The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

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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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>
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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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"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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MarkBeeson-yMCRHrkkic

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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