<p>One of the primary characteristics of a university campus is its location in high-amenity, well-connected suburbs, as it caters to the thousands of students who walk through its doors every day.</p>

<p>It’s this enviable central location that makes Hamton’s newest neighbourhood so appealing to discerning buyers. The 1.6-hectare site was formerly home to a University of Melbourne campus.</p>

<p>This relocation paved the way for <a href="https://www.apartments.com.au/developers/hamton">Hamton</a>, best known for their $3 billion joint venture development Moonee Valley Park, a vibrant new residential community emerging around the Moonee Valley Racecourse.</p>

<p>[smartcode_project:default project_id=149097 project_image_fid=327680]</p>

<p><a href="https://www.apartments.com.au/new-apartments/scotch-hill-gardens-hawthorn-147-robinson-road-hawthorn-vic-3122">Scotch Hill Gardens</a> benefits from excellent transport connections and local amenities, further enhanced by the revitalisation of Bills Street delivered as part of the development. Thanks to its history as a university campus, the site is within five minutes of Glenferrie and Auburn Villages and 10 minutes to Kooyong Station.</p>

<p>In addition, the site lies within the prestigious Scotch Hill catchment, which includes highly sought-after educational institutions such as Scotch College, Bialik, and Auburn Primary and Auburn High. This makes it an attractive location for both young families and working professionals.</p>

<p>Understanding that the location would appeal to owner-occupiers, particularly rightsizers and downsizers, Hamton focused on creating a collection of residences tailored to this demographic. The design prioritised community over density, with a series of low-rise buildings nestled within nature.</p>

<p data-end="2852" data-start="2587">[smartcode_project:default project_id=149097 project_image_fid=327652]</p>

<p>The development retains 77 established trees on the site and will add a further 151, creating a unique topography visible from the upper levels of the building. A collaboration between placemaking specialists Woods Bagot and landscape architect Tract, the design dedicates over 40 percent of the 1.6-hectare site to landscaped green open space, seamlessly woven between the low-rise buildings.</p>

<p>Landscaping subtly defines boundaries between public and private zones, ensuring a harmonious blend of spaces.</p>

<p data-end="2314" data-start="2069">[smartcode_project:default project_id=149097 project_image_fid=327686]</p>

<p>Inspired by nature, the masterplan reflects the organic formations of lily pads on a pond, discreet yet interconnected, sitting lightly within their context. Following the principles of “nature-based cities,” the site integrates nature, amenity, wellness, and community.</p>

<p>This commitment to nature complements the already well-established landscape nearby. Adjacent to Gardiners Creek, the site offers both recreational and ecological benefits, while the Yarra River trails, Patterson Reserve, and Hawthorn Velodrome, further enhance the area’s outdoor amenities.</p>

<p>[smartcode_project:default project_id=149097 project_image_fid=327694]</p>

<p>Residents will have access to a range of facilities, including a bathhouse with wellness amenities, a gym, co-working spaces, and communal dining and lounge areas.</p>

<p>Hamton will announce a builder in the coming months. Demolition of the old Campus is underway with construction on the first stage, anticipated to commence early 2026.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=149097]</p>


Joel Robinson

Scotch Hill Gardens, a new life for the former University of Melbourne Hawthorn Campus

<p>Brisbane-based developer Red &amp; Co. is venturing into the Gold Coast apartment market, spending $8 million on a vacant site in Varsity Lake.</p>

<p>The plan is to developer 156 apartments on the 2,857sqm, 22 Lake Street site, near Varsity Central Park.</p>

<p>Colliers Queensland Residential Development Sites Director Troy Linnane said Colliers had been &nbsp;working closely with Red &amp; Co. to help them secure their first Gold Coast site, with this site offering a great opportunity due to its location and existing approval.&nbsp;</p>

<p>“This off-market transaction highlights the value of strong market knowledge and relationships, we were able to align the right buyer with the right site given the relationships we have with many active &nbsp;developers seeking sites across the SEQ market,” Linnane said.&nbsp;</p>

<p>“Those groups with in-house construction capability or strong builder alliances are leading market activity as they are best positioned to deliver projects in the current market."</p>

<p>Linnane said with&nbsp;confidence strengthening in 2025, they are seeing increased competition for prime development sites.</p>

<p>“Developers are actively seeking well-located sites, to take advantage of the under supply of &nbsp;apartment stock and the significant uplift in revenues due to strong buyer demand."</p>

<p><img alt="22 Lake St" data-entity-type="file" data-entity-uuid="fcd9176e-4e38-4519-a868-0748419c1d2b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/22_Lake_Street_001.jpg?VersionId=Z7tUSkVLqv8qf.JTyMXmzasxvudP_u2p" /></p>

<p>Colliers Queensland Residential Site Sales Executive Jackson Robinson said the transaction reflected confidence in the market and increasing demand for well-located, DA-approved sites to develop into &nbsp;housing.&nbsp;</p>

<p>“Red &amp; Co. recognised the depth of unmet demand for well-priced apartment stock on the Gold &nbsp;Coast, particularly in sought-after suburbs like Varsity Lakes, which offers excellent connectivity, expansive views and close proximity to major employment and education hubs,” Robinson said.&nbsp;</p>

<p>There will be a mix of one-, two-, and three-bedroom apartments, with views over&nbsp;Lake Orr and out to Burleigh Headland and the Hinterland, with additional outlooks north towards the Broadbeach skyline.&nbsp;</p>

<p>Red &amp; Co., led by co-founders Keiran Foster and David Laverty, have previously completed several developments across Brisbane.</p>


Red & Co.’s first acquisition on the Gold Coast demonstrates increasing  confidence in the Gold Coast market

Red & Co. plots new Varsity Lake apartments

<p data-end="148" data-start="74">There’s no slowing down Gold Coast builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/immerse-projects">Immerse Projects</a>.</p>

<p data-end="325" data-start="150">Led by construction industry veteran John Kearney, the developer has made its move into the Brisbane apartment market, securing a prime site on Sylvan Road in Toowong.</p>

<p data-end="429" data-start="327">It’s a location filled with nostalgia for Kearney, who studied at the nearby University of Queensland.</p>

<p>"It feels like a full circle moment," Kearney told Apartments.com.au.&nbsp;</p>

<p>“I spent many nights at the Regatta Hotel just down the road — as have most people in Brisbane. It’s one of the city’s most well-known hotels, and with several cafes, restaurants, and a CityCat stop nearby, it’s become an even more attractive place to live.”</p>

<p>Kearney describes Toowong as a suburb with real depth.</p>

<p>"The suburb attracts everyone, from students to retirees, and that's what makes it interesting."</p>

<p>He also noted the opportunity to take advantage of significant view corridors from the new development site: across Toowong Memorial Park, north to the city, and east along the Brisbane River.</p>

<p>CBRE’s Will Carman and John Nucifora brokered the sale of the 1,760 sqm site, citing strong demand for strategically located development opportunities in Brisbane’s inner suburbs.</p>

<p>"Its proximity to transport, retail, and educational facilities made it an opportunity of strong interest to the broader development community," Carman said.</p>

<p><img alt="22-24 Sylvan Road" data-entity-type="file" data-entity-uuid="49eb466f-69dc-4790-8d50-5173d0cf104a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/22-24%20Sylvan%20%20Rd%20Toowong_Markups.jpg?VersionId=u4_IGzpYLPFfAZSsgCZynov3bm7umwJ." /></p>

<p>Nucifora said the acquisition reflects confidence in <a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a>, and more broadly Brisbane, as a market of strength for integrated builder developer groups.</p>

<p>"Those with an integrated model, or with strong existing relationships with builders have continued to be at the forefront of development acquisitions over the past two-year period."</p>

<p>Kearney has long operated Greyburn Constructions, and recently expanded into multi-residential development, with great success. They've delivered a new project in Kirra, and they're currently working towards completion at&nbsp;Ombre Robina. Then they have a new project in Kirra, on Haig Street.</p>

<p>They will submit a development application for Toowong later this year.&nbsp;</p>


It’s a location filled with nostalgia for Kearney, who studied at the nearby University of Queensland.



First look: Immerse Projects moves into Brisbane apartment market with Toowong site acquisition

<p data-end="405" data-start="189">A track record of delivering new projects not just across the Sunshine Coast, but in <a href="https://www.apartments.com.au/developments/bokarina-qld-4575">Bokarina</a> specifically, gave builder-developer <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG) all the IP needed to make Bask even more refined.&nbsp;</p>

<p>After completing Zinc Bokarina last year - positioned directly adjacent to Bask - GVG leveraged years of feedback from original purchasers and current residents, enabled by its community-focused approach and ongoing engagement.</p>

<p data-end="595" data-start="407">[smartcode_project:default project_id=141609 project_image_fid=333359]</p>

<p>The feedback pointed to two clear themes: larger apartments with more bedrooms, and amenity suited to the active downsizer.</p>

<p>GVG then designed <a href="https://www.apartments.com.au/new-apartments/bask-bokarina-38-bokarina-boulevard-bokarina-qld-4575">Bask</a> - a collection of one to four-bedroom apartments - tailored to the end user: local downsizers or those seeking more spacious holiday homes than a compact getaway by the beach.</p>

<p data-end="925" data-start="726">[smartcode_project:default project_id=141609 project_image_fid=333361]</p>

<p>A pool was essential, but a lap pool wasn’t. Instead, GVG designed a heated plunge pool, ideal for a refreshing dip. Key to the amenity offering were shared spaces designed to foster community connection. These include shaded garden areas with barbecue facilities, a firepit zone, and a communal herb and vegetable garden.&nbsp;</p>

<p>There’s also a fully equipped gym, designed specifically for the lifestyle exerciser.&nbsp;</p>

<p data-end="1335" data-start="1250">[smartcode_project:default project_id=141609 project_image_fid=333365]</p>

<p>Another key insight was the desire not just for pet-friendly living - but for a development that embraces it. GVG listened and installed a dedicated dog wash bay, perfect for rinsing off after a trip to the dog-friendly Bokarina Beach, just 250 metres from Bask's front door.</p>

<p>Having already helped establish a vibrant lifestyle precinct with retail and amenity at Zinc, GVG is now expanding the offering with more street-level retail, set to complement the existing restaurants, wine bars, convenience, and specialty stores in the precinct.</p>

<p data-end="1901" data-start="1616">[smartcode_project:default project_id=141609 project_image_fid=333362]</p>

<p>Bask represents the final new residential offering in the Bokarina Beach precinct. The two buildings, Mydas and Caretta, have been cleverly designed so that every apartment captures glimpses of either the Pacific Ocean, Lake Kawana, or the Glass House Mountains.&nbsp;</p>

<p>Construction is already underway, with GVG expecting residents to move in by summer 2026/27.</p>

<p>[smartcode_project_cta:default project_id=141609]</p>


How GVG is designing for the active downsizer at Bask Bokarina

<p>With completion now on the horizon, <a href="https://www.apartments.com.au/new-apartments/the-queensbridge-building-southbank-90-queensbridge-street-southbank-vic-3006">The Queensbridge Building</a> in Southbank is beginning to reveal the depth of its amenity and residential design offering ahead of a planned move-in from late 2025.</p>

<p>Developed by <a href="https://www.apartments.com.au/developers/time-place">Time &amp; Place</a> in partnership with MaxCap Group and construction giant&nbsp;<a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, the 65-level tower recently topped out at 208 metres, marking a major milestone for the precinct-shaping project.&nbsp;</p>

<p>Once complete, the development will deliver 350 apartments and a 188-room boutique hotel as part of the Collection by TFE Hotels.</p>

<p>We recently visited The Queensbridge display suite, and a recently completed display apartment within the building, and spoke to Time &amp; Place Sales Director, James Herbert, to find out more about the project.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/ZLV_4kRyuj0?si=ff-i-yjmcdRHQ3Hh" title="YouTube video player" width="560"></iframe></p>

<p>Herbert says there are two key points of difference with The Queensbridge.</p>

<p>"The first we call 'modern nostalgia', or the feeling of home. It is one of the reasons we appointed <a href="https://www.apartments.com.au/architects/flack-studio">Flack Studio</a> to handle the interiors. We studied some of Flack's most famous residential homes, and we've created a series of design moments, from the edge of the island bench to the door hardware and the materiality of the homes."</p>

<p>Apartments range from one to three bedrooms, with current pricing starting from $632,000. Most one-bedroom layouts include integrated study nooks, while select two and three-bedroom configurations feature dual bathrooms and generous storage solutions.</p>

<p>[smartcode_project:default project_id=1504 project_image_fid=272073]</p>

<p>Herbert says the second key point of difference is their&nbsp;commitment to community and experience.</p>

<p>"That's one of the reasons why we took our common amenity spaces and we've brought them together in a concept we call Queensbridge Clubhouse.</p>

<p>"We have all of the typical common amenity facilities you would see in any luxury hotel or building throughout the world like a swimming pool, steam room, gym, and outdoor spaces, but we've also got an amazing co-working space,&nbsp;a private izakaya, and a ground-floor dining space."</p>

<p>[smartcode_project:default project_id=1504 project_image_fid=272090]</p>

<p>Herbert says the community experience was about bringing&nbsp;people together, so Time &amp; Place has built a bespoke app, and they're appointing an experienced director, to manage the spaces.</p>

<p>"We believe living in the urban environment in a building like this, is about an idea of togetherness, and accessing the very best that Melbourne has to offer."</p>

<p>[smartcode_project:default project_id=1504 project_image_fid=272097]</p>

<p>Positioned at 90 Queens Bridge Street, The Queensbridge Building benefits from its location at the confluence of Melbourne CBD, South Melbourne, the Yarra River, and the city’s Arts Precinct.&nbsp;</p>

<p>Residents will be within a 15-minute walk of over a dozen green spaces, world-class sports and cultural venues, and South Melbourne Market</p>

<p>The inclusion of the Hannah St. Hotel adjacent to the residential lobby also introduces a unique layer of amenity, providing additional hospitality experiences that extend the lifestyle value of the precinct.</p>

<p>[smartcode_project_cta:default project_id=1504]</p>


Inside The Queensbridge Building: Apartments.com.au Video Spotlight

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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>
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<div>Investment is now rotating away from mining and resources and into real estate.</div>
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<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>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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<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>
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<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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