime stock available in the best locations,” said Ong.
 
</body></html>

Chinese to continue investing in Australian real estate in 2016: Knight Frank

<html><body>
Property developer China Aoyuan Property Group Ltd has announced two more projects after tasting success with its first Australian foray, One30 Hyde Park in Sydney.
Hong Kong-listed Aoyuanpaid $18 million for the 1,000 sqm site at 188 Maroubra Road in Maroubra Junction. Plans to develop 70 apartments have been submitted to Randwick Council for approval and the developer expects to market it by the end of this financial year.
It has also entered into a conditional agreement to acquire a strategic site in Melrose Park, in the municipality of Ryde.
The Melrose Park project is on a 10,000 sqm site and is earmarked for the 2018/19 financial year. Aoyuan said it will continue to build its development pipeline in Australia.
“Aoyuan’s first overseas project, One30 Hyde Park, has impressed us with its outstanding sales performance, and we are confident that it will achieve a gross sales target of close to $400-million,” said Jacky Chan, head of Aoyuan’s Australian operations.
He said the acquisition of the Maroubra and Melrose Park sites will further the group’s strategic expansion plans and also build a strong brand awareness in Australia. 
“Australia is not a short term proposition for us. We are committed to Australia. Last year, the Australian contracted sales performance contributed to nearly 7% of the group’s total contracted sales performance,” he said.
Aoyuan other projects are in Guangdong, Chongqing, Liaoning, Jiangsu, Zhejiang, Anhui, Hunan, Guangxi and Jiangxi. It said as of June 30, 2015, the total GFA of land bank was approximately 12.76 million sqm.
</body></html>

China’s Aoyuan Property Group expands Sydney footprint, buys Maroubra site for $18 million

<html><body>
If you pick up a newspaper these days, you had better have some Xanax handy. The headlines from China can be pretty scary.
But the truth is, the situation is more mixed than most fear-mongers would have you believe.
If you wear a miner's light on your hard hat when you go to work in the morning, then, sure, you have a right to worry that China's industrial economy could slow further.
But if you work or invest in real estate, or for that matter in the fields of education or tourism, you can rest easy.
You see, China has at least two different economies. The old industrial economy is slowing and being cleaned up. Even as the government moves to shut down polluting, outdated factories, consumer demand is booming, which means more buyers for Australian property, as well as for our tourism and education.
China doesn't rely solely on industry any more than Australia relies solely on mining. Industry only accounts for about 35% of GDP, but services account for more than half.
Credit Suisse sent me an interesting chart last week. It showed that China is importing about 20 percent less machinery and commodities like coal, but spending 80 percent more on international tourism. This is reflected in the fact that more than one million Chinese tourists came to spend their cash in Australia last year, the most ever.
Australia's educational sector is our number one export, after coal, iron ore and natural gas. Chinese outnumber all other foreign students in university, English-language, secondary and nonaward classes.
This is the same scenario we are seeing in real estate. With Chinese developers committed to billions of dollars of residential new construction in Australia, and Chinese buyers purchasing off-the-plan in large numbers, Australia finally has something it has been missing for decades: money to build.
Awe have spent years in a housing affordability crisis, but Chinese capital is finally making it possible to construct enough new homes to meet market demand.
In the past decade, China supported Australia's economy by funneling huge amounts of cash into our mining industry. In the coming decade, it looks like it will do so via real estate, education and tourism.
It's no coincidence that the famous Sydney Harbour Bridge Climb now offers a sky-high karaoke option for Chinese tourists.
Here's something that will make that shift sweeter: tourism, education and construction keep more than 2 million people working in this country, while mining just provides jobs for fewer than 200,000.
China's current expansion won't last forever, but experts like UBS global CEO Sergio Ermotti believe the rise of the Chinese consumer could last as long as did the commodities boom we just lived through.
Even at a pessimistic growth rate of 6.5 percent, China's economy will double in size by 2032.
Andrew Taylor is the founder and chief executive officer of sales and marketing at <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him <a href="https://list.juwai.com/" target="_blank">here</a>.
</body></html>

China

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

China

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News