<p><a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.</p>

<p>The sale equates to around $37,500 per sqm.</p>

<p>The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.</p>

<p>Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.</p>

<p>“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.</p>

<p>“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323057]</p>

<p>The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.</p>

<p>Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.</p>

<p>When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.</p>

<p>“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.</p>

<p>“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323055]</p>

<p>Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.</p>

<p>Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.</p>

<p>“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”</p>

<p>Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323052]</p>

<p>The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.</p>

<p>Mould said the design intent was to balance that outlook with a sense of retreat.</p>

<p>“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”</p>

<p>The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.</p>

<p>[smartcode_project_cta:default project_id=146358]</p>


Joel Robinson

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

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<span style="line-height: 1.3em;"> </span><span style="line-height: 1.3em;">I read with interest this week that the office block at Sydney's 175 Liverpool was sold off to a Chinese property group.</span>
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<div>As good a time as any, then, to have a quick look at some Chinese investment trends.</div>
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<div>Doug Ferguson of KPMG and Professor Hans Hendrischke of the University of Sydney have teamed up with Knight Frank to produce an excellent and enlightening summary report on this very subject, entitled <a href="https://demystifyingchina.com.au/reports/demystifying-chinese-investment-2015.pdf" target="_blank">Demystifying China</a>.</div>
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<div>It's well worth a read. </div>
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<div>Below are just a few of their key findings.</div>
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<div><strong><span style="text-decoration: underline;">Trend 1 - Commercial real estate investment quadruples</span></strong></div>
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<div>In 2014, Chinese overseas investment in Australia was largely focused on commercial real estate at 46% of the total ($4.4 billion), with mining now accounting for just 11% $992 million)</div>
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<div>Chinese investment in commercial real estate nearly <em>quadrupled</em> in only one year to $4.37 billion.</div>
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<div><a href="/images/2015/06/22/China1.jpg" target="_blank">Click to enlarge</a></div>
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<div><span>A few of the larger investments in 2014 included the Hoyts Group, the Port of Newcastle, the Sheraton on the Park and the flagship Gold Field House at Sydney's 1 Albert.</span></div>
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<div><a href="/images/2015/06/22/China2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div>These trends are only set to continue as the threshold for outbound investment was raised tenfold from US$100 million to US$1 billion in October.</div>
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<div>Incredibly, the report notes that the total assets of China's insurance industry doubled in the past 5 years to RMB 9.6 trillion (US$ 1.6 trillion).</div>
<div> </div>
<div>Investment is now rotating away from mining and resources and into real estate.</div>
<div> </div>
<div>This stunning graphic puts into context just how serious Chinese investment is in the "gateway cities" of Sydney and Melbourne.</div>
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<div>Not that these figures <em>exclude</em> residential property. </div>
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<div><a href="/images/2015/06/22/CHina3.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/06/22/CHina3.jpg" alt=""></div>
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<div>
<div>The report found that Brisbane and the Gold Coast are beginning to capture more Chinese residential developer interest, in particular around Brisbane's Newstead and Fortitude Valley (I live there, and yes that is definitely the case).</div>
<div> </div>
<div>Here is a list of some of the key properties bought by Chinese investors in the 15 months to March 2015.</div>
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<div><a href="/images/2015/06/22/China4.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/06/22/China4.jpg" alt=""></div>
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<span>The trend is only set to continue, if not accelerate.</span><br><br><strong><span style="text-decoration: underline;">Trend 2 - Currency play</span></strong><br><br><div>Purchasing power for Chinese capital against the Australian dollar has increased massively over the past decade, which only encourages further investment.</div>
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<div><a href="/images/2015/06/22/China5.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/06/22/China5.jpg" alt=""></div>
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<strong><span style="text-decoration: underline;">Trend 3 - A New South Wales focus</span></strong><br><br><span>It is interesting to note that a massive 72 per cent of Chinese investment hits New South Wales.</span>
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<div><a href="/images/2015/06/22/China6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div><span><img src="/images/2015/06/22/China6.jpg" alt=""></span></div>
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<div><span>Australia is encouraging further Chinese investment with the Significant Investor Visa (SIV, A$ 5 million) now being refined with a Premium Investor Visa (PIV, $15 million) offering a more expeditious route to Australian permanent residency within 12 months for ultra-high net worth individuals.</span></div>
<div><span> </span></div>
<div>
<span><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></span>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Chinese investment rotates to real estate: Pete Wargent

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<p><span>What started as Chinese sovereign funds making exploratory investments in Australia has now proliferated into investment sprees by Chinese developers, banks, ultra high net worth individuals (UHNWI’s) and institutional investors such as insurance companies.</span></p>
<p><span>The attractiveness of mature gateway markets in the UK, US and Australia is pulling capital out of China, providing quality products and higher yield returns with diversification benefits and assisting institutions and developers build their brand internationally. </span></p>
<p><span>The first wave of Chinese capital outflow saw sovereign wealth funds, banks and private funds investing in core, trophy assets with examples including CIC and Bright Ruby Group acquiring core office assets in the Sydney CBD. Large developers followed, looking to diversify with an overseas presence.</span></p>
<p><span>The 10th Demystifying Chinese Investment report was by KPMG and The University of Sydney, who given the unprecedented increase in commercial real estate investment partnered with Knight Frank, to provide a more detailed account of Chinese commercial real estate investment activity in Australia.</span></p>
<p><span>"The catalyst for our report series is the historic lack of detailed factual information about the real nature and distribution of China’s outbound direct investment (ODI) in Australia," report authors Doug Ferguson and Hans Hendrischke said.</span></p>
<p><span>"Our reports seek to set the record straight and debunk the myths associated with Chinese investment in this country," </span></p>
<p><span>It noted, somewhat dichotomously, the Federal Government has proposed changes to the foreign investment framework or private residences in Australia, announced as part of an options paper released in February 2015.</span></p>
<p><span>"This may impact Chinese commercial investment flows.</span></p>
<p><span>"However, even if implemented in their entirety, it is unlikely to deter the large scale development and investment into commercial and residential markets."</span></p>
<p><span>Here are <em>Property Observer's</em> 17 key takeouts of<a href="https://demystifyingchina.com.au/reports/demystifying-chinese-investment-2015.pdf" target="_blank"><span> the 8000 word report</span></a>.</span></p>
<p><span>1) The gateway cities of Australia, namely Sydney and Melbourne, have been the most active markets for Chinese investors. With their relative geographic proximity, relatively higher yields, market stability and liquidity, total Chinese real estate investment volume in these two cities outstripped both London and New York in 2014. </span></p>
<p><span>2) But China’s outward investment into real estate has seen Chinese high net worth investors and developers now looking to new destinations offering discounts on prime property such as Miami in the US; and in Australia, Brisbane, Gold Coast, Adelaide and regional suburbs of NSW and Victoria will start to gain more traction. </span></p>
<p><span>3) For the first time, nearly half of Chinese investment was concentrated in commercial real estate transactions, up from 14% in 2013.</span></p>
<p><span>4) For the first time, Chinese private sector investment in Australia exceeded state owned enterprise investment in number of deals (85% of total) as well as in total value (66%, AUD 6.23 billion) in 2014. Fifty-one private deals were recorded in 2014, compared to 25 in 2013.</span></p>
<p><span>5) NSW attracted 72% of investment.</span></p>
<p><span>6) Australia maintained its position as the second largest recipient country of aggregated global Chinese direct investment between 2007 and 2014, behind the United States in first position.</span></p>
<p><span>7) According to the Australian Bureau of Statistics, China now ranks as Australia's fifth largest investor with 4% of investment stock, behind the United States (24%), the United Kingdom (13$), Japan (10%) and the Netherlands (6%), equal to Singapore (4%) and ahead of Canada (3%).</span></p>
<p><span>8) Chinese direct investment in Australia in 2014 was mainly focused on commercial real estate, infrastructure and for the first time, a material investment in the tourism and leisure sectors.</span></p>
<p><span>9) 2014 saw a dramatic increase in commercial real estate investment, accounting for 46 percent of the total 2014 value – up from 14 percent in 2013. Chinese investment volume in commercial real estate has nearly quadrupled in one year to A$4.37 billion, a surge fuelled by a combination of push and pull factors, with a number of key domestic economic and policy variables contributing. </span></p>
<p><span>10) Another major push comes from some significant easing of overseas investment policies. For example, in late 2013 the outward investment approval threshold was raised from USD 100 million to USD 1 billion and in October 2014, the Ministry of Commerce removed prior approval for most foreign investment. The total assets of China’s insurance industry doubled over the past 5 years to RMB 9.6 trillion (USD 1.6 trillion) as at October 2014. By 2020, authorities estimate that the Chinese insurance industry will accumulate a further RMB 20 trillion worth of premiums, tripling the current pool size.</span></p>
<p><span>11) There are a number of pull factors at play fuelling investment in overseas markets:</span></p>
<ul>
<li><span>As these investors and developers already have extensive domestic exposure, offshore investments help them diversify risk into markets that offer better returns and lower funding costs. Funding costs in Shanghai and Beijing are very high, notwithstanding recent cuts, often at above 8 percent. In contrast, funding costs can be as low as 4 percent in Australia and an easing cycle is underway. </span></li>
<li><span>Deep, liquid and transparent markets with scale – clarity of rules and regulations. </span></li>
<li><span>The quality of life, weather, clean air and world class education institutions all act as a magnet to Chinese developers and migrants alike. </span></li>
<li><span>Overseas acquisitions help Chinese institutions build their brands internationally. </span></li>
<li><span>Owner occupiers (eg. big banks) use investments to help manage their future occupation costs. Banks such as CCB, Bank of China, Agricultural Bank of China and Commercial Bank of China have all been active in the commercial market globally over the past year. <br>  </span></li>
<li><span>12) For many wealthy Chinese, the risk of buying property in unfamiliar overseas markets such as Australia can be offset by buying projects offered by Chinese developers, providing a sense of both familiarity and pride. However, our recent conversations with several pioneering Chinese developers revealed that they are increasingly realising the need not just to cater for Chinese buyers, but to tailor project design elements and marketing strategies to the broader local markets. </span></li>
</ul>
<ul>
<li><span>They are no longer distinguishing buyers by nationality or relying primarily on demand from Chinese buyers. Robust local sales conditions have become one of their most commonly stated criteria for project screening. They aim to expand and leverage their brand identity overseas and to take advantage of this demand. Chinese developers, however, have the added advantage of being able to attract a significant pool of Chinese buyers, who often purchase off-plan, which helps to de-risk their development projects. Greenland has invested heavily into Australian development projects, tapping predominately into cities such as Sydney and Melbourne. Dalian Wanda Group, one of China’s largest mixed-use developers, is developing major hotel and residential projects in Sydney and the Gold Coast.</span></li>
</ul>
<p><span>13) Since the end of 2007 and the onset of the GFC, the Renminbi (RMB) has appreciated considerably against a basket of major currencies, including 37 percent against the British Pound, 38 percent against the Euro, 15 percent against the US dollar and 26 percent against the Australian dollar. This has largely strengthened the purchasing power of Chinese investors, as overseas investment has become relatively cheaper. Many Chinese investors see this as a good opportunity to acquire foreign assets. </span></p>
<p><span>In the face of a cooling Chinese economy, RMB appreciation is expected to slow down in the coming years. Currency fluctuation is a double-edged sword for Chinese investors. Since Greenland’s acquisition of their Melbourne site, the Australian dollar has depreciated roughly 18 percent against the Renminbi. On the flip side, this devaluation now favours any Chinese investors who buy into this and any other residential schemes.</span></p>
<p><span>14) Currently, the third wave of equity investors and insurance firms are seeking core, value-add and yield-driven opportunities. Only four of the top 10 Chinese insurance companies have made offshore investments so far, although the remaining six are considering overseas expansion. Sunshine Insurance Group’s purchase of the Sheraton on the Park Hotel in Sydney for a record AUD 463 million in November 2014.</span></p>
<p><span>15) Chinese developers, however, have been more aggressive, with eight of the top 10 players having already made offshore investments, seven of which have been active in Australia, and other developers are contemplating such a move. Greenland Group, one of Shanghai’s largest state- owned enterprises, has purchased numerous development sites in Sydney’s CBD and other metropolitan markets in Sydney and Melbourne. Other developers currently actively developing product include Country Garden, Chiwayland, Bridgehill, Aqualand, Golden Age, JQZ, R&amp;F Properties, Golden Horse and Dalian Wanda (Wanda One). </span></p>
<p><span>After heavy investment in prime office buildings and subsequent yield compression in gateway cities, Chinese investors have begun to look increasingly at opportunities in other key cities and other property sectors and importantly in suburban locations in metropolitan Sydney, Brisbane and Melbourne, not just within the CBD and fringe markets.  </span></p>
<p><span>Whereas investors traditionally targeted the core office and residential development sector, they are now also targeting a more diversified group of real estate assets, from hotels and leisure to industrial to student accommodation. Brisbane and the Gold Coast have begun to capture more residential development interest from Chinese investors and developers. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>There has been increasing activity in non-core areas of Brisbane, such as Newstead and Fortitude Valley, and this is expected to broaden to more metropolitan sites and to the Gold Coast, where Wanda has co-invested in an AUD 1 billion beachfront site. These markets are underpriced relative to Sydney and Melbourne, and we expect Chinese developers to continue to seek entry to these markets. </span></p>
<p><span style="line-height: 1.3em;">Adelaide and more satellite or regional suburbs of NSW and Victoria will start to gain traction/interest from Chinese and we should see some stronger price growth occur also. In the commercial sector, retail and hotels will start to garner more interest following relatively subdued activity over the past few years relative to office and residential development sites.</span></p>
<p><span style="line-height: 1.3em;">16) A new group of entities is quickly emerging as a fourth wave of capital outflow. This group constitutes not only big-name companies, but also UHNWIs, small- to mid- cap SOEs, and smaller, private developers. UHNWIs are exploring Australian investment opportunities mainly for secured income, capital appreciation, risk diversification, personal interest and to link with the strong education sector. Their investment strategies are far ranging, and they are open to different asset classes, with interests ranging from smaller shopping centres, such as the Campsie Centre, to offices such as 299 Elizabeth Street in the Sydney CBD, residential units and lifestyle properties.</span></p>
<p><span style="line-height: 1.3em;">17) Given the distinctive policy-driven nature of the Chinese market, however, Australia should equally be aware of the risk of policy reversals over time.</span></p>
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jchancellor-FAypfDUnLy

17 facts about Chinese investment in Australia: KPMG/University of Sydney/Knight Frank

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<p><span>The next wave of Chinese capital flowing into Australia property will target new destinations like Brisbane, Gold Coast, Adelaide, Perth and the suburbs of Sydney and Melbourne, according to Knight Frank.</span></p>
<div class="cq-article-content-paras section">
<p>But the impetus will not come from traditional property developers, rather its insurance companies.</p>
<p class="Normal"><span style="line-height: 1.3em;">According to Knight Frank’s latest report, </span><span class="Hyperlink__Char" style="line-height: 1.3em;"><span class="Hyperlink__Char">Chinese Outward Real Estate Investment Globally and Into Australia</span></span><span class="Normal__Char" style="line-height: 1.3em;">,</span><span class="Normal__Char" style="line-height: 1.3em;"> </span><span style="line-height: 1.3em;">the total value of Chinese outward real estate investment globally skyrocketed from US$0.6 billion in 2009 to US$16.9 billion in 2014 across the world.</span></p>
<p class="Normal"><span style="line-height: 1.3em;">Already over US$7.8 billion has transacted in the first four months of 2015 (data excludes residential dwellings). </span></p>
<p class="Normal"><span class="Normal__Char" style="line-height: 1.3em;">Knight Frank’s Dominic Ong, senior director of Asian markets, capital markets</span><span style="line-height: 1.3em;">, said so far the majority of the Chinese outward investment has been focused in gateway cities of Australia, the US and the UK.</span></p>
<p class="Normal"><span style="line-height: 1.3em;">“What first started as sovereign funds making exploratory investments has proliferated into buying sprees by Chinese developers, banks, Ultra High Net Worth Individuals (UHNWIs) and institutional investors, such as insurance companies. </span></p>
<p class="Normal"><span style="line-height: 1.3em;">"By 2020, authorities estimate that the Chinese insurance industry will accumulate a further RMB20 trillion worth of premiums, tripling the current pool size.</span></p>
<p class="Normal"><span style="line-height: 1.3em;">“This current wave of equity investors and insurance firms are seeking core, value-add and yield-driven opportunities," Dominic Ong said.</span></p>
<p class="Normal"><span style="line-height: 1.3em;"> Among the big-cap players, only four of the top 10 Chinese insurance companies have made offshore investments so far, although the remaining six are considering overseas expansion. </span></p>
<p class="Normal"><span style="line-height: 1.3em;">Sunshine Insurance Group is the only one to invest in Australia, purchasing the Sheraton on the Park Hotel in Sydney for a record AU$463 million.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Normal">“For Chinese investors in the Australian market, the gateway cities – namely Sydney and Melbourne – have been the most active market for Chinese investors.</p>
<p class="Normal">"The next wave of Chinese investors are diversifying more and broadening to areas such as Brisbane, Adelaide, Gold Coast, Perth and metropolitan suburbs of NSW and Victoria, which will all start to gain more traction.</p>
<p class="Normal"><span style="line-height: 1.3em;">“These investors will also diversify by broadening their sector allocation from core office and residential developments into hotels and leisure, student accommodation, industrial assets and mixed-use developments,” said </span><span class="Normal__Char" style="line-height: 1.3em;">Mr Ong</span><span style="line-height: 1.3em;">.</span></p>
<p class="Normal"><span style="line-height: 1.3em;">Click to enlarge</span></p>
<p class="Normal"><span style="line-height: 1.3em;"><img src="/images/2015/05/20/Screen%20Shot%202015-05-20%20at%207.44.49%20AM.png" alt=""></span></p>
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