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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

China

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Sydney’s investors are still keen to buy apartments, just not necessarily in Sydney, Nerida Conisbee, chief economist at realestate.com.au suggests.
Her recent analysis on the most searched-for new apartment locations by Sydney property seekers showed that inner-Sydney Alexandria was the most searched location.
The No 2 ­location was the Melbourne CBD.
With the exception of Alexandria, the Victorian capital is far more popular among Sydney buyers than any other Sydney suburb.
After Alexandria and the Melbourne CBD, the most searched-for suburbs for new apartments by Sydney-based property seekers were inner-city Waterloo, Parramatta in the west, and the middle-ring northern suburb of Macquarie Park, all in Sydney.
"The simple fact is, prices for apartments in Sydney are far higher than in Melbourne or ­Brisbane," Conisbee noted.
The median for apartments in Sydney is now $735,000 compared with Melbourne at $550,000 and Brisbane at $398,000.
"The majority of investors and first-home buyers tend to be very price sensitive, so much so that it’s very difficult for us to tell the difference between the two groups on the website when ­analysing their behaviour.
"A price ­differential of more than $150,000 can make a big difference as to whether a first homebuyer or ­investor can afford to buy or not.
"The other group that contributes significantly to demand for apartments in Australia is offshore buyers.
"Our monthly analysis of Chinese-buyer demand continues to show increases in property seekers from China ­looking to Melbourne and Brisbane.
"At the same time, demand for Sydney apartments among this group has dropped by 10 per cent over the past 12 months," she said adding offshore buyers are more likely driven by overseas students looking at alternatives to Sydney as a preferred place to study in Australia with the list of searched suburbs dominated by those close to universities.
In Melbourne, inner-city Carlton makes the list, while in Brisbane, St Lucia, the home of the University of Queensland features heavily.
The only Sydney location to rank is Westmead, in the city’s west, home of the Westmead Clinical school, a favourite among Indian property seekers.
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j.ballantyne1990-6AQqhLzZaK

Sydney investors and Chinese buyers look to Melbourne for cheaper apartments: REA's Nerida Conisbee 

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Guest Observer 
The past two months have seen a rapid slowing in house price growth in tier 1 cities. 
For new housing, annual price growth in tier 1 has now slowed to 1%yr at September, from 8%yr two months ago and its peak of 31%yr in April 2016. 
Whereas it was initially Shenzhen that led the tier 1 aggregate down, now the weakness has a broad base. In addition to the 4%yr fall seen in Shenzhen, prices are also flat in Shanghai and Beijing. Guangzhou continues to experience robust annual gains, 9%yr in September. But that is half the growth pace of three months earlier, signalling a marked shift in momentum there as well. 
While the deterioration in momentum has been most obvious in the tier 1 cities, where authorities’ actions have been focused, annual price gains are also decelerating in tier 2 and tier 3. 
Of the 70 cities that report across tier 1 to 3, seventeen experienced monthly price declines in September. That compares to just six three months ago.
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In tier 2, annual price growth has now fallen below 6%, from 9% three months ago and a peak near 12% in October 2016. Only one of the tier 2 cities has experienced price declines over the past year (Chengdu, –2.8%yr). 
Similarly in tier 3, price growth has slowed to 7%yr after remaining near 9% between November 2016 and August 2017. None of the tier 3 cities are yet to see price declines versus a year ago, despite the increase in monthly losses. 
Price action in the established market continues to map to the new home market. Prices are up 4%yr in tier 1 and 6% in tier 2/3. In September, thirteen cities reported price declines for established homes, up from just two in March. 
It is evident from the activity data that real estate investment will slow materially in 2017/18. Growth in project starts has followed sales growth down to near zero. And the increase in floor space under construction is negligible versus history. Still, contrasting the construction activity trend to the rate of gain of land prices highlights that developers remain optimistic over the longer-term, shoring up their pipeline of land while limiting current new dwelling supply. 
 
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jrobinson-rf4aSBido9

China sees rapid slowdown over last two months: Westpac's October property update

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Chinese developer Wanda have begun marketing the apartments in their luxury One Circular Quay development.
They are marketing the Sydney building as Australia's most prestigious residential development (below).
The flagship $1 billion project was officially launched at the Museum of Contemporary Art in April.
There are $60 million expectations for the luxury penthouses.
The 57 storey tower will comprise 184 apartments and a 179 room hotel.
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Wanda are also developing Jewel resort, a $1 billion Gold Coast project.
There were suggestions in August the group were in discussion to sell the two projects worth nearly $2 billion after it was announced they faced a lending freeze ring from Chinese Government controls.
They quickly dispelled the rumours and said the projects were on track, calling media reports "incorrect."
“Having made such enquiry internally as is reasonable in the circumstances, the company wishes to clarify that, as of the date of this announcement, the company does not have any plan to make the said disposals referred to in the media reports, and thus such information is incorrect. Both projects are progressing as planned,” Wanda said in a regulatory announcement
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However shortly after the market was advised there was an internal ownership realignment.
The apartments are expected to be multi-million-dollar offerings from 50 sqm studios to four penthouses of 600 sqm.
CBRE are asking potential buyers to book private appointments to inspect the display suite.
Wanda claim the development was in an “absolutely unbeatable position” to set a new benchmark for location, quality and price.
The development on the 4,000 sqm site of Gold Fields House, purchased by the conglomerate in 2015 for $415 million, will also include a five-star hotel expected to be operated under the Wanda Vista brand.
The development has a 2020 completion date.
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Troubled Chinese developer Wanda moves to sell off the plan apartments in One Circular Quay

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Leading fund manager Platinum Asset Management’s CEO is betting big on China, in spite of recent warnings from credit rating agencies.
Kerr Neilson, the chief executive and founder of Platinum Asset Management, has four times more money invested in China than the United States as he thinks country’s debt problems would impact the economy but not “stop it dead".
Platinum has invested more than a quarter of its $23.9 billion funds under management into China-related stocks.
"China is very much like the '60s and '70s in America when it had a can-do attitude and there was a lot of money going into investments and they led the world in many industries," Neilson was quoted by The Australian Financial Review as saying.
He has ignored recent downgrades from credit rating agencies and warnings about the growing risk of a banking crisis.
The veteran fund manager's bet on China helped his flagship Platinum International Share fund return 18 per cent net of fees over the past year, compared with 11 per cent for the index.
Since its inception 22 years ago, the fund has returned 12.8 per cent annually, around double the benchmark.
Neilson explained his rationale for investing heavily in China, citing the stable macro-economic outlook, a more profitable industrial sector and an unreliable stockmarket, which often leads to companies being mispriced.
"The locals, who account for 70 per cent of the volumes, tend to be much attracted to shiny new things," he said. "They will pay huge prices for what we regard as transient growth or overpay for the growth they are buying.
“We have been bewildered by the number of quite wonderful companies which we can buy quite cheaply," he added.
Platinum is focussing on companies in more traditional sectors with cheaper offerings and reduced its exposure to internet giants such as Alibaba, Tencent and Baidu
Neilson believes there is more value to invest in companies such as gas distributor ENN, which Platinum expects will grow at more than 15 per cent over the next few years as China moves towards cleaner energy.
It has also bought into Hong Kong-listed Anta Sports, which has doubled in price over the past 18 months.
Despite the rally, Neilson said it was "not an expensive stock given its exposure to the rising spending power of the Chinese consumer".
Platinum has about $6.5 billion invested in Chinese companies, either listed on the mainland, in Hong Kong or on markets around the world such as New York, compared with $1.5 billion in US stocks.
Platinum's strategy goes against conventional stock market wisdom. The US market has a 54 per cent weighting in the MSCI, the benchmark global index, to just around 6 per cent for greater China markets.
"In terms of its economic significance, that's pitiful," he said.
Neilson justified his choice saying China makes twice as many automobiles as the US and eight times as much steel and also leads the world in science, technology, engineering and mathematics graduates, with 4.7 million last year. That compared to 2.6 million for India and just over half a million each for the US and Russia.
He is also confident in the country's macro-economic outlook, a confidence that many others don't share.
In September, Standard &amp; Poor's followed the two other major ratings agencies in downgrading China's sovereign debt, citing a sustained period of credit growth, which had increased "financial and economic risks" on the mainland.
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prateek24-ezbwHMbNAk

Kerr Neilson, Platinum Asset Management boss bets on China for financial returns

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There has been an increase of almost ten-fold in the volume of Chinese ownership of Australian agricultural land which shows China has climbed to second on the list of top 10 countries with the UK again in top position.
China’s volume of agricultural land in Australia now sits at 14.4 million hectares, according to the second report by the Commissioner of Taxation on the operations of the Foreign Ownership of Agricultural Land Register which was released recently by the Federal Treasurer Scott Morrison.
Of the 13.6 percent of all Australian agricultural land held by foreign investors, the UK owns about 27 percent and Chinese investors now own about 25 percent. 
The total area of agricultural land in Australia with a level of foreign ownership has fallen slightly from 52.1 million hectares at 30 June 2016 to 50.5 million hectares at 30 June 2017.
The proportion of agricultural land with a level of foreign ownership (foreign held) has fallen from 14.1 per cent (adjusted) at 30 June 2016 to 13.6 per cent at 30 June 2017.
<a href="https://nnimgt-a.akamaihd.net/transform/v1/crop/frm/DQPpmhQKY4q83RFKYAWNAF/a5fd4129-e8aa-4057-8afd-0d4222c1bfbe.png/r0_0_1133_770_w1200_h678_fmax.jpg" target="_blank">Click to enlarge</a>  
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According to the report, foreign investors held 13.6 percent of all Australian agricultural land as at June 30 this year; down from an adjusted 14.1 percent on the same date last year.
Queensland had the highest volume of farmland involving foreign ownership interests with 16,386,000 hectares, comprising 5,482,000 hectares in freehold and 10,903,000 hectares leasehold.
Victoria had 665,000 hectares in total comprising 589,000 in freehold and 76,000 hectares in leasehold.
The Australian Taxation Office (ATO) administers the Agricultural Land Register and receives information directly from foreign investors who are required to register their interests under the new reporting regime.
Measurements of foreign interests in agricultural land according to farm-use was dominated by livestock production with 42,954,000 hectares followed by cropping 1,639,000 hectares, forestry 1,422,000 hectares and horticulture 296,000 hectares.
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Chinese agricultural land ownership in Australia set to exceed UK ownership

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Political tensions on the Korean peninsula will re-direct a larger share of the $9.2 billion Golden Week expenditure to Australia, according to iProsperity (iPG), an advisory firm for high networth investors.
Australia has seen a four-fold increase in the number of Golden Week tourists in the past decade, ABS data shows. 
Over the same period, Chinese tourists’ annual total expenditure has surged 700%, to $1.4billion. 
iPG director Gary Sue Fong says Golden Week in 2017 is expected to smash previous records, and predicts Australia’s hotel sector will be pushed to the brink over the eight-day holiday break.
“Currently, Australia’s hotel occupancy rates are ranked among the highest in the world, with the hotel occupancy rates averaging 78% across Australia throughout 2016. To keep up with ongoing demand, the domestic hotel sector needs to grow by a third to capitalise on the lucrative Chinese tourist market,” said Sue Fong.
“The majority of Chinese tourists cite safety and security as the number one consideration when selecting a Golden Week destination. We’re witnessing strong demand across the country’s major leisure destinations.” 
Chinese travel agency Ctrip forecasts a 70% fall in the number of Chinese tourists to South Korea during Golden Week this year, as rising tensions on the Korean peninsula deter China’s six million travellers from top destinations, South Korea and Japan.
Ctrip data reveals 80 per cent of people using its platform opt for four and five star services when travelling abroad.
As wealthy travellers from China look for luxury experiences in Australia, supply is struggling to keep up with demand across Australia, adds Sue Fong.
Hotels in Cairns and Port Douglas, in particular, lead in terms of revenue growth, while the second strongest market, Sydney, is expecting double-digit revenue growth this year.
In FY2017, there are currently 101,196 rooms across Australia’s major cities, with a 78.6% occupancy rate. This is forecast to grow by 33%, adding 33,303 new hotel rooms to the supply in Australia by 2025 to meet demand with a 81.6% occupancy rate, and 4.4% increase in RevPAR, $142.53 to $203.78.
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Chinese tourists swap Seoul for Sydney in Golden Week, expected to stretch hotels

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Sydney estate agents will be seeking out buyers who'll be here from China this week on potential fly'n'buy visits.
The National Day Golden Week is China's big holiday when 760 million Chinese workers are able to take a week off every October.
For China’s rich and wealthy, the Golden Week provides the perfect time to head overseas for holidays, shopping, university visits along with the pursuit of property.
The Chinese strongly believe in generational investments, and property is deemed a safe and lasting asset to pass down for generations, especially if it’s with freehold ownership rights like Australia.
Ctrip, the online travel portal, is predicting more than six million Chinese travellers to head overseas during the break which runs through to October 8.
Australia sits fifth most popular destination for these Chinese holidayers behind Thailand, Japan, the US and Singapore.
New air routes help our popularity, the property website Juwai suggested, combined with easier and cheaper visas for outbound Chinese travellers to achieve their travel dreams.
Chinese incomes have seen sustained growth in recent times with an estimated 135 million travellers through this year.
Sun, sea, sand, blue skies, stunning natural environment and wildlife – think whale-watching, swimming with dolphins, and hugging koalas – are some of the draw cards behind the steady growth in tourist arrivals.
The number of Chinese visitors to Australia has hit around 1.4 million annually, so although we only receive a very small percentage of all Chinese visitors, the numbers are sufficient to have more than a ripple effect on the property market.
Some October's more than others.
Golden Week 2015 saw a Maroubra home sold for $10.5 million to a Chinese couple, who flew in to seal the deal. There was a $39 million Point Piper sale in 2014.
Golden Week holidays are important but less than they were in the past, suggests Carrie Law, the CEO of Juwai.com.
High prices in China often make our cities a better value proposition. 
These Chinese buyers are faced with their own domestic restrictions limiting buyer’s opportunities, so many mainland property buyers will be looking overseas for investment opportunities, although there are restrictions on getting their money out too.
This didn't stop Chinese real estate investors spend a record $101 billion last year globally on both residential and commercial properties – up 845 percent over the past five years, and a 25 percent up on 2015.
The US is considered top spot by most property investors from China, which explains the $50 billion spent by Chinese buyers on American real estate.
Australia comes in at second, followed by Hong Kong, Canada, and the UK, Juwai recently noted. 
Face matters in China, in a society ever conscious of reputation and hierarchy. There is no better way to do that than buy a home to show off their wealth and investment acumen to family and friends, and owning international property gains even further prestige.
These potential Chinese buyers have been looking online for options ahead of their travels next week.
China’s next Golden Week opportunity is happening next February, which is during Chinese New Year celebrations for the year of the dog.
 
 
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Agents seeking out buyers for Chinese Golden Week 

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The Australian Securities Exchange has asked around 50 listed Chinese companies if they were facing problems in capital transfers into or out of China, following the trading suspension of one such company.
Chinese company Ding Sheng Xin Finance suspended trading on August 29, failing to meet its August 31 deadline to lodge its half-year results and did not give any reason as well.
While the market regulator did not identify the specific company involved or its issues, Ding Sheng Xin Finance’s trading suspension led the ASX to seek assurance on whether other Chinese companies had any in problem in funds transfers.
Ding Sheng Xin chairman Winton Willesee did not directly confirm the reason for the delayed accounts but told The Australian Financial Review "of late lots of companies are having that problem" of repatriating funds from China.
The ASX has asked each potentially affected company whether it "has any difficulties in repatriating money/converting Chinese RMB into foreign currencies".
It has also asked whether the company "is aware of any changes to laws in China that prohibit the repatriation of money/conversion of Chinese RMB into foreign currencies?"
The Chinese companies are operating in a variety of sectors, from finance, to resources, to agriculture and property.
The few companies to respond so far, such as developer Boyuan Holdings, have not reported issues with capital transfers.
"The company has had no difficulties repatriating money or converting money into foreign currencies," developer Boyuan Holdings said on Monday.
Boyuan was the first Chinese real estate company to list on the ASX and is an offshoot of the Hong Kong-listed Jiayuan and its seed asset is the Jiayuan Central Plaza Project in Jiaxing City in China.
An ASX spokesman was cited by the AFR as saying that the inquiry was a "precautionary step to help ensure the market is kept informed".
"By asking companies to clarify their position, ASX and investors can assess if the issue is isolated or widespread," an ASX spokesman said.
"Based on the responses released to the market thus far, it appears the funding concerns are specific to one company that is already suspended. But we'll continue to monitor."
The development comes amid the Chinese government’s recent guidelines to curb outbound spending. The Chinese government has put curbs on purchases of real estate and entertainment assets by Chinese companies and investors, a decision which could affect Australia’s real estate market.
The restrictions follows recent moves by Beijing to halt state banks lending to the Dalian Wanda Group, which has recently been forced to restructure its assets in Australia, namely the $2 billion worth of projects in Sydney and the Gold Coast.
Hotels, sporting teams, cinemas and the broader entertainment sector were on the restricted list, while investments in casinos and defence technology were banned.
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ASX asks 50 Chinese companies on any capital transfers problem

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<img src="https://counter.theconversation.edu.au/content/82763/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Big Chinese companies have been on an overseas buying spree in recent years, spending more than US$1.6 trillion scooping up businesses, property and “trophy assets” like football clubs.
But a directive from the Central Committee of the Chinese Communist Party puts some of this investment in Australia at risk. The directive specifically restricts outbound investments in real estate, hotels, entertainment, and football clubs. 
One of the big reasons for the crackdown is how these investments are funded. China’s financial system is dominated by banks and bank loans are the major source of corporate funding. But this is also risky - if one of these projects fails it risks the entire banking system.
The changes won’t affect large Chinese holdings in the Australian agriculture and metals sector, or personal investments in Australian property. But there will be an impact on the Australian property market - Chinese developers bought 38% of all residential property development sites in Australia last year. 
As Chinese investment in the Australian property sector will now be curtailed, we should expect money to be diverted elsewhere - into sectors that are still looked on favourably by the Chinese government. Most notably resources, agriculture, and possibly new energy technologies.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%208.43.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%208.43.36%20AM.png" alt="">
Chinese companies have also been active in the Australian hotel and entertainment industries - Fuwah Group recently purchased the Park Hyatt in Melbourne (among others), and Dalian Wanda bought the Hoyts cinema chain. 
Over the past few years, Chinese companies have splashed out on many prominent properties - China Investment Corporation bought several office buildings in Sydney and Brisbane, and Aqualand purchased waterfront property in Sydney. Dalian Wanda currently has billion dollar developments underway in Sydney and the Gold Coast.
The motivations for these large investments in Australia and elsewhere are mixed. Earning a profit and other commercial goals are undoubtedly behind some of the moves, but others are strategically important for China - such as investing in agricultural land. But we shouldn’t overlook that many of these investments are “trophy assets”, and are about bringing prestige to the companies themselves.
<h2>Why is China cracking down?</h2>
In China, according to People’s Bank of China’s data, bank lending constitutes the vast majority of total financing. Therefore, it is more than likely the bulk of these recent overseas purchases by Chinese companies is bankrolled by Chinese banks. This compares to countries like Australia, where bond markets and sharemarkets play a larger role in financing big projects and investments.
The reliance on bank loans adds risk to the financial system. Should these projects fail, or the Chinese companies be unable to repay their debts, it could destabilise the entire banking system. And as Chinese banks remain state-controlled entities, the state has effective power to direct bank lending.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%208.44.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%208.44.53%20AM.png" alt="">
The Chinese government’s directive doesn’t just restrict investment in real estate, hotels, entertainment and football. It also encourages investment in other areas - new energy, technology, resources and agriculture. The stated purpose is to ensure that investment aligns with China’s national interest and to set up procedures for monitoring and supervision of the investments.
The Chinese banking regulator, the China Banking Regulatory Commission has also started investigating five huge conglomerates - Anbang, Dalian Wanda, HNA, Fosun, and Zhejiang Rossoneri Investment which have been very active overseas. The Chinese banking regulator has askedmajor banks to provide details of the borrowing position of these companies and the risk associated with their loans.
On paper, all five conglomerates are apparently predominantly privately owned, with the possible exception of Zhejiang Rossoner Investment which was only incorporated in June 2016. Although directly or indirectly, the Chinese government will have some stake and it is hard to trace the ownership structure of large Chinese companies. 
<h2>What comes next?</h2>
There will definitely be an impact as Chinese investment dollars move away from property and prohibited other sectors. This investment currently constitutes a large proportion of Australian property development.
However, it also remains to be seen how else the Chinese government will try to achieve the “national interest”. Whether through regulatory control or through its direct control of the Chinese banking system, the Chinese government might try to influence or direct the operations of the overseas assets of these conglomerates. 
The Australian government has previously shown nervousness about enterprises in areas of national “strategic” importance, passing into the hands of Chinese businesses with connections to the Chinese government, with some acquisitions being blocked by the Foreign Investment Review Board. Increased Chinese interest is only likely to provoke increased Australian apprehension.
<a href="https://theconversation.com/profiles/he-weiping-163918" target="_blank">He Weiping</a> is lecturer in Law, Monash University and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Why China is cracking down on overseas investment

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A majority interest in the two flagship Australian developments of China's Wanda Group are to be sold to a private entity controlled by the company's founder, Wang Jianlin.
Just two days after Wanda labelled an Australian Financial Review report that is was considering a sale "completely false", the company announced the "disposal" on Thursday morning.
While the assets are being sold to a related private entity controlled by Mr Wang, one investment advisor said it was likely to be the first step in broader reorganisation of the assets.
"He [Mr Wang] has a history of taking a two-step approach to acquisitions so this looks like it's going in the opposite direction," said the person.
The announcement said the Hong Kong-listed Wanda Hotel Development will sell a 60 per cent interest in its $1 billion Circular Quay apartment and hotel tower in Sydney and its $900 million Jewel resort on the Gold Coast to Mr Wang's company, Wanda Commercial Property.
The deal should allow the Hong Kong-listed company to lower its debt levels and give Mr Wang time to reorganise the assets away from the glare of the public market.
Shares in Wanda Hotel rose as much as 41 per cent on Thursday after the asset restructuring plans were announced.
The listed vehicle is also selling its 60 per cent interest in Wanda's Chicago and London developments.
The final terms are yet to be announced, but the company said the sale price would be based on net asset values based on an independent valuation.
Wanda Hotel is also buying US$1.1 billion in assets from related entities to the group and Mr Wang. These include Wanda Culture Travel Innovation Group, which designs and constructs theme parks and Wanda Hotel Management, which designs and operates hotels.
Wanda has had its wings clipped by Beijing in recent weeks as concerns mount that it, and other private companies, have over paid for foreign assets and these now pose a systemic risk to the Chinese banking system.
Other companies targeted by authorities include the HNA Group, which holds a 13 per cent stake in airline Virgin Australia; Fosun Group, which is developing apartments in Brisbane and Sydney; and Anbang Insurance, which bought New York's Waldorf Astoria in 2014.
The crackdown is expected to filter down to smaller private companies and state-owned enterprises as Beijing worries about offshore deals going bad and capital outflows putting downward pressure on its currency.
It is also looking to avoid a Japan-style collapse, which followed an offshore acquisition binge by Japanese firms in the late 1980s and early 1990s.
China's outbound investment fell 43 per cent over the first half of this year and its Vice Minister for Commerce Qian Keming said last week that "irrational" offshore investment had been contained.
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