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

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The ANZ Asian analyst Martin Whetton does not believe the pricking of the sharemarket bubble in China will seriously affect Chinese buying of Australian apartments and dwellings when asked by Business Spectator's Robert Gottliebsen. 
RG: Do you think that the Asian investors and the Chinese investors will keep pumping money in to our apartments?
MW: Well yeah, probably they will. I guess, if you look at the perspective of the size of how much money there is in China and, as I said before, about 20 per cent of the household wealth is tied up in property and equities. If more of the household wealth was tied up in property outside of the country, if they were to say we don’t want to own Chinese property anymore, we don’t want to own Chinese equities, and they had that liquidity themselves, I guess a relatively liquid asset like Australian property would be something that is still appealing to them. It’s still a market that’s going up for them at the moment and with the size of the Chinese population, I think there probably still would be some encouragement for that to happen.
At the same time, I guess you could argue if they ran out of money, which I don’t think is a hugely strong argument at this point, but if they were to run out of money, then there would be a slowing down of the natural number of people coming in from China to buy in the property market. I think the pace of that would slow naturally anyway, not through any discouragement from the state governments, at least on the east coast, who are swimming in the revenues of property turnover, but probably for the moment I would say you’re still going to get some buoyancy from China.
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jchancellor-FAypfDUnLy

ANZ's Martin Whetton sees no halt by China in Australian property acquisitions

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Will fresh Chinese property buyers still come to Australia?
Will existing off the plan contracts settle?
What decisions will the Chinese government make on fund transfers, with its formidable capaclty to control many aspects of its economy.
Will all Chinese developers proceed with their overpaid site projects?
Any Australian property market Chinese certainties are now off after the recent stockmarket rout. 
Blogger Pete Wargent recently uploaded a 25 year chart for the Shanghai Composite, indicating just how explosive the stock bubble had become in China. 
He noted that he make no pretensions of having special or unique insights into China's stock market craziness.
And I suspect no-one really knows all the likely property outcomes for Australia. 
We are all interested observers. About 8% of Chinese wealth is held by the 1.4 billion Chinese in their stockmarket - often considered punting money. Financial services company GaveKal said in a recent report the pain of the crash is affecting probably no more than 20 million to 30 million Chinese households, most of which range from upper middle class to very wealthy.
<div><a href="https://3.bp.blogspot.com/-7FoNXS2m2iM/VZyUiG-EIRI/AAAAAAAAWvo/fa1aXO627rk/s1600/ssec.jpg" target="_blank">Click to enlarge </a></div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-7FoNXS2m2iM/VZyUiG-EIRI/AAAAAAAAWvo/fa1aXO627rk/s1600/ssec.jpg"><img src="https://3.bp.blogspot.com/-7FoNXS2m2iM/VZyUiG-EIRI/AAAAAAAAWvo/fa1aXO627rk/s640/ssec.jpg" width="640" height="272"></a></div>
The turmoil on the Chinese sharemarket raises concerns, challenges and opportunities for Australian real estate, Robert Harley wisely concluded in today's Australian Financial Review.
China has been the single-largest source of offshore real estate investment here, with $12.4 billion of Foreign Investment Review Board approvals in 2014-15, and has been rising and spreading fast.
No one depends more than Australia's billionaire apartment developer, Meriton's Harry Triguboff who told Harley:
"At this stage, we don't feel anything has changed. With the dollar coming down, they want our apartments even more."
Most current commentary suggests Chinese sharemarket turmoil will prompt the Chinese away from stocks to other asset classes, especially real estate. But I'd expect a few non-cyclical curve-balls. 
 
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Any Australian-Chinese property market certainties are off after stockmarket rout 

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Volume sales of units in Tier 1 Chinese cities increased 65% in the four weeks to July 5 2015 when compared to the same period last year, despite the country's economic turmoil. Shenzhen unit volume sales increased 174% when compared to last year.
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According to Macquarie Wealth Management China Property research, 12 developers reported June sales, amounting to 34% month on month growth.
Evergrande’s sales for the first half of 2015 increased 26% year on year.
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<a href="/images/2015/07/08/macq.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/08/macq.jpg" alt="">
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mick.cee-iDmgDDAmu8

Chinese cities property volume sales going strong: Macquarie Wealth Management

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The giant Chinese conglomerate, Wanda Group and its online payment platform, 99 Bill, have introduced China's first commercial property crowdfunding project called "Stable Earner No.1."
As Wanda's first Internet finance product, "Stable Earner No.1" is a product based on Wanda plazas. 
Funds raised will be directly invested in the construction of Wanda plazas in each city. 
Investors will be awarded with the right to profits from such plazas and enjoy double returns including shop rental and added value of properties of Wanda Plazas. 
The expected annualized rate of return may reach over 12%.
"With a minimum initial investment amount of Rmb1,000 , this project is revolutionary as it lowers the traditional minimum investment thresholds of commercial property, making it possible for ordinary investors to own quality property and share the hefty investment returns with leading commercial property developers," the company press release advised..
Wanda boasted of its mature and professional ability as well as experience to operate and manage commercial real estate.
"Each Wanda Plaza is where people are concentrated and is extremely popular among merchant partners.
"In terms of commercial management, Wanda has set world records that occupancy rate and rental collection rates have both exceeded 99% for many years.
"In addition, the "city center" effect implies great potential of property appreciation after a Wanda plaza is constructed.
"All of this provides reliable guarantee for investors to gain stable and sustained high profit."
Fundraising will be from June 12 to June 15 2015. Investors can view project details by logging in 99 Bill platform or downloading 99 Bill wallet APP.
Investors may opt to cash out of and sell their investment three months after the establishment of the project, the first meaningful financial innovation project in the Shanghai Free Trade Zone and in China.
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Wanda suggests 12% returns in Shanghai crowd funding initiative

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Chinese UHNWIs are exploring Australian investment opportunities and their investment strategies are far ranging. 
According to the latest Knight Frank report, Australia has recorded exponential growth in investment over the past few years, culminating in just over $4 billion invested into the country by Chinese investors in 2014, across both commercial and development sites.  
Knight Frank’s Group Director of Research &amp; Consulting, Matt Whitby, one of the most powerful drivers “pushing” capital out of China, has been the continued consolidation of China’s residential real estate market.
“In March 2015, all of the 70 major Chinese cities recorded annual house price falls, compared to March 2014 when only one city recorded an annual decline.
“Recent cuts to China’s lending rates and the Reserve Requirement Ratio (RRR), may help boost confidence in the property market. 
"However, we expect property prices to remain under further pressure in 2015, as prices are unlikely to rebound while developers continue to clear inventory and pull back on new projects. 
"While this remains the case, we believe this will continue to make offshore expansion a viable option over at least the short to medium term.
"It is clear that the Australian cities are attracting significant investment, relative to the size of their economies. The economies of London and New York are much larger than the combined economies of Sydney and Melbourne, however they were outpaced in 2014 as a place to invest for the Chinese,” said Matt Whitby.
<img src="/images/2015/05/20/700_knight_map.jpg" alt="">
According to Matt Whitby, the Australian currency has also led to increased investment. 
“The Australian Dollar has depreciated by around 33% against the Chinese Renminbi since the last peak in April 2011, and 19% since mid-2014, which has largely strengthened the purchasing power of Chinese investors. 
"Overseas investment has become relatively cheaper. 
"Many Chinese and Hong Kong investors see this as a good opportunity to acquire foreign assets.”
 
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Chinese investors liking Sydney, Knight Frank

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The Foreign Investment Review Board released its <a href="https://www.firb.gov.au/content/Publications/AnnualReports/2013-2014/index.asp" target="_blank">Annual Report for 2013/14</a>, which made for interesting reading.
The most remarkable point of note was how accurately it conformed with expectations, coming in almost bang on - exactly in line - with previous guidance.
The 2014 Annual Report made history confirming that as expected China was by a huge margin the most influential investor in Australia with a thunderous $27 billion. 
By way of comparison the nearest competitor was the US at just $17.5 billion.
Unsurprisingly the main destination for foreign investment was real estate at $74.6 billion, a massive $22.7 billion increase on the prior year.
And, as I <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">covered here last week</a>, proposed foreign investment in residential real estate did indeed more than double in fiscal 2014, from $17.2 billion to $34.7 billion.
Let's take a look at what this means for our property markets.
All real estate proposals
Across all classes of real estate, the number of proposals in 2014 was...whoa.
<img src="https://2.bp.blogspot.com/-JKu1UBbT6PU/VULsRL9DabI/AAAAAAAAVAA/fX1bUkKJq-Q/s1600/FIRB1.jpg">
And the increase in real estate applications decided by value was...whoa!
<img src="https://4.bp.blogspot.com/-sEg5HWgFv4g/VULsRP-2f4I/AAAAAAAAVAE/PgeZnmdEpc8/s1600/FIRB2.jpg">
Note that these figures include all classes of real estate.
This all forms part of a very real dichotomy for our real estate markets. 
On the one hand competition from developers is adding <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">unprecedented upwards pressure on land values</a> in the largest capital cities, particularly after the signing of the China-Australia Free Trade Agreement (ChAFTA). Developers from China, Hong Kong and elsewhere are consistently overpaying for sites in Sydney and Melbourne, inevitably pushing up prices.
On the other hand, we are seeing a resultant <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">boom in the number of high rise apartments</a> being approved, sold offshore and constructed, and this is set to put further downward pressure on unit rents.
Residential approvals
With regards to residential property specifically, both the number and value of proposals approved leapt dramatically in fiscal year 2014.
<img src="https://4.bp.blogspot.com/-x0_SIgy8gms/VUXmHz67cUI/AAAAAAAAVCU/zEB3gzsc1Cg/s1600/FIRB.jpg">
A large proportion of approvals continue to be for assets of under $1 million in value. If you check this blog back to its inception you will find that one of the chief reasons that I long ago picked out Sydney real estate as the out-performer was that I believed eventually the Aussie dollar must return from the stratosphere, and foreign investment would explode in Sydney and Melbourne.
The timing of currency movements and the impacts thereof are impossible to predict accurately; but that <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">time is now</a>. 
State by state
Anyone with a working pair of eyes and a few frequent flyer air miles under their belt would know that Melbourne, Sydney and south-east Queensland see the overwhelming bulk of foreign investment in residential real estate. 
New South Wales (39%) and Victoria (41%) accounted for 80% of foreign residential approvals by dollar value in 2014, with Queensland (11%) and Western Australia (5%) mopping up most of the remainder. South Australia accounted for just 0.4%.
<img src="https://1.bp.blogspot.com/-8PC1ZKJp21Y/VUXmOaJ5AXI/AAAAAAAAVCc/i6ZFmCBcubc/s1600/FIRB1.jpg">
It is important to recognise that most of this investment in residential real estate was approved for new dwellings (11,338 approvals), rather than for existing property (7,915), vacant land (3,150), redevelopment (534) or developer approvals (103).
By country
Finally, as projected China has come from the borders of oblivion to be far and away the away the greatest foreign investor in Australian assets.
To be blunt, this could come as no surprise whatsoever to anyone who works in the industry, the ever-increasing volume of inquiries (both residential and commercial) forcing a few people over time to change their opinions, including myself.
<img src="https://1.bp.blogspot.com/-rwPRoyniJyk/VUXmUih2nvI/AAAAAAAAVCk/3O7hzwiS56I/s1600/FIRB2.jpg">
China was by an enormous margin the biggest investor in real estate, manufacturing and mineral exploration, and will soon become the leading investor in Australian services industries too.
If you believe that this trend is going to tail off any time soon, think again.
After the signing of the ChAFTA, the behemoth Chinese Greenland Group stated that it sees "no ceiling" to the level of funds it is prepared to invest in Australia, with agriculture next on the hit list. The commercial space is seeing a spate of enormous deals being written. In the past year both the Hilton Hotel and the Sheraton on the Park in Sydney have both been taken out by Chinese investment groups Bright Ruby and Sunshine Insurer for Group $442 million and $463 million respectively, while Goldfields House at 1 Alfred Street in Circular Quay also went recently for $425 million.
The wrap
Approved foreign investment in residential real estate more than doubled in 2014 and will continue to play a huge role in Australia over the years ahead, driven predominantly by Chinese capital.
This is helping to drive a record increase in dwelling supply, albeit <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">largely of highrise apartments</a>.
Clearly the new dwellings market in the most populous capital cities is increasingly being shaped by offshore funds, and the trends by country present not-so-subtle hints as to what is happening in the established property market too.
There are now approaching 400,000 Chinese born Australians, and there around 1 million people in Australia of Chinese ancestry. 
2014 also saw yet another huge increase and a <a href="https://petewargent.blogspot.com.au/2015/04/asian-capital-is-impacting-our-property" target="_blank">record number of Chinese short-term arrivals</a> at around 800,000. More than 750 business investment visas have been issued to qualifying "Significant Investors" since 2012, most of them to wealthy Chinese as intended.
Multiple pathways - as well as the evident desire - clearly exist for foreign-sourced capital to find its way into established property too, and my view is increasingly that this is happening, particularly in Sydney, and probably Melbourne. 
I expect if you asked others who work in property "at the coalface" in these two cities they would tell you the same.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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What's really happening with foreign buyers and property? Pete Wargent

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A 5,050 square metre Mosman residential holding – the Sydney suburb's largest harbourfront estate – has been offered for sale.
It has been listed by its $20 million, early 2012 buyer, Ying Li. 
Title Tattle gleans the seller already has a higher offer on the table.
They are intent on briefly testing the market through <a href="https://www.domain.com.au/property/for-sale/house/nsw/mosman/?adid=2011950616&amp;sp=2" target="_blank">the House 18 World Square marketing campaign</a>. 
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The lowdown on the reason for the top end trophy home listing was the family doesn't want to embark on its likely three year replacement home construction project.
It was bought in 2012 from the retired car dealer Laurie Sutton and his wife, Di.
The residence had been the Sutton’s home for almost 35 years. 
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But the estate was best known as being the home of the Pick a Box presenters Bob and Dolly Dyer, who sold in 1977 for $376,960, when they headed to Queensland. 
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Despite renovations over the past three decades, there were still traces of the Dyers' day, including the imposing sandstone fireplace in its living room.
The Bay Street offering has been listed by Michael Zhu at House 18 World Square agency.
The 2012 purchase highlighted a small, but emerging, trend of buyers of Chinese origin buying luxury homes around Mosman. 
It is not known if the acquisition was by a foreign buyer requiring FIRB approval or new migrants, expats or long-time citizens, through Ying Li gave his address for official purchasing purposes as a solicitor's office at Colin Biggers &amp; Paisley.
<img src="/images/stories/sutton1.jpg">
The Bay Street tropical holding is like Hawaii meets Hamilton Island on Middle Harbour on Quakers Hat Bay.
<img src="/images/stories/sutton6.jpg">
Bob Dyer, who was a hillbilly Tennessee vaudeville singer on his arrival in Australia in 1937, had paid £15,068 for the property in 1950, after upgrading from a house on the Balmoral side of Mosman as he earnt increased wages from his radio gig.
<img src="/images/stories/sutton2.jpg">
Dyer went on to host the television show BP Pick a Box between 1957 and his retirement in 1971.
Dyer, with his raucous "Howdy, customers" greeting, presided over contestants who faced a sudden-death decision of choosing between "the money or the box" with the secret prize.
<img src="/images/stories/bobdyer.jpg" width="150">
He died in 1984. His widow – who, as Dolly Mack, had been a Sydney Tivoli showgirl in her teens – lived for another 20 years.
The listing in 2009 <a href="https://www.propertyobserver.com.au/new-south-wales/mosmanites-playing-property-pick-a-box-with-caution/2011081251139">had expectations of beating Mosman's $22.5 million house price record</a>.
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Mosman's $20 million plus Pick a Box harbour estate listed by upgrading Chinese vendor

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The emergence of China as a source of hotel property capital has major implications for Australia, according to industry veteran Stephen Burt, the Colliers International Asia Pacific Hotels managing director.
"This phenomenon of a concentrated source of capital is nothing new," said Burt.
"In the mid to late 1980s it was Japanese capital dominating Australian hotel property, and the 1990s post-1992 was dominated by Singaporean investors.
"However, on this occasion the capital flow is larger and more pervasive in terms of property profile.
"During 2015 China based capital (mainland and Hong Kong) may account for over 60% of major hotel transactions throughout Australia.
"This will range from $4 million motels to $400 million plus hotels."
Burt identified four major implications:
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<li>
"Many Chinese companies buying now are new to hotel investment. They are institutions with minimal or no existing hotel investment exposure or often companies that created wealth through non-hotel industries. Therefore, hotel operators will need to ensure their new owners understand the key terms of the hotel operating agreement; namely the budget approval process, cash flow management, approval process for senior executive appointments, the capital expenditure approval process including owner’s contractual obligations;
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<li>
"The majority of the CEO and chairpersons for the new Chinese investors cannot speak English. This is not a criticism, just a fact, just as most Australian senior executives doing business in China cannot speak a Chinese dialect. However the point is, an important ingredient for successful hotel investment is good communication between the owner and operator. Clearly, there will be bilingual intermediaries but we know what happens when a story is told to one person, who then passes the story to another person. Therefore, make sure key messages (hotel may fail to make budget!) are correctly conveyed to the appropriate operative in China whom will be the person ultimately approving the annual trading and cap ex budget;
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"The degree of foreign ownership of Australian hotels over the next few years will be extensive. This may lead to calls from certain non-aligned sectors to restrict foreign ownership. I would warn (and conflict acknowledged) this would be a negative outcome for the hotel industry. Hotel investment is like mining investment; it offers the opportunity for good returns but requires significant capital. Our mining industry would not have its current scale if it had to rely too much on domestic capital. It is the same for hotel property; and
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"Chinese investment in the hard assets will further stimulate Chinese visitation to Australia. The challenge will be not to fall over ourselves to overtly pamper Chinese visitors so that their Australian experience is diluted and becomes an extended China experience. This was a mistake with the Japanese visitor boom of the 1980s which failed to be sustainable. Chinese visitors come to a foreign country to experience local cuisine, and to meet the locals and other international visitors; not to be herded on tours exclusively for Chinese. They like to shop independently and not be forced into specific shops."
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The influx of Chinese investors was headlined by the $463 million sale of Sydney's Sheraton on the Park hotel to Chinese insurer Sunrise.
JLL recently noted Chinese outbound capital surged to over US$16.5 billion in 2014 as institutions, as developers and private investors sought to take advantage of the buoyant real estate market across the globe. 
For the first time ever, in 2014 Chinese buyers spent more on commercial real estate outside of China than domestically, a significant milestone and a sign that the domestic market is entering a new phase.
It noted following a slower year for transactional activity in China in 2014, outbound investments made up 52% of all real estate transactions of Chinese investors within the commercial sector.
Office and residential land acquisitions accounted for 85% of all Chinese purchasing activity, although JLL noted strong demand for hotel and hospitality assets. 
While Europe topped the list of favourite investment destinations, attracting over US$5.5 billion, Australia emerged as a new favourite among Chinese investors in 2014 with over US$3 billion flowing into the country. 
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Chinese hotel buying is larger than the Japanese 1980s push: Colliers International

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Guest observation
There can’t be too many people in Australia who don’t recognise that the health of the Australian economy is increasingly determined in China. The boom and all-too-predictable bust in the resource sector is the most consequential manifestation of this possibility.
There is now a growing – if somewhat belated – consensus that the undoubted potential benefits of being a reliable and convenient resource exporter were not captured and very unevenly realised. Because the vast majority of “Australia’s” resource sector is actually foreign-owned, any government would have had difficulty influencing its behaviour or reining in the manic investment splurge that has contributed to the collapse in resource prices.
Although much of the profits of the boom disappeared overseas, state governments in particular did enjoy a major boost to revenues. However, little thought was given to the long-term strategic use of the economic windfall the boom created. The contrast with Norway and its very different approach to collective investment is an indictment of the short-term, short-sighted nature of policymaking in this country.
Older readers may remember we’ve been here before. During the 1970 and 1980s, Japan was our principal trade partner and there was an expectation – here and in Japan itself – that the good times would continue to roll. There was also a backlash, in this country and the US, about Japan’s growing economic power and its investment strategies.
Although it was Japan’s long-term strategic investments in resources that ought to have caused policymakers most concern, it was “trophy” investments in the US and real estate purchases on the Gold Coast that caused the most angst among the general population.
This historical experience is worth keeping in mind as it is being repeated, only this time under a Chinese rather than a Japanese banner. Successive governments have been decidedly uneasy about Chinese investment in resources and agriculture, fearing the same kind of “strategic” investment rationale and thinking that once caused such trepidation about Japan.
Equally significantly, Chinese investment in real estate is also beginning to alarm policymakers and the general electorate alike.
Nothing epitomises the growing policy challenge facing the Australian government more than Joe Hockey’s surprising decision to force prominent Chinese business figure Xu Jiayin to sell his A$39 million Sydney mansion because it contravened foreign investment laws.
Given that many observers think that the Foreign Investment Review Board is normally a somnolent, under-resourced paper tiger whose regulatory reach is patchy, inconsistent and easily avoided, its role in this affair is noteworthy.
While this decision would seem at least partly motivated by the desire to be seen as responding to Sydney’s growing real estate bubble, it highlights a number of more fundamental challenges for government. First, is the government’s principal constituency the Australian electorate or the “international investment community”?
Real estate agents are – surprise, surprise – bleating about the negative signal this decision sends to would-be investors in China. This argument is easily refuted as specious and self-interested. Productive investment – even in new real estate – ought to be welcomed, but buying existing stock simply drives up its already inflated value and prices locals out of the market.
The dangers of not regulating real estate investment can be seen in London, another global city with similar problems. In London, “Russian oligarchs”, as they are politely known, are emblematic of a process that has seen the UK’s capital become increasingly disconnected from the rest of the country.
A similar process is at work in Australia, with potentially even more problematic consequences. China’s new rich are increasingly looking for a safe place to stash their cash in the event that the Chinese economy or – even more worryingly – the Chinese political system implodes.
Even more problematically, much of this new wealth has questionable origins. It is no coincidence that capital flight from China is gathering pace at precisely the same time that Chinese authorities are involved in a seemingly genuine <a href="https://www.afr.com/p/business/property/corruption_crackdown_sends_ripple_yMp1juvVwXuL3WnHMgXJXN">attempt</a> to crack down on corruption.
One direct consequence of China’s domestic policy initiatives has been to encourage those who fear being exposed as corrupt to shift their ill-gotten gains offshore. The Chinese government is seeking greater co-operation from the Australian government in identifying and seizing the assets of corrupt officials who have fled to Australia.
If the message this sends to China is that only bona fide productive investment from reputable sources is welcome in Australia, it’s hard to see why that’s a problem. In a global era, governments around the world have to decide whose interests they serve and use the tools that still remain available to them to actually manage economic and social outcomes.
The consequence of simply leaving things to market forces is not difficult to predict: great powers and economies have always shaped lesser ones, all other things being equal. At a time when voters everywhere are increasingly cynical about politics, the dangers of not acting in the endlessly invoked “national interest” are becoming increasingly clear.<img src="https://counter.theconversation.edu.au/content/38376/count.gif" alt="The Conversation" width="1" height="1">
Mark Beeson is Professor of International Politics at University of Western Australia.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/the-great-chinese-investment-conundrum-38376">original article</a>.
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The great Chinese investment conundrum: Mark Beeson

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Australian banks are really dotting their i’s and crossing their t’s with prestige property lending in 2015, according to the Melbourne buyers' agent Mal James.
"It is obvious that there have been directives from the top through most banking hierarchies," said James.
"Prudential banking is a good thing, just so long as it’s fair and equitable to local buyers as well," he suggested on the issue of offshore borrowings versus local.
He added the banks will lend if local buyers get in shape – with the right valuations, right loan to value ratios and updated earnings figures.
<div id="attachment_49545">But the now "massive differences between the agents quote and the end result" was becoming a major issue, he said.</div>
"Many Chinese buyers have worked out agent quoting, but some local buyers appear to have not.
"Chinese buyers have in many cases no real contact with agents and in many cases can’t even speak English, yet they are able to buy well and locals are not.
"Chinese buyers form their own opinions on values or get assistance from their friends or buyer advocates.
"Local buyers listen to agents, who fill their heads with mush."
<img src="https://marketnews.com.au/wp-content/uploads/Quoting-Bidding-597x448.jpg" alt="Quoting Bidding" width="597" height="448">
<a href="https://marketnews.com.au/2015/03/some-chinese-buyers-have-worked-out-agent-quoting-but-many-local-buyers-appear-to-have-not/" target="_blank">A James Buyers Agency graphic</a> (above) was used to show in red the agent quote on offerings in Brighton, Kew and Hawthorn.
The orange is the Chinese bidding which was consistently high across the board. He said his agency had some Chinese buyers on its books.
The blue is what Mal James bid and the black boxes is the range James Buyer Advocates gave to its clients the week before the auction on where it felt the home would sell.
"See how consistent it is with three different agents on three different homes in three different suburbs," said James.
"During the first few weeks of 2015 it was understandable for agents and advocates and buyers to get it wrong as the market shifted big time and yes, agents and advocates can’t get it right every time (but they shouldn’t get it wrong every time either)."
He noted many were underestimating the power of the inner Melbourne prestige market, saying "they think it is an aberration. 
"We do not share that view while the fundamentals are so obvious and so strong. 
"Of course we have no idea how long it will last but the bidder depth from overseas buyers is as David Hart from Brighton Buxton described it – 'profound'."
He advised values change dramatically with:
+ Building Quality + Chinese Bidding + Better Precincts + Building Size + Auction Volcano Interest - Poor Floor plan - Poor Land Features - Poorer Precincts - High Vendors
James also noted some houses - especially ones that cannot be bulldozed are actually discounting their land value; "such is the insatiable appetite by overseas buyers for land you can build on."
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