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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

China

<html><body>
House sales in China still follow certain distinct patterns, despite the recent overall downturn.
The holiday associated with the new lunar year have a sales pattern too.
Macquarie Wealth Research, with CREIS, have charted the <a href="https://osio-china.com/2012/11/16/chinas-city-tier-system/" target="_blank">Tier 1 (T1)</a><a href="https://osio-china.com/2012/11/16/chinas-city-tier-system/" target="_blank"> cities </a>- noting sales during the week around Chinese New Year always posted a week on week decline over past three years, followed by a sharp week on week rebound.
<img src="/images/2015/03/04/chart-march-4-one.jpg" alt="">
The T1 cities include Beijing, Tianjin, Shanghai, Nanjing and Shenzhen. 
</body></html>

jchancellor-FAypfDUnLy

Chinese new year house purchasing patterns: Macquarie Wealth Research

<html><body>
Savills Australia open its Sydney Chinatown office last week to coincide with the Chinese New Year celebrations.
Located in Dixon Street, the new Chinatown office will showcase a selection of Savills residential listings.
The NSW Premier Mike Baird popped by the celebrations that included the traditional lion dance and firecrackers, to bring good luck and fortune for the year ahead. 
<img src="/images/2015/02/25/chinatown-feb-25-three.jpg" alt="">
NSW Premier Mike Baird (second rear from the right) attends the opening of Savills' Chinatown office opening. Photo supplied.
Declaring the Savills Residential Projects office officially open was Paul McLean, Savills CEO, Australia and New Zealand who hoped the close identification with Chinatown would "make Savills not just an important business presence but a valued community one also.”
“With the growing demand for residential property, both from local and international buyers, we felt there was a need to establish a presence in Chinatown," Ged Rockliff, head of residential projects, Savills Australia said. 
“This also reflects our rapidly changing market and the need to not only focus on local buyers but to service the growing local Chinese community and the wider international market." 
Savills has over 600 offices throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.
The opening comes as the number of Significant Investor Visas granted by the federal government has had 89% of all approvals from China. Hong Kong is the next most popular source country, with 3.5% of visas granted.
Victoria has attracted most of the visas granted, followed by NSW.
</body></html>

Savills open Sydney Chinatown office as SIV numbers rise

<html><body>
Last year saw the completion of more towers of 200 metres or over than any other year on record.
According to the Council on Tall Buildings and Urban Habitat (CTBUH), a record 97 buildings of 200 metres or higher were built in 2014, 11 of which were "supertalls" – buildings 300 metres or taller.
Only 30 of last year's 200 metre plus buildings are from outside of Asia, with China contributing 58 of the completed towers.
After last year's record breaking year of skyscraper construction, there are a total of 935 buildings that surpass the 200 metre high mark in existence around the world.
Here are eight of Property Observer's favourite Chinese skyscrapers of last year.
<ul>
<li>Wangjing SOHO, Beijing</li>
</ul>
<img src="/images/2015/02/20/ZHA_Wangjing-Soho_04.jpg" alt="">
Source: Zaha Hadid Architects
The three-tower Wangjin SOHO complex was designed by architectural superstar Zaha Hadid. Hadid's signature curved forms are on display, though this project was slightly less controversially curvaceous than Al Wakrah Stadium, despite allegations that the project's designs have been plagiarised.
Height: 200 metres
<ul>
<li>The Wharf Times Square 1, Wuxi</li>
</ul>
<img src="/images/2015/02/20/wharf%20times%20square.jpg" alt="">
Source: 苏宁广场
China's tallest skyscraper contribution of 2014 – and the third tallest skyscraper to be built last year – is the Wharf Times Square 1. Designed by Aeda, the mixed use building holds a hotel and office spaces over its 68 floors.
Height: 339 metres
<ul>
<li>Wuxi Suning Plaza 1, Wuxi</li>
</ul>
<img src="/images/2015/02/20/wuxing%20suning%20plaza1.jpg" alt="">
Source: RTKL
Wuxi has also laid claim to the fourth tallest tower built last year, the Wuxi Suning Plaza 1. The 328 metre tall building has an angular top and is designed for mixed use. It was developed by Suning Real Estate Group, and designed by RTKL.
Height: 328 metres
<ul>
<li>Soochow International Plaza Towers, Huzhow</li>
</ul>
<img src="/images/2015/02/20/international%20plaza.jpg" alt="">
Source: Dadongwu Group
The two (East and West) Soochow International Plaza towers come in at 288 metres. The dual tower complex is perfectly symmetrical, with matching zig-zags on the façade of each tower. Dadongwu Group developed the project.
Height: 228 metres
<ul>
<li>R&amp;F Yingkai Square, Guangzhou</li>
</ul>
<img src="/images/2015/02/20/rf%20yingkai.jpg" alt="">
Source: 探长
The wiggly R&amp;F Yingkai Square might look like a behemoth in any other city. But among Guangzhou's towers, it blends right in. Formerly known as the Park Hyatt Guangzhou Mixed Use Tower, R&amp;F Yinkai Square was designed by Goettsch Partners. It's the 13th tallest building to be constructed in 2014.
Height: 296 metres
<ul>
<li>Fortune Financial Centre, Beijing</li>
</ul>
<img src="/images/2015/02/20/fortune%20financial.jpg" alt="">
Source: Servcorp
Beijing's Fortune Financial Centre comes in at 267 metres, making it this 20th tallest building constructed in 2014. The offices of major companies, including Intel, Toshiba, Dell and Ford, as well as Australian company Servcorp, are the primary occupants of the tower.
Height: 267 metres
<ul>
<li>Heung Kong Tower, Shenzen</li>
</ul>
<img src="/images/2015/02/20/heungkong.jpg" alt="">
Source: 1788111 via skycrapercity.com
The Heung Kong Tower is one of many "supertalls" in Shenzen, but stands apart in its neighbourhood, and is reportedly the tallest in the area. It was designed by the Beijing Institute of Architectural Design, according to CBTUH, and is also known as the Shenzen ChangCheng Center. It was the ninth tallest tower
Height: 303 metres
<ul>
<li>Wuxi Maoye City – Marriott Hotel, Wuxi</li>
</ul>
<img src="/images/2015/02/20/wuxi%20mayoe%20city.jpg" alt="">
Source: abjest
Yet another Wuxi supertall, this tower was the eighth tallest to be built last year, began construction in 2008 and the 88th tallest in the world (for now).
</body></html>

jrichardson-uRX5hFdKfN

Eight towering Chinese skyscrapers that highlight sky high aspirations

<html><body>
Chinese New Year falls later than usual this year, so the journeys of Asian residents coming to Australia to visit family and friends have only just begun for the year.
No doubt property purchasing will ensue - and with the dollar hovering at around 78 US cents, why wouldn’t it?
Our contrarian commentators, Jonathan Chancellor and Margie Blok, agree that the well established patterns of the Chinese buying property in Australia will continue during 2015, while noting that a buyer from China topped the 2014 residential sale prices in Sydney with the $39 million sale of Point Piper’s Villa Del Mare by Golden Fast Foods Pty Ltd.
The Golden Fast Foods Pty Ltd paper trail <a href="/news/guangzhou-evergrandes-chinese-billionaire-owner-xu-jiayin-tipped-as-villa-del-mare-point-piper-buyer">led to the Chinese billionaire, </a><a href="/news/guangzhou-evergrandes-chinese-billionaire-owner-xu-jiayin-tipped-as-villa-del-mare-point-piper-buyer">Xu Jiayin</a>, chairman of Evergrande, an integrated corporation specialised in residential building, cultural tourism, FMCG, agriculture, dairy, livestock farming and sport industry with 460 billion yuan worth of total assets and 80 thousand employees. Sky tracking websites showed that Xu Jaiyin, aged 56, was in Australia around the time of the early October 2014 sale, having arrived with a team of 25 in his private Airbus A319.
It was the second year running a buyer from China purchased the top-priced Sydney property. In 2013 Point Piper’s Altona topped the Sydney house price sale list following its $52 million sale to the Huang family through Alison Coopes.  
While our commentators concur on the continuing trend of Chinese buying Australian real estate, they disagree on the animal name of the 2105 Chinese lunar year beginning on 19 February.
HE SAID:<img src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="130" height="195" style="float: right;">
It’s year of the sheep (which is what Qantas is calling it). Enough said.
<img src="/images/2015/02/18/qantas-feb-18-one.png" alt="">
<img src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="130" height="195" style="float: left;">SHE SAID:
It’s year of the goat. The airline Cathay Pacific sent an email referring to the year of the goat – and they should know.
<img src="/images/2015/02/18/goat%20feb%2018%20one.jpg" alt="">
Many China websites, <a href="https://www.timeoutshanghai.com/feature/1011/Chinese-New-Year-in-Shanghai-2015" target="_blank">including Time Out Shanghai</a>, also refer to the 2015 Spring Festival holiday for Chinese New Year of the Goat.
No doubt Jonathan, the billionaire spotter, envisages a high-faluting merino with ultra fine wool – perhaps of Haddon Rig pedigree. Sometimes he really gets my goat, but on this occasion I won’t let him.
 
</body></html>

po-LsXgBTHBmX

Year of the Goat/Sheep: He Said/She Said

<html><body>
One in every three wealthy Chinese has property overseas, most of them residential properties, according to the luxury publishing and events group Huran Report.
As the domestic Chinese property market continues to slump, more and more wealthy Chinese investors have shifted their focus to overseas property markets.
Chinese investors invested over US$5.4 billion (A$6.91 billion) in overseas properties in the first half of 2014, and despite tension between China and Japan, Chinese investors flocked to Japan.
Australia as a destination ranked ninth.
<img src="/images/2014/07/04/yellow-ten.jpg" alt="">Canada
<img src="/images/2014/07/04/yellow-nine.jpg" alt="">Australia
<img src="/images/2014/07/04/yellow-eight.jpg" alt="">Britain
<img src="/images/2014/07/04/yellow-seven.jpg" alt="">Singapore
<img src="/images/2014/07/04/yellow-six.jpg" alt="">Malaysia.
<img src="/images/2014/07/04/yellow-five.jpg" alt="">Cyprus
<img src="/images/2014/07/04/yellow-four.jpg" alt="">New Zealand
<img src="/images/2014/07/04/yellow-three.jpg" alt="">US
<img src="/images/2014/07/04/yellow-two.jpg" alt="">South Korea
<img src="/images/2014/07/04/yellow-one.jpg" alt="">Japan
Source: Huran Report.
According to <a href="https://www.hurun.net/en/Default.aspx" target="_blank">Huran Report</a>, Japan became the top investment destination for Chinese property investment in 2014 mostly because of the depreciation of the Japanese Yen and a decade of deflation that squeezed the bubble out of the property market in Japan, the asiaone.com website noted.
</body></html>

The top 10 countries where the Chinese spend their money on property

<html><body>
<div class="page" title="Page 10">
<div class="layoutArea">
<div class="column">
Following the global financial crisis, the world economy was regaining momentum after the sharpest downturn in activity since 1929, attendees at the World Economic Forum have been told.
Both 1929 and 2008 were financial landmarks, but they were not unique, a report to the World Economic Forum at Davos prerepared by the Steering and Advisory Committees of the Emerging Horizons in Real Estate – Asset Price Dynamics Initiative noted. 
"Episodes of extreme volatility in financial and physical asset markets are a recurring feature of modern market economies; neither the frequency nor the amplitude of market cycles seems to be diminishing.
"Real estate markets participate prominently in many of these cycles. 
"Moreover, as cross-border capital flows grow, real estate markets are becoming more globalized, and the potential for disruptive market cycles involving real estate may be increasing," said the report co-authored by Dr David Rees, JLL research director.
Speaking in Davos, Switzerland, Colin Dyer, the chief executive of JLL, also said that, globally, total direct real estate investment was expected to have reached $US700 billion in 2014, matching the pre-recession levels of 2006.
It is also projected to increase a further 5-10% in 2015, driven by the robust economic environment.
</div>
</div>
</div>
"Multi-family assets have been a focus of investor activity in the US and interest in these properties has spread to countries such as the UK and Australia. Additionally, Chinese residential developers have expanded aggressively into overseas markets in recent years, with a focus on London, New York, San Francisco, Toronto and Sydney," <a href="https://www.propertyobserver.com.au/https://twitter.com/jllnews/status/556572078317785089" target="_blank">he said</a>.
The annual World Economic Forum meeting in Davos, Switzerland attracts more than 2,800 business, government and civic leaders from nearly 100 countries. This year's conference, themed "The New Global Context," will examine how the global economy will adapt to the massive technological, social and political transformations shaping the world today.
 
</body></html>

Chinese are aggressively buying in Sydney: JLL tells Davos

<html><body>
GUEST OBSERVATION
One of the more noteworthy features of Xi Jinping’s presidency has been his apparently genuine and effective efforts to crack down on corruption. Like everything else in China, the scale of the problem is epic. But the number of “tigers” that have been caught in the net and the fact that prominent diplomats are now being ensnared suggests that efforts to combat graft are both serious and having the desired effect.
At one level, it’s not hard to see why China’s leaders want to be seen as “doing something” about corruption. If there is one topic that outrages many ordinary Chinese and threatens to send social media into meltdown, it is the idea that corrupt officials enrich themselves and go unpunished. More than 80% of people in China think that the rich get richer while the poor get poorer, according to a recent Pew survey.
This might be an uncomfortable public policy problem for any government. It is especially acute in the People’s Republic at a time when Xi appears to be trying to revive some of the key principles of Chinese-style socialism. China’s leaders are, after all, supposed to be representatives of the masses, not the executive committee of the bourgeoisie. That so many prominent political figures and their families have accumulated extraordinary wealth is not a good look for the vanguard of the people.
Disgraced former provincial governor Bo Xilai was the first of a string of high-profile leaders who have been brought down in the ongoing purge. The downfall of former security czar Zhou Yongkang was, perhaps, an even more remarkable scalp, given his former membership of the Politburo Standing Committee – China’s highest governing body.
The fact that Bo and Zhou were seen as allies and potential political opponents of Xi’s has led some to question whether the current campaign is more about Xi consolidating his remarkable personal power than it is about corruption per se. After all, corruption has become an entrenched part of doing business in China, with around 20% of firms reporting that they expected to give “gifts” to public officials to obtain things like import licenses and construction permits.
It is no surprise that China was rated as 80th out of 178 countries in Transparency International’s 2013 corruption perceptions index as a consequence. The big – generally neglected – question is whether it actually matters if “China” is judged to be corrupt. Plainly it has not stopped the “international investment community” from continuing to pouring money into China, despite the apparent difficulties of doing business there and the need to subscribe to local norms.
It is also clear that pervasive corruption has been no obstacle to growth. This is especially important given that the reason we all pay such keen attention to China is because it has been an historically unprecedented economic development success story. It is also a story with profound importance for dependent trade partners like Australia.
China’s experience with corruption is not unique either. One of the most striking features of Japan’s development – the previous holder of Asia’s developmental crown, let’s not forget – was that it was not inhibited by corruption or “money politics”. The corruption scandals that eventually engulfed former Japanese prime minister Tanaka Kakuei did little to hold back Japan’s economic renaissance.
A not dissimilar story can be told about Indonesia under Suharto. For all the Suharto family’s rampant corruption, economic development did take place. Cynics say that the one benefit of Suharto’s rule was that everyone knew who to bribe. Following a process of decentralisation urged by the international financial institutions, things are a good deal less clear-cut.
There is a serious point in all of this, but one that is normatively unpalatable. If we think of corruption as an informal type of taxation it becomes more understandable, if not more acceptable. In countries where the taxation system is ineffective and where wages may be low, the growth of corruption is predictable and difficult to eradicate.
What is more surprising is the persistence – even the growth – of corruption as living standards rise. It is not something that is exclusively a problem in Asia or the “developing world” either. On the contrary, recent revelations of the extent of corruption in New South Wales, not to mention Wall Street and the City of London, are a sobering reminder of the pervasive nature of corrupt practices.
China’s attempts to wrestle with this problem are, therefore, of particular interest and importance. It remains to be seen whether Xi will have any more success in rooting out powerful, corrupt vested interests than we have in this country. Likewise, it will be interesting to see what impact – if any – success or failure in this endeavour has on China’s development trajectory.
Ultimately, corruption may have more impact on the possible development of a collectively held sense of justice and equity than it does on economic growth. Still a good reason to do something about it, of course.
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>.
</body></html>

Corruption in China: does it matter?

<html><body>
GUEST OBSERVATION
"<a href="https://www.newcriterion.com/articles.cfm/Herb-Stein-s-law-7531" target="_blank">If something can’t go on for ever, it won’t.</a> – Herb Stein, chief economic adviser to former US president Richard Nixon.
China’s economic rise has been a good news story for Australia. According to most economic policymakers and commentators, the growing middle classes of China and the rest of Asia will ensure Australia continues to flourish over coming decades.
Treasurer Joe Hockey, for example, recently <a href="https://jbh.ministers.treasury.gov.au/speech/024-2014/" target="_blank">argued</a>: "China’s middle class of around 150 million people is expected to reach one billion in just 16 years … This rising middle class of Asia wants what comes from Australia’s farms and our gas fields. They want to come here as tourists, attend our universities and they need our financial sector to manage their wealth and plan their retirement."
Reserve Bank economist Alexandra Heath also <a href="https://www.rba.gov.au/speeches/2014/sp-so-211114" target="_blank">contends</a>: "Even if the sustainable growth trajectory for the Chinese economy gradually declines over the medium term, the economy is much larger than it was and is still growing. This implies there will continue to be a huge appetite for commodities of many kinds."
They could be right, and if you judged future opportunities based on past performance you’d be reasonably confident. But what if they’re wrong? Is Australia prepared if the optimistic scenario doesn’t eventuate? Do we need a plan B?
Australia is now the most China-dependent economy in the world. Australian exports to China have grown from <a href="https://www.treasury.gov.au/PublicationsAndMedia/Speeches/2014/CEDA-27112014" target="_blank">8.5% of the total in 2003-04</a> to <a href="https://dfat.gov.au/publications/tgs/index" target="_blank">32.5% in 2013-14</a> – and they continue to grow.
Australia’s dependence on its top three export destinations has also increased over the past ten years. The top three accounted for 33.7% (Japan 15.7%, US 9.5% and China 8.5%) in 2003-04, rising to 55.1% (China 32.5%, Japan 15.8% and South Korea 6.8%) by 2013-14. The top five now account for 63.7%, up from 47.7%.
More worryingly, not only is Australia more China-dependent, but so is most of the rest of Asia. This means that a China slowdown (or worse) will also hit Australia’s exports to Japan and South Korea – our second and third-largest export destinations.
Let us hope that the dreamers are right about China’s long-term progress and that the doomsayers are wrong. But remember also that all of this export growth to China occurred without the free trade agreement that Australia and China have <a href="https://www.pm.gov.au/media/2014-11-17/landmark-china-australia-free-trade-agreement" target="_blank">concluded negotiating</a>. It’s possible that the agreement will help to diversify Australia’s export mix to China – <a href="https://www.smh.com.au/business/the-economy/who-wins-in-australiachina-free-trade-agreement-20141117-11ojvd" target="_blank">more agriculture, more services</a> – but it might also just make us more vulnerable down the track as Australia becomes even more dependent on China for earning foreign exchange.
Current policy settings aim to reinforce Australia’s strengths. While this has worked well for us over recent years, Australia’s long-standing economic vulnerabilities remain. These include our vulnerability to falls in the demand for – and prices of – <a href="https://www.theaustralian.com.au/business/news/iron-ore-price-resumes-downwards-trend/story-e6frg906-1227142842905" target="_blank">resources</a>, and high levels of <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1415/Quick_Guides/AustForeignDebt" target="_blank">foreign</a> and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-05-07/household-debt-the-big-threat-to-australian-economy/5435844" target="_blank">household</a> debt.
This leads us to the big question: does Australia need a Plan B? And what would that be? A Plan B would involve a realisation that while resources have helped to make Australia rich, they’re not enough to sustain our prosperity over time. Australia needs active policy efforts to diversify the economy away from a reliance on resources and on buying and selling houses.
Policymakers need to reconsider industry policies and think of ways to develop new industries rather than just support old ones in ad hoc ways. Efforts to extract greater rents from Australia’s <a href="https://www.miningaustralia.com.au/news/foreign-ownership-dominates-mining-industry-rba">80% foreign-owned</a> mining sector are also necessary – that is, through mining taxes. Encouraging the development of renewable technologies through a carbon price should also be a no-brainer for Australia.
In other words, the two policies that the Abbott government <a href="https://www.news.com.au/national/budget-what-did-the-abbott-government-achieve/story-fncynjr2-1227144981800">trumpets as successes</a> are anything but.
The continuing transformation of the Australian political economy is likely to cause ongoing political volatility as Australian governments deal with the electoral consequences of structural changes and economic vulnerabilities.
The best way to ease the pain and avoid resistance to necessary structural reforms is to ensure a fairer distribution of Australian prosperity and a fairer distribution of the pain when the current period of economic growth ends. There are no guarantees of political success, but a fairer political economy is likely to underpin support for economic openness and flexibility. Both are vital preconditions for a more productive economy.
Improvements in productivity – the efficiency of labour and capital – and an egalitarian distribution of the fruits of that productivity are what matters for long-term prosperity. Getting Australia’s policymakers and the wider population to realise that the two are not contradictory is the short-term challenge.
Both good and bad things can come from political processes but we cannot remove politics from the equation. It is worth remembering that Australia is a <a href="https://theconversation.com/income-and-wealth-inequality-how-is-australia-faring-23483">wealthy and relatively equal country</a> because of political interventions, not despite them. Australia needs to utilise its luck to lessen its vulnerabilities.
If policymakers simply believe that China will sustain Australia’s prosperity over the next 20 years, then many Australians will think there’s no reason to change tack – until it’s too late.
Tom Conley is senior lecturer, School of Government and International Relations at Griffith University.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
</body></html>

Australia’s China dependence: Do we need a Plan B?

<html><body>
GUEST OBSERVATION
Pop quiz: in 2014 the quantity of Australian iron ore demanded by China has: a) fallen sharply, b) fallen modestly, c) remained the same, d) increased modestly, e) increased sharply?
The answer in just a moment.
Last week the Australian Bureau of Statistics (ABS) told us that the economy is suffering from an <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyReleaseDate/52AFA5FD696482CACA25768D0021E2C7?OpenDocument" target="_blank">income recession</a>. Our exports aren’t fetching the prices they used to – the terms of trade are down by around 9% for the year - and that means we can’t afford to buy as much from overseas as before.
Growth in China has also <a href="https://www.afr.com/p/world/china_growth_slows_from_rail_to_GPWU3X58iAOG5SvvMgNi9L" target="_blank">slowed</a> and the construction industry there is in the middle of a major funk. Moreover, China’s economy is rebalancing away from growth led by resources-hungry investment.
<a href="https://www.smh.com.au/world/chinas-slump-will-hurt-australian-incomes-and-the-pain-is-likely-to-linger-20141205-11zy1z" target="_blank">Joining the dots</a> is proving irresistible. But there’s a problem with this story, and it’s a big one.
The answer to the above question is unambiguously option e. In the September quarter – that’s the same quarter Australia shifted into an income recession - exports of iron ore to China were <a href="https://www.bree.gov.au/files/files//publications/crq/westpacbree-crq-201411.pdf" target="_blank">up 33% from a year earlier</a>, according to Westpac and the Bureau of Energy and Resources Economics (BREE). This followed a 32% jump the first quarter and a 36% leap in the second.
These are extraordinary numbers and we should not be at all surprised when they start to slow. But, for now, Chinese demand continues unabated.
In a sense this is not difficult to understand. The law of demand says that when the price falls, the quantity demanded will increase. The price of iron ore is down nearly 50% since the beginning of the year.
And while growth in China is now 7.3%, the slowest pace in five years, that’s coming off an ever-larger base. In terms of the number of dollars being added to the economy each year, 7.3% growth now is more than a match for 8% a couple years ago.
Watch the miners
If the price has fallen and the quantity traded has increased, there can be only one culprit – a dramatic increase in supply. And so there has been: BHP Billiton alone is in the midst of a 65 million tonne per annum <a href="https://www.bhpbilliton.com/home/investors/reports/Documents/2014/141006_IronOreBriefingandWesternAustraliaIronOreSiteTour.pdf" target="_blank">expansion</a> of its Western Australian iron ore operations.
Treasurer Joe Hockey may be worried about falling iron ore prices but BHP Billiton certainly isn’t. Even with iron ore prices sitting as they are between A$70 and $80 per tonne, the business remains hugely profitable. Its current cost of supply is around A$27 per tonne and the target is less than $20 in the medium term. Producers in other sectors of the economy would kill for those sorts of margins.
While it’s become popular to dismiss the projections for Chinese demand from the miners themselves as being overly optimistic – why exactly is not clear. Remember, it’s their billions of investment dollars on the line - and <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2014/Long%20run%20forecasts%20of%20Australias%20terms%20of%20trade/Documents/PDF/long_run_tot.ashx" target="_blank">forecasts</a> offered by the Commonwealth Treasury in May based on an analysis of demand and supply fundamentals are proving remarkably accurate. In reference to iron ore they concluded that “… supply will increase at a much faster rate than demand…” and that “The shift of production to the flatter section of the supply curve is expected to cause a rapid fall in the real price…”
These dynamics will play out until 2017-2018. From then on, the price will stabilise at a touch above $70 per tonne. There’s little to worry about here.
The bottom line in all of this is that the impact of China on the Australian economy remains a tremendously good news story. According to the latest <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5368.0">trade data</a> from the ABS, the value of our exports to China is more than double that to our second-largest customer, Japan. This ratio holds true across the board - agriculture, fuels and minerals, services and even manufactured goods.
None of this is expected to change any time soon. China is the world’s second-largest economy and the International Monetary Fund continues to <a href="https://www.imf.org/external/pubs/ft/weo/2014/02/">forecast</a> that it will grow by 7.4% this year and 7.1% next year. That growth in 2015 is more than double that predicted for the US and nearly nine times that for Japan. There’s always room to quibble about the exact numbers but few would disagree that China will continue to outperform other major economies.
For the Australian economy it doesn’t get much better than that.<img src="https://counter.theconversation.edu.au/content/35243/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
James Laurenceson is deputy director and professor, Australia-China Relations Institute (ACRI) at University of Technology, Sydney.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
</body></html>

China-Australia doomsayers overlook strong fundamentals

<html><body>
GUEST OBSERVATION
How does one come to understand China? Many wish to do so, especially in light of China’s growing global influence.
For some, language is the key that opens the door. With Chinese language, one is able to enter a people and their culture, opening up communication, literature, philosophy, belief and much more. Engaging and studying in translation always presents a barrier to understanding, but language is not enough.
For others, the Chinese classics provide the way to understand the place. You may focus on the traditional <a href="https://www.princeton.edu/~achaney/tmve/wiki100k/docs/Chinese_classic_texts" target="_blank">“four books and five classics”</a> (四书五经), from before the unification under the Qin dynasty (221 BCE), or on the many texts gathered until the end of the last dynasty, the Qing, in 1912. Again, there is merit in this approach, especially in light of the way the classics are restudied and reinterpreted at every important turn in Chinese history – as is the case now.
For others, <a href="https://www.britannica.com/EBchecked/topic/132184/Confucius" target="_blank">Confucius</a> provides the way into China, if not each country deeply influenced by Confucianism. The “four books and five classics” are themselves from this tradition. Once again, such study is important, but does not provide the key to modern China.
Yet more possibilities are proposed, whether <a href="https://www.britannica.com/EBchecked/topic/582972/Daoism" target="_blank">Daoism</a>, or some mystical notion of the “East”, or kinship, or the metaphysics of <a href="https://www.britannica.com/EBchecked/topic/653297/yinyang" target="_blank">yin-yang</a> (阴-阳), which found its way into nearly every tradition or school of Chinese thought.
On a different note, some eschew language, culture, philosophy or belief and focus on economics. In this case, the <a href="https://en.wikipedia.org/wiki/Four_Asian_Tigers" target="_blank">“Asian Tigers”</a> – Hong Kong, Singapore, Taiwan and South Korea – provide the template for China. Here, export-focused economies, industrialisation and state intervention led to rapid growth, high incomes and now economic specialisation.
Or perhaps Japan provides the model, with its rise to economic pre-eminence under American patronage. This is perhaps the least persuasive option.
Socialism still makes China tick
The missing element in all this is Marxism. China remains a socialist country, with the Communist Party effectively operating a one-party state with <a href="https://www.reuters.com/article/2014/08/30/us-china-media-idUSKBN0GU05I20140830" target="_blank">Marxist values</a>.
Many continue to dismiss Marxism in China, whether in terms of a repressive and inadequate ideology or as empty words in which no one “believes” any longer. This is a great mistake and risks neglecting what is arguably one of the most important factors for understanding China.
Mao Zedong is the point at which one should begin, although it helps to understand Marx, Engels and Lenin, let alone the history of successful socialist revolutions from Russia onwards. Mao’s thought remains the focus of intense study and debate in China – so much so that President Xi Jinping frequently <a href="https://articles.economictimes.indiatimes.com/2013-06-30/news/40286860_1_president-xi-jinping-gdp-numbers-cpc" target="_blank">quotes Mao</a> in national and international contexts.
Xi has a PhD in Marxism and has directed even more resources to the study and <a href="https://marxistupdate.blogspot.com.au/2011/05/marxist-education-in-china" target="_blank">fostering of the Marxist tradition</a> and the work of Mao Zedong. Marxism is now a distinct discipline in China.
Mao’s legacy is not dead and buried
More controversially, Mao’s acts as a leader are also vital for understanding China. Most debate turns around the role of the <a href="https://www.history.com/topics/cultural-revolution" target="_blank">Cultural Revolution</a> (1966-1976), which he fostered over the last decade of his life. Was it an aberration, an outburst of revolutionary enthusiasm, or perhaps an effort to restore his sliding power?
The semi-official narrative is that the Cultural Revolution set China back in terms of economics, politics and society. The aberration was thus corrected after Mao’s death, when the path of reform was undertaken.
However, another and persuasive argument, made by <a href="https://www.amazon.com/The-Battle-Chinas-Past-Revolution/dp/074532780X" target="_blank">Mobo Gao</a>, is that it was precisely the Cultural Revolution that set China on its current path. Thoroughly shaking up vested interests in society, from top to bottom, it cleared the ground for China’s rapid rise to becoming the leading global power. This was the shake-up needed to unsettle centuries, if not millennia, of social assumptions and cultural norms.
Against the orthodoxy that the economy came to a standstill during the Cultural Revolution, it has become clear that the economy actually forged ahead as though released from its shackles.
Unfortunately, I have yet to find a “mainstream” foreign commentator who is even partly aware of the nature of Chinese Marxism. Obviously it entails careful study and a feel for the subject matter. It requires some sense of the meaning of <a href="https://www.propertyobserver.com.au/https://english.people.com.cn/90002/92169/92211/6275043" target="_blank">“socialism with Chinese characteristics”</a> in all its complexity and apparent paradoxes. And it needs to be understood that in China a “Marxist entrepreneur” is not a contradiction in terms.
Languages, the classics, Confucius: these and more are obviously important for understanding China. But to rely on these is to neglect the crucial factor of Marxism. Many may aspire to becoming a <a href="https://en.wikipedia.org/wiki/China_Hands" target="_blank">Zhongguotong</a> (中国通) – one who understands and senses at a much deeper level how China ticks.
Without Marxism, such an aspiration is mere pretence.
Roland Boer is associate professor, religion, Marxism and secularism, faculty of education and arts at <a href="https://www.newcastle.edu.au/" target="_blank">University of Newcastle</a>.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
</body></html>

China

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

China

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News