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

Joel Robinson

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

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

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Foreign Buyers

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Longueville has a new record price after the riverfront home of Matilda Cruises founder Tim Lloyd sold pre-auction for around $7.6 million.
The 1,182 square metre property <a href="https://www.mcgrath.com.au/buy/house-longueville-nsw-2066/226833/?searchID=42076578" target="_blank">had initial $6.5 million-plus price guidance</a>. It boasts a private beach, boatshed and slipway on the Lane Cove River.
The previous suburb high was $7.4 million for a Poole Street 3,604 square metre riverfront reserve holding in 2005.
Longueville's non-waterfront record also hit a new high recently when another Chinese buyer bought on Arabella Street for around $7.25 million.
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jchancellor-FAypfDUnLy

Chinese buyers set Longueville records on and off the riverfront

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Swann House at 22 William Street, Melbourne, has been sold by Kliger Wood Real Estate for $21.6 million.
Chinese interests secured the property after 140 plus enquiries were received from Asian, Middle Eastern and local investors.
Kliger Wood director Eugene Wood says the purchaser was a Chinese group with other recently acquired holdings in the Melbourne CBD.
The 10 level commercial office building on the corner of William Street and Flinders Lane has a gross building area of 7,000 square metre with a net building area of 5,700 square metre.
The building, which is about 90% leased at present to show a net income of $1,328,000, was marketed with potential hotel or residential conversion.
Eugene Wood gave no indication on buyer intention.
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Swann House, Melbourne sold for $21.6 million to Chinese buyers

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1B Grong Grong Court, Toorak sold earlier this month after being on the market since late April.
<a href="https://www.realestate.com.au/property-house-vic-toorak-116743255" target="_blank">Paul Ffeiffer and Anthony Grimwade at RT Edgar</a> secured a sale price of $5,188,888 for the three storey trophy home.
"Hopefully bringing luck to the Chinese National Buyer," buyers agency James Buyers Advocates said.
It was marketed as French inspired elegance.
There's a lift from the basement with parking, gymnasium and 2,000 bottle wine cellar up to the top level with the four bedroom, four ensuite home.
The 600 square metre block cost $1.6 million in 2006 when bought by the Dimas family.
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'Lucky' $5,188,888 Toorak sale to Chinese buyer

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GUEST OBSERVATION
Foreign investment is one of Australia’s biggest media issues in residential real estate at the moment. As a professional property buyer, I hear people saying:
<ul>
<li>“Every time I go to an auction, I get beaten by a foreigner.”</li>
<li>“These people can’t have that much money, there must be something illegal happening”</li>
<li>“Why are they winning every single auction?”</li>
</ul>
The ‘elephant in the room’- what we are not comfortable saying - is that when we say foreign, we are talking about the Chinese property buyer. I don’t think people would feel as aggrieved if that buyer was from Italian descent, Lebanese descent…or, even more recently, of Indian descent. It is Chinese buyers people seem to have a problem with. But is there even a problem in the first place? I would like to explore the issue by going straight to the Foreign Investment Review Board (FIRB) website and seeing how they address this from a policy position. The FIRB says:
“It is the government's policy that foreign investment in residential real estate should increase Australia's housing stock. That is, the policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (such as new developments of house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers.”
That’s it. That’s our policy – bottom line. The rules are designed to allow overseas buyers to support the building of residential property in Australia. They aren’t designed to allow overseas purchasers to buy into existing and established Australian property. After all, we already know that Australia has a housing shortage of between 200,000 and 270,000 homes at any given time.
The Foreign Investment ‘No Overview At All’ (Operating in the Dark) Board
A second question is whether the FIRB is able to police its own rules.  In <a href="https://www.smh.com.au/national/bureau-of-statistics-in-dark-on-foreign-investment-in-australian-residential-property-inquiry-hears-20140625-3atlw#ixzz39Z1NYQqZ" target="_blank">a recent article </a>in the Sydney Morning Herald, journalist Gareth Hutchens writes:
“Senior Bureau of Statistics officials have admitted they read trade magazines and newspapers to keep on top of changes in the amount of foreign investment in Australia's residential property, because their collection of such data is too patchy.”
At the same hearing - Paul Mahoney, an ABS assistant statistician, said they actively researched newspapers for information on foreign purchases of residential property, even though they knew the practice was ''a bit hit and miss''. But, in his words; “it had to be done... because the ABS gathered very little data itself”. Really?
Wouldn’t that be like me trying to be a talent scout for the Australian cricket team reading the back page of the local paper to find my next big talent? Efficient? Surely not.
This admission came during this public hearing , where the hearings are being held in response to industry concerns that foreign investors, particularly Chinese, have been sidestepping our laws to buy established property over locals and inflating prices to a stage beyond affordability.
At this same enquiry, Brian Wilson (from the FIRB) said:
“Much of the public controversy about Chinese investors buying up residential real estate was “not necessarily malevolent” but not based on facts”
But how Mr Wilson say this? Clearly he doesn’t have the facts, as the FIRB’s own reporting indicates.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Legitimately Illigitimate?
Personally, I am not against foreigners, or specifically, Chinese buyers, buying established property in Australia. Chinese buyers are buying property in Australia via their local citizens, who may just happen to be relatives, friends and even business colleagues. As a matter of fact I have purchased and assisted in the purchase of many, many legal Australian citizens - some of whom may have raised the funds for their purchase via families and friends overseas. I can’t validate where the money is coming from, but I can say that:
<ol>
<li>As much as this is explained to me, it would be considered rude in Chinese custom to expect to sign an agreement between parties (let say it is a family and friends ‘collectively’ pooling money) that would validate any formal agreement. Trust is an important virtue. </li>
<li>The internal belief within China is that the government is currently addressing corruption and modes of money mobility. Whether rumour or fact – the population that has access to disposable money for investment believe that the opportunity to move money out of China will be more difficult in the future. As such, they are taking advantage of this now – and any ‘premium’ they are seen to be paying for a property can be considered the cost of ‘doing business’. A ‘tax’ even.</li>
</ol>
Having come from an Anglo-Saxon background myself, the fact that Chinese people have an established such trust and understanding with their families back home should be considered a source of strength. Culturally, if I could be provocative, I think that is something we could all learn from. The fact that they decide to build their wealth outside their mother country should be considered a compliment to the value of property in Australia.
In a global economy, where we are prepared to compete on almost every other economic level, including labour, we should not deprive those people (who can afford) it of our land. They are one of our closest neighbours and, in my opinion, it’s inevitable anyway. The problem that I have is that to be told by our powers that be that they are looking into the problem and can’t see a problem. It seems like a great case of them putting their head in the sand. I am not so much concerned about the non-problem, but I am concerned about the lack information obtained by the FIRB. As to the question of local buyers feeling as if they have missed out. If you follow the way a property purchasing ladder works, you’d see that for all the noise created by the emergence of the Chinese buyer – the reality is that the successful Chinese buyer only wins the property by one dollar or $5000 in the case of a property auction. Only a fool would pay more. It could even be true that the next one, two or even three under bidders might have been Chinese bidders too…but, in my experience, this rarely adds more than a few thousand dollars at best and perhaps one or two percent of the property price (at worst). Remember, when someone wins an auction, they only win by a margin ‘just’ higher than the next highest bidder.
It’s called the ‘purchasing pyramid’, with a fundamental base always supporting the underlying value with fewer and fewer buyers bidding prices up, until you have a winner. Take the top dog away, you’ve still got a good price. Believing that Chinese buyers fill the whole pyramid, or at least even the top part of that pyramid, is not only foolish, it’s incorrect. The claim that it is adding 5,10 or 15% to our established property prices just isn’t true and therefore so are claims that it is changing the face (and fundamental price) of our market.
The Chinese Dragon is Here to Stay
It’s true that the Chinese purchaser is aggressive and has a mindset of ‘needing’ to buy into Australian property, but I think this is borne out of their doubts they have in the Chinese regulatory and economic system. For what it’s worth, I don’t think this problem is going backwards. Although, it doesn’t yet add a valid percentage to our property prices, I’d be naive to think that that over time it wouldn’t. As the amount of buyers forming our ‘buying pyramid’ become more significant, the growth this can afford property might be distortive to normal market rules.
I don’t think this foreign investment currently is the problem other people think it is. I am delighted foreign investors are acknowledging the value of our property.
But we should at least have an FIRB awake to the conversation about how it is happening. Firstly, what is the point of the FIRB otherwise? Secondly, what about when it does become a problem.
The method of purchase by the Chinese market is via consortiums. They are the oldest, most unsophisticated and perhaps the most basic consortium that you could ever find - the family. These family ties aren’t the type of ties that can be broken with rules from an institution like the FIRB. My advice to Australia is to get used to it. The Chinese buyer is here to stay. My belief is that they are buying established property and there isn’t a law in the land that can stop it. My opinion is that I wouldn’t want a law that could!
GAVIN MCPHERSON is the CEO of <a href="https://www.oasisproperty.com.au/oasis-buyers/oasis-property-buyers.php" target="_blank">Oasis Property</a> and author of  <a href="https://oasispropertyinvesting.com.au/the-book.aspx" target="_blank">Value Investing in Property: What would Warren Buffet do if he was investing in property in Australia? </a>
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We have a problem with Chinese property buyers (but it's not what you think it is)

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Foreign investors have a role to play in the Australian property market, buying inner city apartments that are needed to accommodate growing populations but shunned by local buyers for their poor investment performance, according to Bill Nikolouzakis, director of real estate advisory firm Nyko Property.
Nikolouzakis said that cultural factors attracted foreign investors to buy inner city apartments as that type of property was viewed as the most desirable investment in Asian cities, such as Jakarta.
“What we have noticed is that most foreign investors want to buy in the CBDs of major cities like Melbourne and Sydney and that’s not that popular with local investors,” Nikolouzakis said.
As populations expand there will be a greater need for residential accommodation in the cities.
Melbourne’s population of 4.35 million at June 2013 is forecast to swell to 7.9 million by 2053, according to Australian Bureau of Statistics projections.
The population has been expanding most rapidly in the inner city areas of Melbourne, which increased by 23%, as well as <a href="/news">Docklands</a> and <a href="/news">Southbank</a>, with 15% population increases, ABS figures show. The population of <a href="/news">Abbotsford </a>in the city’s inner north grew by 20%.
Local investors tend to steer away from inner city apartments, Nikolouzakis said.
“[Inner city apartments] have not been proven to perform. They don’t have the same growth as inner ring suburbs in Melbourne,” he said.
An oversupply of new apartments in Melbourne’s city areas is likely to put pressure on capital values in the short to medium term, Nikolouzakis adds.
“There’s not a lot of money to be made in inner city apartments in the short term. For a 50 year investment strategy that’s a good option but medium term – 10 years – I don’t think they’re going to perform,” he said.
But Nikolouzakis said it’s difficult to convince foreign buyers that properties outside of the main CBDs are good investments. Laws prohibit foreign owners from buying existing properties, which tend to be more popular with local investors.
Nyko Property focuses its research on new Melbourne investment properties, predominantly townhouses and small apartment complexes in suburban Melbourne.
Almost three quarters of its sales in the 2014 financial year were <a href="/guides/financial-services-industry-increasingly-selling-property-smsfs-playing-a-key-role-nyko-property">made are through Australian financial intermediaries such as accountants, financial advisers and mortgage brokers</a>. Its remaining sales were to foreign investors via local and international agents.
The company licensed its business name in Indonesia in March and has given a local agent the right to distribute its properties in Indonesia. It has plans to open offices in Jakarta and Surabaya.
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Foreign buyers are needed to purchase inner city apartments locals think are bad investments: Nyko Property

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A Chinese-owned, South Australian-based company has paid about $15.5 million for the Yaldara Winery, one of the most picturesque and attractive wine tourist destinations in South Australia.
Two senior winemakers will be retained to help retain the quality of vineyard’s ports and sherries during the transition.
The sale is reliant on new owners, 1847 Winery, receiving a liquor licence for the <a href="https://en.wikipedia.org/wiki/Chateau_Yaldara" target="_blank">chateau</a>.
It was founded by the Hermann Thumm in 1947 after he emigrated in 1946.
The Lyndoch location was chosen on the banks of the North Para River at an old flour mill dating back to 1867.
 The winery was named Yaldara after the local aboriginal word meaning "sparkling". After over 50 years ownership Hermann Thumm sold the winery in 1999 to the wine company McGuigan Wines, the latest vendors.
The 1847 company reportedly secured its initial SA operation from the former international businessman, John Curnow, and his wife, Sue. It was at Rowland Flat in the Barossa, with the niche brand 1847 Fine Wines, named after the original survey date of the property.
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The Curnow's pursued the Chinese investor market through the Gaetjens Langley Guangzhou office before its 2011 sale.
Arthur Wang, a resident of Sydney with property interests in both Sydney and Qingdao, struck a deal for the walk in-walk out sale of 1847 <a href="https://www.wineryforsale.com.au/cms/wp-content/uploads/2011/07/Ed-6-Newsletter-July-2011.pdf" target="_blank">which was featured on the cover of Valuer &amp; Broker in mid-2011</a>.
John Curnow family continues to consult to the business. 
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Officially 1847 is owned by Zhitai Wang and Kuifen Wang from Adelaide’s sister city Qingdao, in Shandong province in China.
The McGuigan's will concentrate on building sales in its McGuigan, Tempus Two and Nepenthe brands.
Picture courtesy of <a class="external text" href="https://www.flickr.com/people/30659367@N00" target="_blank" rel="nofollow">Graeme Churchard</a>a/ <a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by/2.0" target="_blank">CC BY 2.0</a>. 
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Chinese snap up Barossa Valley Chateau Yaldara winery

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GUEST OBSERVATION
A large portion of commentary on foreign investment in Australia is based on scant data, as recent submissions to the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/foreigninvestment/index.htm">inquiry</a> into foreign investment in residential property show.
At the moment it seems the only body collecting any data on this sensitive issue is the Foreign Investment Review Board, and that appears limited. Even the Australian Bureau of Statistics and Reserve Bank <a href="https://www.canberratimes.com.au/federal-politics/political-news/abs-has-patchy-figures-on-foreign-investment-in-homes-20140625-3atp4">admitted</a> to the O'Dwyer inquiry its staff rely on trade magazines and newspapers to identify foreign real estate purchases.
The concept of foreign investment
In economics investment means the flow of additions (positive or negative) to a stock of assets, or store of value, over time in the economy. Investment is important because it contributes to the productive capacity of the economy. Residential property investment increases the flow of services from housing.
The term foreign investment is very often loosely used. It includes additions to assets by foreigners, such as internally financed additions or improvement to the assets, or externally through the purchase of new equity. But it also may include transfer of ownership of existing assets from local to foreign, such as through purchase of existing equity. By itself this would leave the stock of assets unchanged.
Prices in transactions are subject to supply and demand. They can vary from increases or improvements to production, through to speculation as in the lead up to the global financial crisis. This is another reason why the measurement of foreign investment may not be able to easily distinguish between additions to assets and the exchange of existing assets. Moreover the foreign exchange transactions which may be used to identify foreign investment do not record the reasons for the transaction.
Many foreign investment transactions involve selling and buying by entities which are themselves a mixture of domestic and foreign ownership. The IMF has rules about the how to categorise the various levels of foreign ownership involved in the transactions. “Direct investment” is that where a resident in one economy has control or a significant degree of influence directly or indirectly in the management of an enterprise resident in another economy. A rule of thumb is more than 10% of the worth of the entity is involved in the transaction.
Data collection needs resources
As in the case of any data, the quality of foreign investment data is only as good as the amount of resources devoted to the collection, and that has been determined historically. There are primarily two sources of data for foreign investment in Australia, the FIRB and the ABS.
The state titles and transfers offices do not record the nationality of parties in property transfers. The addition to cost for improving data collection needs to be weighed up against the benefits of the additional information gained from that data. For national data, this is invariably a political question, not only in determining the total funding or addition for data collection, but also within that the allocation to each area, as indicated in the ABS submission.
The Treasury budget <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2013/PBS%202013-14/Downloads/PDF/02_ABS.ashx">documentation</a> provides no plan to increase ABS resources, nor is the purpose of expenditure identified (except for the Census).
This article continues on the next page. Please click below.
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Property as a special category of foreign investment
The difficulties of recording foreign investment data are widespread - Australia is one of the few countries that produce data of any sort on foreign ownership of land.
In the case of real estate, the stock of assets includes land (and improvements), buildings and other constructed physical structures. A problem for measurement of property as foreign or domestically owned arises because the land itself has to stay on Australia’s national balance sheet as an asset even though it may have a foreign owner. This involves separate valuation of the land. Otherwise the land would appear in the balance sheets as an asset of another country.
The ABS data on real estate cannot be split between foreign and local ownership, nor between commercial and residential. The ABS includes foreign investment in property in purchases of Australian equity in “other business services” which includes legal, accounting, marketing, computing and scientific services, amounting to about A$33 billion in 2013. The data is obtained by survey of the businesses involved.
FIRB data is collected for a different purpose
The ABS also makes use of data from the FIRB on investment intentions by foreign investors outside the Australian corporate structure, estimated at a value of A$24 billion for 2013. The FIRB data are based on applications it receives. It would only include the value of foreign investments where the amounts are greater than the threshold requirement for applications, currently A$248 million for business investment from most other countries. Lower or zero thresholds apply for real estate or for government investors. It is not clear how repeat and unsuccessful applications are accounted for.
Emigrating Australians increase foreign investment assets - by another A$48 billion. Overall foreign holdings of Australian real estate appear to add about 3% to total foreign investment. The RBA estimates that foreign investment is at most 5-10% of dwelling turnover value and half that in volume because the investment is in higher value houses. This leaves the likely proportion of total housing stock which is foreign owned unknown but likely to be very small.
What is needed?
The ABS recommends that if comprehensive data on foreign investment in real estate is a priority, the FIRB and the state offices for transfers and titles could be required to collect the data. The data required, according to the ABS, would include:
<ul>
<li>the market value of property transacted</li>
<li>settlement date</li>
<li>residency of investor</li>
<li>Australian residency status of purchaser</li>
<li>seller residency, and</li>
<li>whether purchaser is a corporation or individual.</li>
</ul>
Whether the foreign investor is a government could be added to the list. While the ABS proposal would need to be costed and the political will to be implemented, it appears to be a sensible suggestion to improve the data in this area.
Margaret McKenzie is lecturer, School of Accounting, Economics and Finance at <a href="https://www.deakin.edu.au/" target="_blank">Deakin University</a><a href="https://theconversation.com/institutions/deakin-university"></a>.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Little hard data in the hard area of foreign investment

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The Ausin Group, which specialises in offering residential and commercial property to the mainland Chinese market, has sold over 1,200 new properties across New South Wales, Victoria, Queensland and New Zealand in the past year.
The annual sales totalled over $800 million with Ausin Group selling over 450 Melbourne properties to Chinese buyers valued at over $260 million within the last three months.
It is now expanding four of its major offices in Sydney, Melbourne, Shanghai and Beijing to meet strong demand from Chinese investors seeking Australian and New Zealand properties.
Ausin Group’s buyers are mostly from Southern China, Beijing and Shanghai.
The company now employs over 300 people across 13 offices in Australia and China, with offices at Shanghai, Beijing, Kunming, Hangzhou, Guangzhou, Nanjing, Ningbo, Chengdu, Shenzhen, Wuxi, Suzhou in China.
Joseph Zaja, general manager of Ausin Group said the demand had been driven by several factors including the Chinese property market being currently soft and "will continue to be so for a number of years".
"Australia is considered a safe property investment haven with solid returns and is a preferred immigration destination. 
"The Australian standard of education, safety and low pollution levels are all appealing to Chinese immigrants seeking a new place to call home.”
Ausin Group expects to double the number of properties the company sells to Chinese investors over the next year.
Ausin Group was established in 2009.
It sells properties for private and ASX listed companies in Australia and New Zealand.
Property sales included a mix of inner city apartments and house and land packages. 
Mr Zaja said sales included inner city apartments within a two kilometre radius from the CBD to residential communities situated between 20 to 40 kilometres from the CBD. 
"<a href="/news">South Yarra</a>, <a href="/news">St Kilda</a> and <a href="/news">Toorak</a> are some of the areas attracting Chinese buyers.”
He said Chinese purchasers in Melbourne were seeking properties which have good infrastructure links, are close to major universities and are easily accessible to the CBD.
Joseph Zaja is a panellist at the upcoming Property Observer webinar on Off the Plan Marketing and Sales Masterclass.
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Ausin expects doubling in mainland Chinese property purchases in Australia

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GUEST OBSERVATION
Lost in the overblown debate about whether Chinese real estate buyers are good or bad for Australia is something more interesting. It's the true story of where Chinese buyers got all their money.
If you are over the age of 30, you grew up thinking of China as destitute. Encouraging me to eat my veggies at dinner time, my mother used to say to me, "Children in China are starving". 
So how is it that China today has so much money that it can afford to invest in Australian real estate?
To answer that, we have to travel back to 1978. China's leader Deng Xiaoping kicked off economic reforms on a bigger scale than anything ever seen in any other country - at least until the Soviet Block collapsed.
Deng had very different priorities than the hard core communists who had gone before. He was a pragmatist who saw economic growth as a way to improve the lives of the Chinese people. 
One of Deng's most famous lines is: "To be rich is glorious". That hardly sounds like Karl Marx. 
The incredible wealth China has today began with the reforms that Deng kicked off. He made economic growth a national crusade and urged his countrymen to become 'socialist entrepreneurs'. 
Many of the wealthy Chinese who invest in premium Australian homes got their start as entrepreneurs in this period. Remember, no matter how much money they have today, just about everyone in China over the age of 35 started off poor.
Here's a typical story. Liu Yongxing is a billionaire today, but was so poor as a young man that his parents had to send one of his brothers to live with another family. They couldn't afford to feed their own son. 
As the economy opened up, Liu scraped enough money together to begin keeping quail and selling the eggs. Then he moved into animal feed. 
Today, Liu is a billionaire who owns 63 companies in the fields of aluminium, power production, agriculture, food, chemicals, natural resources, commercial banking, insurance, and real estate.
Zhang Xin is another beneficiary of Deng's reforms. Now a billioinaire, she turned 18 in 1978, the year the Chinese leader began opening the economy. 
As a teenager, she lived with her mother in a room the size of a closet. To save for an education abroad, Zhang worked for five years in small garment and electronics factories in Hong Kong. 
Once she had saved enough, she moved to London to study English at secretarial school. An amazing career followed, and today she has more money than all but a handful of people in the world.
Successes like Zhang's and Liu's have consistently made China one of the fastest growing economies in the wold. This growth lifted hundreds of millions from extreme poverty. It also inducted tens of millions of them into the ranks of billionaires, millionaires, and the merely well off.
When you understand how much they have accomplished in such a short time, it's hard not to be impressed by the successful Chinese of today. One of the benefits of having these dynamic entrepreneurs invest and do business in Australia is that they often do more than just buy real estate. They also invest their skills and capital into the Australian economy.
Hopefully, this little history lesson has given you a better understanding of how a country that was so recently poor has so quickly gotten rich. 
With future growth rates predicted to hover around 7% or 8% per year, China's massive economy will only become bigger. And, the benefits of their investment in Australian real estate will also continue to grow. 
ANDREW TAYLOR is the Queensland-born co-CEO of <a href="https://juwai.com/" rel="nofollow">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world.
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Why do Chinese buyers have so much money? 

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Approvals for the re-booted significant investor visas have sped up significantly from about 25 a month to 69 a month recently.
In ­Victoria, 684 have been granted, representing a potential investment of up to $3.42 billion. 
More than 100 have been granted in New South Wales in the last year, bringing the state at least $530 million, according to the recent data published in the Australian Financial Review. 
The significant investor program, launched in 2012, gives residence to applicants investing at least $5 million over four years in certain assets, including bonds, a regulated ­managed fund or Australian companies.
In NSW, $300 million has been invested in Waratah bonds, ­providing funding for crucial infrastructure projects.
The Australian government announced it is looking to speed up the four- to six-month process to further applications. 
The invested funds need to remain in Australia for four years.
The applicant is required to spend 160 days in Australia over four years before gaining permanent residency. 
Direct investments in property and exchange-listed companies are not be included in the $5 million but can be expected in addition to this threshold.
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