<p>One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.</p>

<p>Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.</p>

<p>The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" /></p>

<p>Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.</p>

<p>Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.</p>

<p>The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.</p>

<p>"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" /></p>

<p>Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.</p>

<p>According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.</p>

<p>Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.</p>

<p>&nbsp;</p>

<p>FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.</p>

<p>Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.</p>

<p>Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.</p>


Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

<p>Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.</p>

<p>The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.</p>

<p>The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.</p>

<p>The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.</p>

<p><img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" /></p>

<p>The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;</p>

<p>PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.</p>

<p>Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.</p>

<p>A major focus of the design has been the public domain.</p>

<p>The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.</p>

<p>The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.</p>

<p data-end="239" data-start="66">Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.</p>

<p data-end="442" data-start="241">Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.</p>

<p data-end="661" data-start="444">Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.</p>

<p data-end="909" data-start="663">Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a></em></p>

<p data-end="1339" data-start="1019">Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a></em><br />
&nbsp;</p>

<p>&nbsp;</p>

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<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.</p>

<p data-end="843" data-start="497">At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.</p>

<p data-end="1109" data-start="848">The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.</p>

<p>"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.</p>

<p>The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.</p>

<p>Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.</p>

<p>The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.</p>

<p>The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Chinese Buyers

<html><body>
<p>The nation's top sale was on Sydney's upper North Shore when a Pymble home was snapped up pre-auction for $6.5 million.</p>
<p>It sold to a family from China who saw the property just three days before they exchanged.</p>
<p>Menton, marketed as a French Provincial-style oasis, came with saltwater pool, N/S tennis court, and a climate controlled 2,100 bottle wine cellar.</p>
<p><a id="x_mcntLPlnk442456" href="https://www.realestate.com.au/sold/property-house-nsw-pymble-127813398" target="_blank">The 1726 sqm property</a> (above and below) last traded at $2.8 million in 2002.</p>
<p>The vendors decided to take the offer, which was at the high end of their expected range rather than go to auction.</p>
<p>"It's a 'bird in the hand' at the moment," the upper North Shore selling agent told Fairfax Media.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/10/pymble1.jpg" alt=""></p>
<p>Sydney also saw the sale of <a id="x_mcntLPlnk755832" href="https://www.realestate.com.au/property-house-nsw-hunters+hill-126659642" target="_blank" rel="noopener noreferrer">23 Lyndhurst Crescent, Hunters Hill</a>, a five bedroom riverfront home which sold for $6.18 million.</p>
<p>But its sale was at below the $6.2 million price guidance. It was even further<span> down on the $7.6 million guide figure given last October, when it was initially listed for sale.</span></p>
<p><span>It sold to cake makers from <span>Greenacre, <span>one of the three who participated in Saturday’s auction after six had registered, The Sunday Telegraph reported.</span><br></span></span></p>
<p>Sydney's preliminary success rate sat at 67 percent. </p>
<div>Sydney's result from 775 auctions saw a steady 67 percent clearance rate on the prior weekend, but down on the 77 percent at this time last year.</div>
<div> </div>
<div>The nation's strongest clearance rate was in Melbourne, according to CoreLogic, at 69 percent.</div>
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<div>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/auction-wrap.jpg" target="_blank">to enlarge.</a>
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<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/10/auction-wrap.jpg" alt=""></div>
<p>Melbourne had some 720 homes listings, increasing on last week’s 65.5 per cent final clearance rate when there was a much lower 152 auctions held given the Easter break.</p>
<p>The auction of dual premiership player Thorold Merrett’s Doncaster East home saw a $1.12 million result.</p>
<p>Philip Webb auctioneer Anthony Webb said local downsizers secured <a id="x_mcntLPlnk103044" href="https://www.realestate.com.au/sold/property-townhouse-vic-doncaster+east-127754922" target="_blank" rel="noopener noreferrer">the single-level three-bedroom townhouse</a>. </p>
<p>Merrett, a two-time premiership player in the 1950s, told the Herald Sun he would miss the neighbourhood.</p>
<p>The agency had been quoting $900,000 to $990,000, with six bidders taking the price well beyond.</p>
<p>CoreLogic records indicated it last sold in 2007 at $575,000.</p>
<p>Melbourne's top sale was in Williamstown.</p>
<p>The three bedroom house at <a id="x_mcntLPlnk621219" href="https://www.realestate.com.au/property-house-vic-williamstown-127753482" target="_blank" rel="noopener noreferrer">218 Osborne St, Williamstown</a> fetched $3.02 million.</p>
<p>Corinda, set in South Williamstown, had been listed with $2.7 million to $2.8 million price guidance.</p>
<p>The nation's cheapest auction was at <a id="x_mcntLPlnk890323" href="https://www.realestate.com.au/property-unit-vic-thornbury-127780190" target="_blank" rel="noopener noreferrer">8/54 Martin Street, Thornbury</a> for $335,000. The Melbourne sale fell within the price guidance range of $315,000 to $340,000 for the one bedroom 1970s apartment.</p>
<p>CoreLogic put its last sale price as $249,500 in 2002.</p>
<p>The Canberra clearance rate fell to just 59 percent, which was the nation's third strongest success rate with 88 homes listed.</p>
<p class="x_mcntfirst-para">A 1960s Griffith home on one of Canberra’s prestigious streets, constructed of stone, brickwork and Australian timbers, fetched its highest price.</p>
<p class="x_mcntfirst-para">The 26 Jansz Crescent offering fetched $1.641 million, with Domain noting it was announced on the market at $1.610 million.</p>
<div class="x_mcntin-content-ad">Held by the same family for 57 years, the four-bedroom, one-bathroom home on 1106 sq m had eight registered bidders.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">The official land value was $953,000.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">Adelaide also recorded a success rate of 59 percent from 93 homes listed.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">
<div>The Brisbane market had a 40 per cent clearance rate from the 91 homes listed for auction. </div>
<div> </div>
<div>A Georgian-style home at Chelmer sold under the hammer, fetching $1,675,000 through Brad Robson of Place Real Estate.</div>
<div> </div>
<div>The five bedroom property at <a id="x_mcntLPlnk629838" href="https://www.realestate.com.au/property-house-qld-chelmer-127736178" target="_blank" rel="noopener noreferrer">2 Morley Street</a> sold to an upsizing local couple.</div>
<div> </div>
<div>
<a id="x_mcntLPlnk118395" href="https://www.realestate.com.au/property-house-qld-camp+hill-127791470" target="_blank" rel="noopener noreferrer">A newly built four bedroom Camp Hill home </a>was among Brisbane's top sales at $1.05 million.</div>
<div> </div>
<div>At Carindale a $1.35 million offer for <a id="x_mcntLPlnk562954" href="https://www.realestate.com.au/property-house-qld-carindale-127834386" target="_blank" rel="noopener noreferrer">a three-storey, four bedroom home</a> at 45 Nelson Place was not enough to secure a sale, with the auction ending on a $1.5 million vendor bid.</div>
<div>
<p>The home was the project of Steve Stamatiou, a builder at Mati Constructions, and his wife Andrea, with the Courier Mail reporting they built the home over seven months in the French provincial architecture style. </p>
<p>The 518 sqm building block had cost $535,000 in 2016.</p>
<p>It came with a four-metre-long ‘White Princess’ Granite breakfast bar, full suite of European appliances and a butler’s pantry so large that it almost doubles as a second kitchen, the marketing by Place agent Denis Najzar said.</p>
</div>
</div>
<div class="x_mcntin-content-ad">
<div>After the Easter slowdown, the national preliminary clearance rate rose along with higher volume of auctions with 1,813 homes taken to market returning a 65.3 per cent success rate.</div>
<div> </div>
<div>The higher activity followed the Easter period slowdown which saw only 670 auctions held across the capitals and a 64.8 per cent final auction clearance rate.</div>
<div> </div>
<div>Overall results by property type, saw 70 per cent of units selling at auction this week, which was higher than houses which returned a 63.4 per cent clearance rate.</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

Chinese buyers secure top weekend auction offering 

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<p>While there’s been a marked fall in Chinese residential property buying across Sydney, the depth of the enrichened 1.4 billion Chinese population means there is always likely to be some demand coming our way.</p>
<p>China has 1,340 high net worth individuals and 568 billionaires. Their combined net worth is equivalent to Australia’s GDP.</p>
<div>The Chinese New Year festivities, currently being celebrated, triggers the biggest international travel period of the year for mainlanders.</div>
<div> </div>
<div>In 2017 Australia was the fifth most popular overseas destination for Chinese New Year trips, according to Ctrip, China’s online travel agency.</div>
<div> </div>
<div>Chinese residents who are considering buying real estate often use the holiday week to combine fun and a bit of research.</div>
<div> </div>
<div><span lang="EN-US"><span lang="EN-US">Jon Ellis, the CEO of the <span id="0.5791612715808651">Investorist website which sells off the plan properties to Chinese buyers, calls this occurrence "</span></span>propidays." </span></div>
<div><span lang="EN-US"> </span></div>
<div>Historical data from Realestate.com.au suggests Sydney's eight most popular searched suburbs have been Chatswood and Epping followed by Carlingford, Hornsby, Eastwood, Hurstville, Mosman and Rhodes. Locations with vibrant Asian communities clearly attract the most interest.</div>
<div> </div>
<div>Australia welcomed a record 1.3 million Chinese visitors last year, and many are not just tourists — but potentially students, immigrants and property investors.</div>
<div>  </div>
<div>The Juwai website ranks the top Australian cities for Chinese buyers as Melbourne, then Sydney, Brisbane, Adelaide, and the Gold Coast. </div>
<div> </div>
<div>Jawai's chief executive Carrie Laws expects Chinese buying in 2018 to be on par with the levels of 2017, unless something significant happens to change the Chinese or Australian investing environment.</div>
<div> </div>
<div>"One reason Chinese investors seek out property in Australia if because of our cost of living," she suggest adding it surprises many Australians as China was still regarded as being such a poor country.</div>
<div> </div>
<div>"China's eastern coastal region is just as developed as Australia and its 200 million people live in some of the most expensive cities in the world," she says.</div>
<div> </div>
<div>Buyers looks for their own use, plus their investment potential.</div>
<div> </div>
<div>Australia's reputation as a world class property investment location with particular appeal for Chinese buyers remains unquestioned, but several factors, here and in China, have worked against its popularity.</div>
<div> </div>
<div>These include NSW and federal governments which have increased taxes on foreign property investors.Some developers think the escalation of government changes imposed on foreign property investors risk killing the golden goose.Australia’s Foreign Investment Review Board (FIRB), the Australian Tax Office and immigration officials are now monitoring acquisitions closer than ever to ensure compliance.But divestment order numbers have faded recently.</div>
<div> </div>
<div>The most recent NSW divestment was $210,000, one of 14 forced sales of Australian residential properties in the past year.It took the total number of forced sales to 75 across Australia across many nationalities.A further 139 foreign investors have sold properties during the course of ATO investigations.</div>
<div> </div>
<div>This article was first published in the Saturday Daily Telegraph.</div>
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jchancellor-FAypfDUnLy

Chinese demand will always stay despite marked drop

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<p class="first-para">A local North Shore family, from China, have spent $13 million on the Wahroonga estate of Karen O’Hanlon, wife of tech company entrepreneur Dominic O’Hanlon.</p>
<p><span class="lead-wide"><span class="domain-article-caption"><a href="https://www.realestate.com.au/sold/property-house-nsw-wahroonga-107911231" target="_blank">The Wahroonga mansion</a> sale set an upper north shore record through <span class="photographer">Jane Colyer and William Zhang of Chadwick Real Estate.</span></span></span></p>
<p>O’Hanlon, who heads up the ASX-listed software licensing provider Rhipe, bought the Water Street trophy home in 2011.</p>
<p>It was bought for $6.9 million from the software entrepreneur Paul Phillips.</p>
<p>The six-bedroom, six-bathroom mansion sits on 4000 square metres with a tennis court with lights.</p>
<p>There's also a children’s playground, an indoor swimming pool, and poolside cabana with a pizza oven.</p>
<p>The sale tops Sydney’s $12 million upper north shore record set six months ago when a buyer from China with Foreign Investment Review Board approval, Shuxin Zhou, bought the Springfields estate in Warrawee.</p>
<p>It was signed off the day before the state government’s new laws took effect doubling the stamp duty surcharge for foreign buyers.</p>
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firstname1-iYD4UYzvBa

New upper North Shore record price paid by local Chinese family

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<p dir="ltr">EXPERT OBSERVATION</p>
<p dir="ltr">The continued appreciation of the yuan could put pressure on the Chinese Government to ease the capital outflow restrictions which have impacted investment in Australian commercial property.</p>
<p dir="ltr">The issue for China is that the yuan is up massively over the last 12 months and that has been driven by the new capital control regulations which have been very effective in turning around the outflow of capital.</p>
<p>However that appreciation could see Chinese goods becoming less competitive and that is not what the Chinese will want to see.</p>
<p>If that is the case then it seems clear that some tinkering with those new capital outflow regulations, and among them those pertaining to real estate transactions, will occur and that will help to both stabilise the yuan at a level that is acceptable to China, and of course benefit Australian commercial property.</p>
<p>According to a report from London based Pictet Wealth Management, China’s total capital outflow was estimated at US$166 billion in 2017, down 78% from US$761 billion in 2015 and 67% from US$500 billion in 2016 as a result of the new regulations.</p>
<p>China’s initial tightening of capital outflow rules in 2016 followed a fall of nearly 7% in the value of the yuan against the USD which had been the largest depreciation since 1994.</p>
<p>The foreign exchange turnaround, he said, had seen the yuan appreciate 10.4% against the USD over the 12 months to December.  </p>
<p>But more importantly if we look at the movement over the last two months from December when  1 USD bought 6.62 yuan and then last week when 1 USD bought 6.29 yuan we see an appreciation of 5.2% in just six weeks.</p>
<p>That is a huge appreciation of the yuan on top of the significant rise over the last 12 months, and, if it continues, then it must be troubling for at least some sectors of the Chinese manufacturing industry which of course is a hugely significant contributor to capital inflow.</p>
<p>The sheer weight of Chinese capital seeking offshore property investment remains very significant with Australia still the number two destination in the world behind the US for Chinese investors.</p>
<p dir="ltr">We need to keep in mind that while investment outflows from China have been curbed, Chinese investors are adjusting to the new rules and fine tuning their investment strategies.</p>
<p dir="ltr">To date in the new year we have seen little change in interest from Chinese investors, if anything, what may have restricted sales volumes, has been as much about the lack of quality stock in increasingly tightly held markets.</p>
<p dir="ltr">That has been particularly the case in the retail sector, while falling vacancy and incentive levels have been very encouraging for office market landlords.</p>
<p dir="ltr">A further factor driving continued Chinese investor interest in Australian property were regulations aimed at curbing Chinese domestic real estate activity in restricting developers’ ability to raise finance for their projects.</p>
<p dir="ltr">On the one hand we have the regulations restricting developers from seeking off-shore opportunities and on the other hand also being restricted in their activities at home.</p>
<p dir="ltr">It is a difficult time for property developers on the domestic front, who, under the centralised banking system, already face limited options for funding new projects.</p>
<p dir="ltr">It is not inconceivable then that the further restrictions on their ability to raise finance through debt and equity, may have them looking offshore where finance for their projects may prove easier to come by.</p>
<p dir="ltr"><em><strong>Mark Wizel</strong> is a Melbourne-based CBRE national director.</em></p>
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mwizel-Mt6xbQordU

The factors driving continued Chinese investor interest in Australian property: Mark Wizel

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<p>One-third of Australian residential development site in 2017 were purchased by Chinese investors and developers, equating to AUD$2.02 billion of site sales, according to Knight Frank.</p>
<p>Their report, Chinese Developers in Australia – Market Insight 2018 found Chinese developers continued to dominate foreign investment in residential development sites across Australia.</p>
<p>"Many are now well-established in the local market," Knight Frank’s head of residential research, Australia Michelle Ciesielski said.</p>
<p>The share of sales to Chinese buyers has tripled since 2013, but decreased from the 38 per cent recorded in 2016.” (See Figure 1)</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/14/FIGURE1.jpg" alt=""></p>
<p>“Sustained developer interest in the Australian market has come in spite of government efforts in both Australia and China to tighten credit conditions as they relate to residential investment and development.</p>
<p>“In Australia, the Australian Prudential Regulatory Authority (APRA) has encouraged local financial institutions to impose stricter controls, while in China the government has attempted to moderate capital outflow with China’s Central Bank imposing new rules for companies which make yuan-denominated loans to overseas entities.</p>
<p>“However, in mid-2017, this was relaxed somewhat – resulting in a boost to market confidence.” said Ms Ciesielski. </p>
<p>According to the report Victoria recorded the sale of 38.7 per cent of residential sites to Chinese buyers – the highest share of all states. </p>
<p>Ms Ciesielski said many developers consider that Melbourne offers better relative value when compared to Sydney. New South Wales and Queensland followed, with Chinese buyers comprising 35.6% and 7.4% of their state’s total volumes, respectively.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/14/FIGURE3.jpg" alt=""></p>
<p>Knight Frank’s Head of Asian Markets, Australia Dominic Ong said as Chinese developers gain experience in higher-density projects across the major cities, there has been diversification in many of their portfolios to include medium and lower-density sites.</p>
<p>“These lower-density projects have also become more popular with local developers – especially in NSW with the draft Medium Density Design Guide being released, identifying the ‘missing middle’ to encourage more low-rise, medium-density housing to be built.</p>
<p>“This type of project also tends to have less hurdles with the imposed tighter lending restrictions, and overall, lowers the delivery risk to the developer,” said Mr Ong.</p>
<p>The report found that residential development sites purchased by Chinese developers and investors in 2017 had an average site area of 21,785 square metres.</p>
<p>Of all Australian development sites purchased by Chinese developers and investors, 29 per cent were suited to low density (single dwellings or landed properties) – up from two per cent in 2013.</p>
<p> </p>
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One-third of Australian development site sales in 2017 to Chinese

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<p>Just one month ago, the investment bank Credit Suisse, advised the Sydney housing market looked set to be stronger for longer, as Chinese buyer demand defied a clampdown on capital outflows.</p>
<p>“There is little evidence that new capital controls by the Chinese authorities, announced in December 2016, have slowed demand for Aussie housing,” its analysts wrote.</p>
<p class="selectionShareable">“We think the tailwind of Chinese wealth creation will mean more, not less, foreign buying of Aussie housing.”</p>
<p>Now the investment bank advises they have detected a sudden withdrawal of Chinese investors from the Australian property market.</p>
<p>They forecast Sydney price growth to stall given Chinese buyers appear to have gone cold. </p>
<p class="selectionShareable">I guess we are all intriguingly learning how the Chinese phenomenon plays out - not just the analysts contradicting each other from the same investment bank.</p>
<p>The latest research by Credit Suisse's economics and equity teams spotted a tight correlation between Chinese capital flows and Sydney housing prices.</p>
<p>Movements typically impacted on local property demand around 12 months on from events occurring in China.</p>
<p>Credit Suisse advised over the past year, Chinese capital flows have fallen considerably, in part reflecting the impact of stricter capital controls in China.</p>
<p>"This fall foreshadows weakness in NSW housing demand in the year ahead," they suggested adding the Sydney housing market had already cooled over the past few months.</p>
<p>It noted revised auction clearance rates — accounting for the many late reported results — had now dipped below 60 per cent in Sydney.</p>
<p>"This is a significant development because recent RBA analysis suggests that a 60 per cent clearance rate is typically the break-even point for house price inflation," Credit Suisse noted.</p>
<p>"House prices tend to fall when the clearance rate is below 60 per cent."</p>
<p>Credit Suisse suggested Chinese buyers have previously driven up valuations in expensive Sydney suburbs and apartment blocks with this then having a spill-over effect for higher pricing in other suburbs and segments of the market.</p>
<p>"We believe that Chinese buyers spark the cycle, while local investors chase the momentum," Credit Suisse said.</p>
<p>Credit Suisse even suggested the Reserve Bank of Australia might be forced to cut rates again, as without a healthy housing market, our economy has few other growth drivers to rely on.</p>
<p>It acknowledged the central bank was in a difficult position because of lack of timely, accurate data about Chinese capital flows and their impact.</p>
<div id="story-description">
<p class="selectionShareable">But recent data on the Brisbane apartment market suggest it is facing an emerging challenge with one in five foreign buyers failing to settle on their off the plan purchases.</p>
<p class="selectionShareable">According to rival investment bank UBS, unlike Brisbane, Sydney's strong residential price growth over the past two to three years ago is ensuring a strong incentive for the foreign buyer to settle.</p>
</div>
<p class="selectionShareable">UBS say they will be watching to understand how foreign buyers react in Sydney over the months ahead.</p>
<p class="selectionShareable">It advised Brisbane resale prices are 10 per cent or more below purchase price and bank valuations are frequently below the off the plan purchase price especially on poor quality projects.</p>
<p class="selectionShareable">Sydney is not immune from poor quality projects or softening prices. </p>
<p class="selectionShareable">This story first appeared in the Daily Telegraph.</p>
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Credit Suisse casts doubt on continued Chinese property buying in Australia

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<p>The sudden withdrawal of Chinese investors from the property market may lead the Reserve Bank to cut interest rates, according to investment bank Credit Suisse.</p>
<p>Research conducted by Credit Suisse's economics and equity teams found Chinese capital flows are tightly correlated to Sydney housing prices, with movements typically impacting property demand around 12 months on.</p>
<p>"Over the past few months, the Sydney housing market has not only cooled down, but has arguably turned cold," Credit Suisse advised, without giving any indication when the mooted cut would come.</p>
<p>"Over the past year, Chinese capital flows have fallen considerably, in part reflecting the impact of stricter capital controls.</p>
<p>"This fall foreshadows weakness in NSW housing demand in the year ahead."</p>
<p>It noted revised auction clearance rates — accounting for the many late reported results — had now dipped below 60 per cent in Sydney, the ABC noted.</p>
<p>"This is a significant development because recent RBA analysis suggests that a 60 per cent clearance rate is typically the break-even point for house price inflation," Credit Suisse noted.</p>
<p>"In other words, house prices tend to fall when the clearance rate is below 60 per cent."</p>
<p>While it is difficult to pin-point the exact impact Chinese buyers have on price, Credit Suisse said its modelling found that Chinese capital flows and real interest rates predict roughly three-quarters of the variation in NSW property transfers since 2010.</p>
<p>Credit Suisse reported the relationship between mortgage availability and auction clearance rates had broken down.<br>"Mortgage availability has plummeted to levels historically consistent with a collapse in clearance rates to around 20 per cent — yet actual clearance rates have remained elevated at 60-80per cent," Credit Suisse said.</p>
<p>Anecdotal evidence suggest there is significantly lower online interest for Australian property coming from China.</p>
<p>"The failure of local variables to explain the housing cycle suggests that there must be a strong foreign component to demand," Credit Suisse concluded given Chinese buyers have previously driven up valuations in certain areas such as expensive suburbs and apartment blocks.</p>
<p>"But this has positive spill-over effects for pricing in other segments of the market. We believe that Chinese buyers spark the cycle, while local investors chase the momentum," Credit Suisse said.</p>
<p>Credit Suisse said the Reserve Bank was in a difficult position because of lack of timely, accurate data about Chinese capital flows.</p>
<p>But the drying up of offshore investment was "a very big risk" to the economy.</p>
<p>"We understand that policy needs to be set on what is known, rather than what is unknown, and Chinese capital flows are a very big unknown because of the absence of high-quality and timely data," it said.</p>
<p>"But the issue for us is that the recent shift down in Chinese capital flows is having a visible, negative impact on house prices and consumer spending now."</p>
<p>Credit Suisse argued if its model was anything to go by, it is hard to see a meaningful recovery any time soon.</p>
<p>"We believe that the RBA will need to cut rates further to deal with the housing market slowdown in train," it noted.</p>
<p>"Without a healthy housing market, the economy does not have other growth drivers to lean on."</p>
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Chinese buying in Sydney has gone cold which could prompt RBA to cut: Credit Suisse

<html><body><div class="cq-article-content-paras section">
<p>Foreign buyers, mostly Chinese, are buying a quarter of new housing supply in NSW, with Credit Suisse forecasting a "stronger-for-longer" scenario for the housing sector.</p>
<p>After analysing foreign buyer receipts, the trend is also strong in Victoria, with foreign buyers accounting for the purchase of 17 per cent of new housing. In Queensland, it is 8 per cent.</p>
<p>"Almost 90 per cent of foreign demand is from China and there is little evidence that new capital controls by the Chinese authorities, announced in December 2016, have slowed demand for Aussie housing," the analysts, Hasan Tevfik and Peter Liu advised.</p>
<div class="cq-article-content-paras section">
<p>"We think the tailwind of Chinese wealth creation will mean more, not less, foreign buying of Aussie housing.</p>
</div>
<div class="cq-article-content-paras section">
<p>"Chinese demand suggests we ought to remain skeptical of a collapse," they wrote.</p>
<p>"Residential exposed companies should benefit including the developers, building material companies and banks."</p>
<p>Using Freedom of Information requests the Credit Suisse report collates tax receipts collected by the state revenue offices in the three east coast states in 2016-17 financial year.</p>
</div>
<div class="cq-article-content-paras section">
<p>It found foreign buyers bought $5.9 billion in residential property in NSW, along with $3.4 billion in Victoria and $700 million in Queensland.</p>
<p>While the housing market, is worth $5.6 trillion in the three east coast states, the report notes, it represents a large proportion of the value of new housing supply.</p>
<p>From July 1 this year, NSW doubled the stamp duty on foreign buyers to 8 percent and increased the land tax surcharge from 0.75 per cent to 2 per cent.</p>
<p>Victoria and Queensland impose taxes on foreign buyers of residential property of 7 percent and 3 percent, respectively.</p>
<p>On the question of whether the recent increases in tax will be enough to reconsider and cause house prices in Sydney to decline, Credit Suisse advised international experience suggests not," the Credit Suisse analysts wrote.</p>
</div>
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Chinese new housing purchasing to ensure Sydney and Melbourne markets remaining stronger for longer

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<div class="cq-article-content-paras section">
<p>Apartment settlements to Chinese off-the-plan buyers are holding up in the Melbourne CBD, according to the construction financier MaxCap.</p>
<p>The <span>off-the-plan</span> sales in the north-western Elizabeth Street precinct showed little sign of settlement difficulties, said MaxCap chief investment officer Brae Sokolski.</p>
<p>He cited figures for four projects which were almost fully pre-sold.</p>
<p>He noted 65 per cent of apartments settled within the first two weeks of settlements, with the remainder of stock settling over four to six weeks with minimal evidence of default.</p>
<p>At least half of the buyers were foreigners who required Foreign Investment Review Board approval to buy.</p>
</div>
<div class="cq-article-content-paras section">
<p>"In the most trying environment for settlements, they are still proving incredibly resilient," Sokolski told Fairfax Media.</p>
<p>"The buyers from offshore are finding a way to ensure that they settle and they have investment in Australian real estate."</p>
</div>
<div class="related-quotes section">He suggested these buyers were the ones with notionally the highest possible risk.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"They bought when the market was very different in terms of their ability to access equity from China or debt from Australia.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"The fact that they are settling when they were caught unawares augers very well for the future of the industry and the settlements moving forward."</div>
<div class="cq-article-content-paras section">
<p>The four projects were Golden Age's Victoria One (160 stage-one units out of a planned total 643 apartments), <a href="https://www.hengyi.com.au/category/news/light-house/" target="_blank">Hengyi's Light House</a> (627 apartments), ICD Property's EQ Tower (633 apartments) and Mammoth Empire's Empire Melbourne (487 apartments).</p>
<p>At Light House, 98 per cent of all apartments had settled successfully within 60 days of calling for settlements, Sokolski said. They took place in July this year.</p>
</div>
<div class="cq-article-content-media section">Sokolski said a random sample review of title searches showed that about 58 per cent of the apartments purchased across the four projects were funded by cash, while 33 per cent was through major Australian banks or lenders, and a further 9 per cent through alternate or overseas lenders.</div>
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Light House signals Chinese buyers showing few signs of Melbourne apartment defaults

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<p>Claims that local developers have left the Chinese market due to a lack of appetite is untrue, according to the founder of off-the-plan property marketplace Investorist.</p>
<p>"The idea that the market in China for Australian projects is over is not just an exaggeration, it's just plain wrong," Jon Ellis, managing director of Investorist, told The Australian Financial Review. </p>
<p>His website connects developers with selling agents and currently lists about 215 mainly East Coast projects.</p>
<p>He contradicted an earlier claim by Scott Kirchner, a Shanghai-based director of real estate group Beller, in the AFR that Australian developers were not up in China pushing projects and that "Chinese agents have no appetite for Australian property".</p>
<p>An earlier report by Investorist also said that Australia remained the first choice for Chinese property investors, who are undeterred by regulatory changes or global events when it comes to buying property overseas and the trend is likely to continue in 2017.</p>
<p>While Ellis did say that demand from China was down about 40 per cent on a year ago, developers were still going to China to promote their developments and achieving sales.</p>
<p>"We recently achieved 24 sales for a Melbourne Docklands developer. If you have a decent product and are willing to persevere and have a sustained presence in China you will continue to make sales and heaps of them." </p>
<p>He is taking six Australian developers, including Mirvac and real estate agents McGrath, to Investorist's next China Connection roadshow, which starts on Sunday, having taken five to the last event.</p>
<p>He said the roadshow in the cities of Guangzhou, Shenzhen and Shanghai are platforms for developers to pitch projects to Chinese estate agents.</p>
<p>"We do these roadshows based on demand from Chinese estate agents," said Ellis. "There is still the same level of demand. We have sold out each of our events within three weeks."</p>
<p>At educational seminars held in China, Investorist hosted representatives from 160 companies selling international property, and about 40 per cent expressed strong interest in continuing to buy Australian properties.</p>
<p>"A similar story emerges from our regular China Connection events; approximately half of the Chinese agents attending are there to meet Australian developers. The Chinese agents are attending because Australian property is what their clients are asking for," he said.</p>
<p>While demand from China was down, he said some of this shortfall had been taken up by increasing demand from local selling agents and channels.</p>
<p>"Across the board demand for off-the-plan properties is down about 25 to 30 per cent," he said. </p>
<p>Ellis said this was due to changes to stamp duty rules that have removed concessions to investors buying off the plan in Victoria and tightening of lending by banks.</p>
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