As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

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The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Joel Robinson

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

Foreign Buyers

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Foreign investors are paying inflated prices for commercial property in Australia as yields are still better than the low interest rates available offshore, a local fund manager says.
Australian Unity head of property, mortgages and capital markets Mark Pratt said foreign buyers were ignoring softness in Australia’s economy, weak business and consumer sentiment and high vacancy rates in commercial property to snap up buildings.
“We have an extraordinary level of cash looking to invest in Australia, domestically and offshore, driven by Australia being seen as a safe haven destination for capital but also, whilst we have historically low interest rates, they are, in a relative sense, higher than most jurisdictions,” Pratt said.
Commercial property in Australia is offering cap rates of 7% to 7.5%, which is considerably higher than the local cash rate of 2.5%, Pratt said. In Asia, where cash rates are even lower, the difference between the returns available and the risk-free rate is even greater, driving demand from offshore.
Some buyers were paying 20% more for buildings that Pratt judged their value to be.
“Private capital is coming in from overseas, it’s here as a holding purpose rather than any underlying fundamentals and that introduces some interesting dynamics into the buying market,” he said.
Pratt said the increased demand from overseas buyers made it difficult for fund managers that had a mandate to invest through varying property cycles to identify assets that offered good value. There were still opportunities in secondary office space and healthcare properties, he added.
It was also making owners who had not been planning to sell their assets consider the possibility.
“If we get a good offer we have to consider whether it’s worth selling even if it’s not in our plan,” Pratt said. “We have to balance [a sale] against the risk in the future. With demand coming in that’s happening more frequently.”
Pratt said AUI was always working to improve the income generated by the properties it owned in its funds but weak tenant demand was limiting the opportunities. 
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Foreign investors paying inflated prices for commercial property: Fund manager

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Australia’s significant investor visa scheme appears caught up in allegations by China’s state broadcaster that the Bank of China had set up a “grey channel” to get rich mainlanders’ cash out of China.
Forbes Magazine and The Australian Financial Review reported China’s state broadcaster, CCTV, accused the bank of assisting money laundering to North America, Australia and some countries in Europe.
Australia’s visa scheme, launched in November 2012, offers wealthy people a permanent residency if they invest more than $5 million in Australia.
However, Chinese nationals are typically limited to transferring just US$50,000 annually out of the country. 
Some Chinese managed to get around controls by owning a trading company based in Hong Kong with the funds transferred from there. One Bank of China branch in Guangdong Province sent about 6 billion renminbi, or about $1 billion, out of the country, according to the CCTV report.
An unnamed Australian official working in China told the AFR the visa scheme would be affected in the short-term by the allegations and any investigation. The CCTV report on money-launder­ing via a scheme called You Huitong, translated as You Uncapped, had footage showing the Australian flag on a Bank of China stand at a busy emigration fair, advertising Australia as an important destination for investors. 
In an investigative report CCTV said Bank of China offered to help clients prepare or even “fake” the required ­documents so they could get money out of China.
But the Bank of China denied CCTV’s allegations issuing a statement saying You Huitong is a legal investment programme permitted under a wider pilot project testing the opening of China’s tight capital account. BOC said CCTV’s story based on the undercover investigation “contain discrepancies with and misunderstanding of the facts.”
The New York Times sinosphere blog has subsequently<a href="https://sinosphere.blogs.nytimes.com/2014/07/10/battle-between-2-state-giants-cctv-and-bank-of-china-unravels/?module=BlogPost-Title&amp;version=Blog%20Main&amp;contentCollection=World&amp;action=Click&amp;pgtype=Blogs&amp;region=Body" target="_blank"> suggested the matter is a battle between two Chinese state giants</a>.
Back in Australia a spokesman for assistant minister for Immigration Michaelia Cash said the government “has robust integrity measures in place to ensure that the SIV programme is not targeted by ­economic fugitives or used for money laundering.”
Recipients must invest $5 million into a qualifying Australian fund for a period of four years, allowing them and their immediate family to receive fast-tracked permanent residency.
By the end of June, around 286 of the special investment visas had been granted with a further 610 applications being processed. Chinese nationals account for around nine out of 10 applicants.
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Australian SIV scheme caught up in possible China crackdown on money laundering

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Foreign residential property investment is arguably the hottest topic in Australian property circles right now.
Whether it is at a BBQ, dinner party, or casual drinks after work, when the topic of ‘house hunting’ or property pops up shortly after the topic of foreign investors gets introduced.
Prime Minister Tony Abbott has declared Australia is ‘open for business’ and this sentiment has certainly extended to foreign investment in our residential property class.
Though foreign national investment in single family homes, apartments, and units has been a common occurrence for years in this country, there has been an undeniable upswell in foreign investor-purchased property in the six months of 2014 thus far.
So is this a good thing or a bad thing?
Though market commentators and economists are divided on whether the influence of large waves of foreign investors are having a positive or negative effect on the residential property market, foreign investor influence is certainly being felt in capital city markets.
However, unlike other commodities and investment classes that foreigners ‘can’ buy into in this country, residential property is a delicate asset class; unlike gold, shares, natural resources, technology, and even commercial/industry property investment, residential property investment has social and societal consequences, not just economic ones.
Positive: Investors bring wealth into Australia
Foreign investors bring new money into Australia, greatly influencing our economy. This investment can return dividends for our wider economy as it stimulates further growth into our cities and potentially a better quality of services.
Negative: Higher foreign investor demand could artificially ramp up prices and drive overall housing unaffordability
Yes, this is cited by most Australians who complain about foreign housing investors. Though many Aussies may form this view based on hearsay and/or a lack of researched opinion, the truth is they may be right. The city of Vancouver in Canada is a perfect case study of this. Canada’s relaxed ‘Immigrant Investor Program’ was introduced back in the 1980s and basically enabled for a wealthy foreign national to ‘buy’ their way into becoming a Canadian national, simply by investing a fairly small ($800,000) loan to the Canadian government. The government would then pay back the investor over a five year period and issue a visa in return.
Many of these people purchased investment property specifically in Vancouver, and then left again. However, the buying frenzy over many years saw Vancouver become one of the least affordable cities to live in in the world; with residential property becoming hugely unaffordable for median-to-above-average Canadian income-earners who lived there. The tap was turned off however, in 2012 when the program was abolished. There are concerns by Australians that a similar approach could happen here. 
Positive: Our construction industry gets a much needed boost
Our construction industry – which collectively and peripherally employs over one million Australians – benefits immensely as new residential estates and apartment buildings are demanded by investors, construction companies are employed to build them, thus creating jobs and stimulating the economy. 
Negative: Money laundering on a global scale?
Though Australia welcomes foreign cash injection into Australia, foreign investor funds into residential property are usually pretty unregulated. With a number of investors simply paying cash outright for developments off the plan, the developer takes the cash on a ‘no questions asked’ basis.
The lack of paper trail means that Australia runs the risk of accepting funds that could be ‘dirty money’. Once word gets out of the ease with which funds can be routed into residential properties, Australia runs a risk of an upswell in corrupt foreign funds entering the country. 
Article continues on the next page. Please click below.
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Positive: City planning ensures that construction projects get approved in highest-demand areas
Several cities such as Sydney have faced residential property undersupply issues in their highest demand suburbs and working nodes for years, and foreign investment could help resolve this. Local council areas will consider medium and high-density planning applications by developers in much-needed areas that may not have been possible had there not been enough foreign investor interest to get the project off the ground. Foreign investment helps to encourage construction of higher density housing in these areas to meet current demand. 
Negative: Not everyone wants to live in a shoebox
It is a good thing that foreign investors are helping to build high-density housing (apartment towers) where they are needed most. In high-demand suburbs not everyone wants to live this way.
Developers can make higher profit margins on towers of this scale, versus, say, single-family homes with yards. As land increasingly becomes the prize commodity, developers are under pressure to effectively fit as many people on to the smallest parcel of land that they are legally allowed to do. However, not everyone wants to live in high-rise apartment buildings. 
Positive: Foreign investor demand in certain areas may result in much-needed rezoning
This rezoning could be in the interest of all; and could help open the floodgates to encourage greater provisions of services in much needed areas; things like improved road works, more schools and hospitals being built, and greater stimulation for small businesses to enter areas where higher population growth has been earmarked for. 
Negative: A more expensive property market can cause house-crowding
Many factors contribute to house and unit median prices increasing – foreign investors are just one of them. However, any contribution to making high-demand property exponentially more expensive for occupants could result in house crowding; or worse, illegal housing facilities being built.
A recent example is the Alexandria, NSW, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-07-02/squatters-rescued-from-massive-fire-in-inner-sydney/5564762" target="_blank">fire that revealed an illegal housing ‘shanty’ facility</a>, which endangered the lives of dozens of people illegally living in squalid conditions. This, in an inner suburb area of Australia’s biggest city.
I’ve <a href="https://www.propertycorrespondent.com.au/overcrowding-properties-happens-stop/" target="_blank" title="Overcrowding In Properties – Why It Happens &amp; How to Stop It">written previously</a> about house and apartment crowding and this trend is only on the up. Beyond the immediate safety problems of cramming, say, 10 people into a two bedroom apartment, are the drain on local services and council facilities.
This is where foreign investors could be contributing to making high-demand properties more expensive from the outset, and for a portion of urban Australians such as students, new arrivals/immigrants, and low-income earners, overcrowding; whilst not an attractive option; may be an option they resort to, if they cannot afford the rent on their own. 
Positive/Negative: How much does our economy and society really benefit from foreign national property investors?
A number of news outlets have reported on foreign investors paying cash for their properties and leaving them untenanted/vacant most of the time. I have not been able to find sources that verify this as being a significant occurance/portion of foreign investors; however, there is risk of this occurring more in the future could grow.
If an investor is not using a local (Australian) bank to finance the purchase; and then leaving the property vacant for much of the year, this is a bad thing both economically and societally. Yes, the property investor may pay their dues in the form of council rates and so on, however, with vacant properties in high-demand areas it does little to ease any supply/demand shortfall currently being faced.
Negative: Councils get greedy for revenue, at the expense of citizen quality of life/services
This one is less a finger pointed at the foreign investor more so than it is the greed of some local councils back home.
As mass-scale property developers, themselves fuelled by the lure of foreign investors with very deep pockets quite willing to pay ‘asking price, and above’ for their giant unit blocks; present their plans for submission to councils; the councils themselves are hard-pressed to say no.
This can result in council areas approving higher housing density than perhaps they have the true infrastructure to actually handle. In other words; the lure of developer revenue is too great, at the expense of quality of life and sense of community for the inhabitants of the area.
Councils do this because they believe that the revenue generated by mass development will be used to provide better services to their area. The problem is, most councils under cook the true cost of these services provisions in the first place, or worse, they re-allocate the funds they receive from the developer somewhere else, before the development is complete.
This then sees a suburb increase enormously in population, without the infrastructure and investment in things like community programs, parks, public transport, and local commerce, provided. <a href="/news">Burwood</a>, NSW, is a good example here.
The Sydney suburb has a very relaxed local government, and is hungry for the foreign-investor-driven high-rise developments to be built there, yet the council is plagued with a backlog of infrastrucutre items it cannot possibly afford.
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cmcevoy-Go82SmsJA9

Increased foreign investment in Australian residential property: The pros and cons

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That the number ‘eight’ is lucky in some peoples’ eyes, particularly when looking at trends around Chinese buyers, has spread like wildfire through the media and through real estate agent companies.
The word for ‘eight’ sounds similar to the words for ‘prosper’ or ‘wealth’, and the more eights in a number, the more lucky that number is. Often, prices will be stated with eights in the dollar value as well. 0, 6, 8 and 9 are said to be the lucky numbers.
There is a rumour being currently passed around online that the August coming up next month is especially important as it contains five Fridays, Saturdays and Sundays - which 'only happens once every 823 years'. The chain goes on to state that it is called “Silver pockets full” by the Chinese and is auspicious. 
This is, of course, a falsehood in terms of the frequency of the month (we last had an August of this nature in 2010), although the legend gains traction online every time a year of this nature appears.
If you’re interested in more information around superstitions and lucky omens, observer Cameron McEvoy wrote this <a href="/expert-insights/very-superstitious-marketing-and-building-property-based-on-superstitions">compelling piece around what constitutes a lucky number – and which ones are steered clear of</a>.
For the purposes of this article, we decided to see just how much this is beginning to permeate into real estate listings. Upon searching through a listings portal it was quickly obvious that ‘Lucky Eight’ is being used by real estate agents to sell properties – in particular, those “lucky enough” to be a number eight.
However, it appears to be taking effect in the prices as well. Jonathan Chancellor previously reported in February this year that a <a href="/expert-insights/investing/happy-chinese-new-year-as-1960s-glen-waverley-house-sells-for-1-100-888-on-lucky-third-attempt">Glen Waverley property sold for $1,100,888 at auction</a> after the agency, Biggin &amp; Scott, had timed the listing for Saturday, 8 February for Chinese New Year.
Here are eight properties currently on the market using Lucky Eight marketing – many of which are coming up for auction in August… the perhaps not-so auspicious eighth month. It's worth noting that there were many others using this marketing technique with a high concentration in Victoria and New South Wales.
 
<ol>
<li>
<a href="https://www.realestate.com.au/property-house-vic-brookfield-117362399%20" target="_blank">8 Magpie Street, Brookfield, Victoria </a> <img src="/images/2014/07/08/brookfiled%20july%208.jpg" alt=""> “Lucky 8's (sic),” the listing begins. “Good fortune waits for the lucky purchaser of this beautiful home.” The three-bedroom, two-bathroom home sits on 800 square metres of north facing land and has a double garage. It’s up for auction on 9 August, at 11am through Stockdale &amp; Leggo – Melton. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-tea+tree+gully-117352847%20" target="_blank">8 Peaceful Place, Tea Tree Gully, South Australia <img src="/images/2014/07/08/tea%20tree%20gullly%20july%208.jpg" alt=""> </a>Asking for $685,000, and having last sold for $625,000 in 2006, according to RP Data, this ad comes straight in with the capitalised “IS "8" YOUR LUCKY NUMBER?” <a href="https://www.realestate.com.au/property-house-sa-tea+tree+gully-117352847%20" target="_blank"></a>The six-bedroom, three-bathroom, three-storey tudor home is circa 1962 and is a gorgeous offering with a spa bath in the main bathroom, a his and hers walk in wardrobe in the main bedroom, a conservatory and a home theatre room. It spans 1,259 square metres and is offered through LJ Hooker – Golden Grove. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-vic-st+albans-117395935" target="_blank">8 Avondale Avenue, St Albans, Victoria <img src="/images/2014/07/08/sta%20labns%20july%208.jpg" alt=""> </a> This three-bedroom, two-bathroom home has the headline “First Time On The Market! Lucky 8!” to attract purchasers. <a href="https://www.realestate.com.au/property-house-vic-st+albans-117395935" target="_blank"></a>On a 660 square metre allotment, it also has a four car garage and each room has a built in wadrobe. It’s being advertised through Raine&amp;Horne St Albans. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-wa-canning+vale-117219251" target="_blank" style="line-height: 1.3em;">8 Saltram Turn, Canning Vale, Western Australia </a><img src="/images/2014/07/08/canning%20vale%20july%208.jpg" alt=""> Asking for offers from $850,000, this “Lucky number 8!” property has the added tagline “Good fortune lies within!” It has four bedrooms and three bathrooms, and is close to local schools and colleges. On 660 square metres, it has four included chandeliers, a theatre room, a two-car garage, solar panels on the roof and a 5,000 litre rainwater tank. It’s said to suit the “distinguished” buyer and is on the market with One Agency Phil Taylor – Maddington. 
</li>
<li>
<a href="https://www.realestate.com.au/property-apartment-vic-carnegie-117224055" target="_blank">2/8 Kokaribb Road, Carnegie, Victoria </a> <img src="/images/2014/07/08/carnegie%20july%208.jpg" alt=""> Up for auction at $380,000 plus, this apartment is on the market with Century 21 Anderson &amp; Co – Carnegie. <a href="https://www.realestate.com.au/property-apartment-vic-carnegie-117224055" target="_blank"></a>The capitalised “LUCKY NUMBER 8” is what stands out from this advertisement, and it comes with two bedrooms, a separate entrance hall, a balcony, built in wardrobes and a lock-up garage. It’s close to train, TAFE and shops. The auction is on 12 July. 
</li>
<li>
<a href="https://www.realestate.com.au/property-townhouse-nsw-lurnea-117322963" target="_blank" style="line-height: 1.3em;">8/31 Calabro Avenue, Lurnea, New South Wales <img src="/images/2014/07/08/lurnea%20july%208%20one.jpg" alt=""> </a>This “Lucky Number 8, Rear of Complex” two-storey townhouse with two bathrooms spans 200 square metres and includes three bedrooms and a study. Listed through Strathfield Partners – Strathfield, there is an entertainers courtyard, and it has beautiful exposed brick features. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-campsie-117133031" target="_blank">8 Gordon Street, Campsie, New South Wales <img src="/images/2014/07/08/campsie%20july%208%20one.jpg" alt=""> </a> This five-bedroom, two-bathroom property on the market with Lytin Real Estate – Campsie jumps straight in to “Lucky Number 8 in Blue Ribbon Location on 668sqm block”. <a href="https://www.realestate.com.au/property-house-nsw-campsie-117133031" target="_blank"></a>Up for auction on 26th, it’s on a 668 square metre block, and they suggest that: “The lucky buyer may consider renovating this spacious home or you could keep it as a premier investment option whilst you make plans to build and further capitalise on this fantastic block and position.” 
</li>
<li>
<a href="https://www.realestate.com.au/property-residential+land-qld-marsden-200803391%20" target="_blank">Lot 8, 19 Sam's Way, Marsden, Queensland <img src="/images/2014/07/08/marsden%20july%208.jpg" alt=""> </a>Now we turn our attention to vacant block of residential land, up for sale for $202,500. <a href="https://www.realestate.com.au/property-residential+land-qld-marsden-200803391%20" target="_blank"></a>“Lot 8 (Lucky For Some) - Build Here!” we’re told by New Image Real Estate – Marsden. The 556 square metre block is in a new estate. “The number 8 in Chinese is to prosper and considered lucky according to the internet. Some people believe this to be true...” the listing continues. 
</li>
<li>
BONUS LISTING (9 is lucky too) <a href="https://www.realestate.com.au/property-house-qld-parkinson-117153927" target="_blank" style="line-height: 1.3em;">(Unnumbered) Parkinson, Queensland </a><img src="/images/2014/07/08/parkinson%20july%208.jpg" alt=""> Up for $568,000 negotiable, the property is advertised as a "Lucky 8 house don't miss out", with the four-bedroom, two-bathroom property sitting on 800 square metres. It's on the market through Prince Realty - Sunnybank.
</li>
</ol>
 
<a href="https://www.realestate.com.au/property-residential+land-qld-marsden-200803391%20" target="_blank"></a>
{module Do you think that the number eight has an effect when advertising property?}
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jduke-EHk3XBmHkn

Eight properties advertised with a “Lucky Eight” hook

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Foreign investment into Australian real estate has attracted more attention than almost any other housing issue in recent times.
Some believe that foreign investors are responsible for rising home prices. Others, like Malcolm Gunning of the Real Estate Institute of New South Wales, claim foreign investors are helping Australia’s economy.
Property Observer asked the experts, "What should be done about property investment from foreign buyers?"
Terry Ryder, Hotspotting.com.au founder<img src="/images/2014/07/02/Terry-Ryder-profile.jpg" alt="" style="float: right;">
Nothing. There is nothing Australia needs to do about foreign investment in Australian real estate.
This is a non-issue. Foreign investment is a minor part of the total property buying landscape and is generally confined to high-rise apartments in the inner-city areas of the major capital cities, plus the Gold Coast.
The claim that they are pricing young Australians out of home ownership is quite ridiculous. Foreign investors (for foreign, read Chinese) are not buying in the same areas as typical first-home buyers. They buy prestige homes and high-rise inner-city apartments.
As I have commented in the past, some people have an issue with foreign investment but only when it comes from Asia. The last time this was an issue was in the 1980s when Japanese investors were active. Until recently, the biggest source of foreign investment in Australian real estate was the United States and no one had a problem with that.
The only step I would like to see taken on foreign property investors is to advise them that, in many cases, they are being sold dud real estate. Many are buying in the over-supplied inner-city markets of Melbourne and are likely to have a bad result. This could have repercussions for the wider market, as rents are likely to fall and prices may follow.
Shane Oliver, AMP Capital chief economist<img src="/images/2014/07/02/shane-oliver-profile.jpg" alt="" style="float: right;">
There’s less of an issue than many think. There probably are issues around it. And it’s right, I think, to look into whether it’s too easy for wealthy foreign investors to buy into our property market, but never live in the property, but never rent it out.
 I think it’s grossly overstated. These things seem to come up every time there’s a surge in property prices, and Australians like to look to rich people or foreign buyers as a cause.
It seems to me that we’re seeing a pretty normal cycle. Prices were low, interest rates are low, people go to the bank to borrow some money, the banks lend them money, they buy houses, prices go up.
If those things hadn’t happened, if we hadn’t seen the normal cycle dynamic and it was all foreign buying or SMSF [Self Managed Super Fund] buying, then I’d be concerned. But prices are picking up in places where there aren’t foreign buyers.
The bulk of Chinese buying is concentrated in particular suburbs. It tends to be in ritzy areas – in Sydney’s it’s the lower north shore and the eastern suburbs.
And they’re not the places where first home buyers are.
I think there’s a case to look at it, to see if it’s too easy. We have arrangements in Australia where we seem to encourage investment in our assets as a way to gain entry to Australia. So we need to see if those lead to a distortion in our property market.
The chief policy focuses to help the property market should be to decentralise our cities and our population, and to make land more freely available for development. 
This article continues on the next page. Please click below.
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Andrew Wilson, Domain Group senior economist, 2UE's The Property Hour expert<img src="/images/2014/07/02/wilson-profile.jpg" alt="" style="float: right;">
Much media attention has been directed recently to the level of foreign buyers of Australian real estate – particularly in regard to the Sydney housing market.
Sydney has experienced decade high prices growth the over the past 12 months as record low interest rates have improved affordability, released pent-up demand and activated investors chasing the re-emergence of capital gains.
The drivers of strong prices growth in Sydney and other capitals to a lesser degree have clearly been local changeover buyers and investors rather than has been suggested in some quarters, activity from foreign buyers, particularly from China.
The foreign investment rules are clear - investment in established residential real estate is restricted to those with some form of residency status and therefore by definition not foreigners. Foreigner investors may only buy new property or property that must be redeveloped as new within strict guidelines.
Foreign investment in new residential real estate however is a positive as it adds to the stock of housing which is a benefit in particular for the Sydney market where relatively high prices are a product of an underlying shortage of housing. And temporary resident students who purchase residential real estate add to local economic activity directly through the payment of tuition fees and indirectly as consumers.
Latest FIRB statistics reveal the small scale of foreign investment in Australian residential real estate with 11,668 transactions over the 2012-13 financial year which accounted for just 2.7 percent of total sales over that period.
Andrew Taylor, Juwai.com co-chief executive<img src="/images/2014/07/02/andrew-taylor-profile.jpg" alt="" style="float: right;">
I think the debate about foreign investors is really misplaced anxiety about insufficient supply. I met a woman recently. She was Australian born, of Chinese descent. She told me that when she was property hunting, she got nasty looks at auctions from other buyers. Is that the kind of Australia we want to live in?     Here are the three facts that matter. First, the RBA says that foreign investment creates new housing supply for Australians, by making new construction possible. In a market that has long been starved by a housing shortage, that’s great news. It suggests if we are really worried about affordability, Australia needs more foreign investment, not less.    The second fact is that foreign investment in Australian real estate is actually plummeting. It fell by 18% between 2011 and 2013. That's according to the government's own statistics. What’s wrong with Australia that would cause almost one fifth of foreign investment dollars to abandon the country?
American, Singaporean and British investors all cut their investment by half or more. Among the top overseas investors, only the Chinese have not abandoned Australia. Without the Chinese, foreign investment in Australian property would be lower, supply would be lower and prices would be higher.    So, what should be done about foreign investors? We should welcome them into our country because they make more housing available and thus hold down prices for first home buyers.
This article continues on the next page.
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The following is Patrick Bright's submission to the senate enquiry into foreign investment.
<img src="/images/2014/07/02/Patrick-Bright-porfifle.jpg" alt="" style="float: right;">Patrick Bright, EPS Property Search Director
I own a Sydney based real estate buyer’s agency, which has been operating since 2001. Over the last 13 years I have represented hundreds of clients and purchased more than $500 million worth of property for home buyers and investors.
As an Australian citizen I am greatly concerned about the current FIRB policy.
It allows foreigners to purchase:
• up to 100% of a new development that has FIRB approval;
• as many new properties as they like;
• established housing with few restrictions.
The question must be asked as to why the government has a policy in place that effectively imports additional pressure onto our housing market when the Housing Industry Association statistics consistently show that Australia has an undersupply of housing to meet the current demand which is already contributing to strong price rises.
The two main concerns I have with the current policy are that it's inflationary and that it will create a generation of renters which will result in other knock on social issues down the track.
There is no doubt that under the current arrangement we are seeing prices being pushed up higher and faster than they otherwise would be without foreign buyers thereby creating an inflationary effect; this is particularly evident in my home town of Sydney however statistics clearly show it’s happening in other states as well. Over the past decade, in particular since 2008 when the FIRB laws were changed to their current state, I have experienced increasing competition as a result of foreign buyers in the real estate market when buying established property.
The National Australia Bank Quarterly <a href="https://business.nab.com.au/quarterly-australian-residential-property-survey-q1-%202014-6136/" target="_blank">Australian Residential Property survey</a> statistics on foreign investment clearly correlate with my experiences with results consistently showing an increase in foreign investment. The latest quarterly survey released in April this year found “A big pick up in foreign buying activity was noted in the market for new property (especially in Queensland) and for established housing (especially in NSW). In terms of total demand, foreign buyers now account for just over 1 in 7 new properties and around 1 in 10 established homes.”
As a nation we have prided ourselves on giving all Australians a fair go. In contrast this current situation is pricing many would be Australian home buyers and investors seeking to secure their future out of the market. It is forcing many to rent now who would otherwise like to purchase and I strongly believe this has already started to increase the percentage of generation X and Y who will never buy a property diminishing for many the great Australian dream of owning their own home.
The flow on effects of the current policy must also be examined as we are likely to see a larger percentage of these generations become far more financially dependent on the government come retirement having not established the financial security of buying and paying off their own home.
Financial modelling for self funded retirees or retirees who need to rely on the age pension has the assumption that they have paid off their home. If they are still renting then it's likely they will require an additional million dollars in super or other investments (be that cash, shares or property) to fund their rental costs, for the rest of their lives. If they don't then it’s highly likely they will be dependent on some form of government housing or additional government financial support to pay their rent.
It's well understood that once families are dependent on welfare it often becomes generational. Clearly more people being dependent on Government financial support is not in Australia's short or long term interest.
My recommendations for adjustments to the policy are that:
<ol>
<li>
The percentage of property allowed to be sold to foreigners must be reduced to a less inflationary level of under 10% for each individual new development
</li>
<li>
Limits need to be put in place as to how many properties any given individual foreigner or corporations that are controlled by or have common foreign shareholders can purchase.
</li>
<li>
Remove the ability for foreigners to be able to purchase established property as this does not add to the housing market or boost the construction industry in any way, it just increases competition for Australian citizens and permanent residents.
</li>
</ol>
These improvements would still allow for some degree of foreign investment. It would also give Australian citizens who just can’t compete with wealthy foreigners the opportunity they deserve to enter the Australian property market as a home buyer or as an investor seeking to secure their own financial future so they will be less dependent on government when they retire.
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jrichardson-uRX5hFdKfN

Exclusive: What should be done about foreign investment in Australian real estate?

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A little while ago ago I wrote an article about cultural superstitious beliefs and how these may attract or deter would-be buyers to or from a prospective property.
However, in the year since I wrote about <a href="/expert-insights/investing/can-a-propertys-turbulent-history-affect-its-market-price-cameron-mcevoy">superstition from the buyer’s perspective</a>, I’ve observed the quiet emergence of what I consider to be a fascinating phenomenon: the actual marketing of property based on superstitious beliefs.
Though they may carry no superstitious beliefs themselves, choice of property based on superstitious factors may help or hinder the future sale of your investment within some segments of the buying market.
But first, allow me to expand on ‘superstition’ and its relationship with property buying.
People all over the world and from all kinds of background, walks of life, and religious and non-religious belief structures, develop and practice superstitious belief systems. These may relate to notions of light and dark, numerology and numbers, death and birth, and physical space belief systems such as feng shui.
So what does this have to do with property?
Well, some cultures around the world take superstition in their life a lot more seriously than others and the seriousness of this consideration can – and definitely does – extend to property purchase choices.
In western cultures such as Australia, the UK, and much of North America, superstition has an arguably minor impact on the ability to market a property. For instance, there is no evidence to indicate that properties with the number seven (lucky in western culture) and ones that have the number 13 (unlucky) sell for more and/or less than any other numbered property in that market.
However, in many Asian cultures, particularly China, Malaysia, Korea, and Singapore, numerology is serious business. The number eight, and long numbers with lots of eights in them, along with number combinations that form eight (e.g. 71, where 7 + 1 = 8), are extremely lucky. Conversely, the number four and numbers that form the number four are considered to be the unluckiest (due to the sound of the word for four, sounding very similar to the word for death).
Click <a href="https://en.wikipedia.org/wiki/Numbers_in_Chinese_culture" target="_blank" title="Numbers in Chinese culture">here</a> for a Wikipedia page that details the number-based beliefs practiced by millions of people throughout Asia.
There are other superstitious factors beyond just numerology that would-be buyers – along with your possible future tenants – may find unappealing and result in them striking your property off their hit list.
Deceased estates (most have no problem with this, yet other cultures find this a major deterrent due to the belief that recent death draws bad luck), Feng Shui and property design/composition, and even colour schemes of properties, may be enough to secure or deter prospective buyers and renters.
It should come as no surprise then that with the rise of foreign buyers in many Australian cities and suburbs emphasis on some of these factors increasingly being made. Yes, there are many buyers from Asia who are attracted to Australian property; many of them originating from China. And yes, this lucrative market is absolutely being marketed to, in a way that is specific to them.
In a similar way that ‘blue collar’ beer brands such as VB and Tooheys New are marketed towards say NRL football fans in lower-medium socio-economic areas, based on their perceived likelihood to be both an NRL fan and have an affinity for these modestly priced beer products; Asian property buyers are being marketed to, specifically in a way that will pique their attention quickly.
But not only are properties being marketed to superstitious buyers to make them more attractive, they are also being built in such a way to attract them too.
A good example is a new high-rise residential tower development in Sydney’s prestigious Eastern Suburbs. Here, the entire tower will not have any numbered floors that have the numeral ‘4’ in them. So, it is being built without a fourth, 14th, 24th, 34th, and any 40th – 49th floor numbers. This strategy clearly goes beyond just marketing to a niche buying group; but to actually creating new property catering specifically to this group – that being the superstitious foreign investor.
I was perusing some property listings on an app on my smartphone the other day, and also came across this curious entry below:
 <img class="aligncenter wp-image-678" src="https://www.propertycorrespondent.com.au/wp-content/uploads/2014/06/2014-07-03-Marketing-and-Building-Property-Based-on-Superstition-A.jpg" alt="2014-07-03 Marketing and Building Property Based on Superstition A" width="346" height="477">
See the fourth property down the list, priced at $659,888? There is no logical reason to price a property ending in ‘$888’. Instead, this pricing strategy is clearly aimed at attracting the superstitious Asian community and possibly foreign investors who access this app and are superstitiously minded.
Then there is the new mega-tower to be built in Melbourne’s CBD, Australia 108. Even though the tower will actually now only have 100 floors and not 108, the ‘108’ name will stay. In this recent <a href="https://smh.domain.com.au/real-estate-news/construction-on-southbank-megatower-to-start-2015-20140626-zsmtm" title="Construction on Southbank mega-tower to start 2015">article</a> it is mentioned that: "Architect Nonda Katsalidis said the project will be marketed toward foreign buyers. 'That’s the reality. Malaysians, Singaporeans, Chinese.'"
It will be interesting to see how this trend continues into the future. Will properties continue to be aggressively marketed (and indeed built), towards and based on the superstitious customs and beliefs of specific cultural groups?
The good news is this; if you’re like me and superstition doesn’t faze you one bit, fear not, you are not alone. The vast majority of would be property buyers and renters place little to zero value in any superstition-based choice making.
So, whilst it is smart to be aware of trends in property positioning to the market, the best thing an investor can do is buy property based upon the simple investment fundamentals and not any superstitious beliefs.
Investing based on time-proven, data-driven fundamentals consistently beats and disproves lucky numbers, any day of the week.
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Very superstitious: Marketing and building property based on superstitions

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Perth is not actually a mine site, and it’s time to shift the thinking of “Asian investors and prospective immigrants” who overlook the capital as a result, according to RE/MAX WA managing director Geoff Baldwin.
Baldwin said that because of the continual talk of Perth being a mining and resources centre, rather than a beautiful evolving city, it seems some are taking it literally.
“In recent talks with an expert Asian immigration advisor about how Perth is seen in the eyes of many in China we were informed that many Chinese picture Perth itself as the centre of actual mining and associated industries and that this is a barrier to investment and immigration,” Baldwin said.
“Because we live here we assume that people in other countries know that it is only the headquarters of mining companies that are located in Perth itself and not the actual operations of those companies, but unfortunately that is often not the actual perception.”
He said that where Melbourne and Sydney are accepted automatically as large convention cities worthy of investment, “we have found that it is not until the prospective overseas buyer does some research or arrives and sees our city for themselves that they recognise it is not a mine site”.
“In recent years Perth has been widely promoted as the mining and resource capital of Australia however we must consider that it is easy for this to be interpreted literally and for it to give a completely opposite picture to the reality,” he said.
“Actual knowledge of Perth is scant in many Asian countries so it is important that it is promoted more widely and with more detail about it’s beauty, scope and lifestyle if we are going to compete with the more accepted eastern states capitals.”
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Asian investors getting the wrong idea about Perth: RE/MAX WA

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The iconic Bowral tourism property, Milton Park, has been sold to Chinese property interests.
The initial sale, including the business, was speculated at around $20 million.
The 11 hectare land transfer came in at $13 million, to Yufan Australia Pty Ltd, a company directed by Jianjun Yu and Guangxun Fan.
It last traded in 1998 when Aman Resorts supremo Adrian Zecha sold it to the Dobler family.
Milton Park, the Edwardian-style 1910 guesthouse in amazing gardens, has been internationally acclaimed. The Relais et Chateaux Group once accredited it as one of the top 50 country guesthouses in the world.
<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/2014/06/27/milton%20park_0001_2.jpg.jpg" alt="">
The sale of the <a href="https://www.milton-park.com.au/" target="_blank">Milton House country house hotel and spa </a>represents the beginning of another new era for the property, although it is understood the existing Dobler family management will continue, complicating the sale price.
The Dobler family have retained substantial neighbouring holdings.
The Hordern family, of retailing renown, established Milton Park near Bowral in 1910 as their large private pastoral holding.
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The residence, built in the style of a Federation homestead, now has 60 deluxe suites and rooms on the 20 acre estate.
The Dobler's had operated the Kirkton Park Country House Hotel before their late 1990s acquisition.
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Bowral's Milton Park sale confirmed to Chinese buyer

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A Melbourne-based CBD building has been on the market for just 12 hours before being purchased for $5.4 million, or 4.29% yield, by a China-based family. This equates to $18,500 per square metre.
The property, at 355 to 357 Exhibition Street, is a three-level 880 square metre building. It includes ground floor retail and four upper level apartments. The site itself is 291 square metres and is diagonally opposite Carlton Gardens.
The property was sold fully-leased to six tenants, and includes a mix of retail and residential renters. Most are on short-term leases, and it equates to $232,000 per annum.
Savills Australia head of city sales and investments, Clinton Baxter, and Nick Peden, negotiated the sale, and said that a number of highly motivated investors were rushing to make offers.
“This is yet another example of the rush to buy Melbourne property at the moment, rush being the definitive term. The phone literally ran hot resulting in numerous potential purchasers making inspections within hours of hitting the market,” said Baxter.
“This reflects the strong demand for well located smaller freehold properties within the CBD, properties which are increasingly shrinking in number as major development takes over the central city area,” he said.
The building is placed for future highrise development and would have desirable views.
The vendor had held the building for 33 years and was a local private investor.
It appears that the tenants include Tourism Malaysia and a Thailicious.
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Just hours on the market and… sold, to an offshore family for $5.4 million

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As stories go, there won’t be many bigger this year than the offshore investors who appear to be buying Australian real estate without Foreign Investment Review Board (FIRB) approval.
Back in March 2014 I wrote: <a href="/expert-insights/investing/the-end-of-the-great-chinese-property-splurge">The end of the great Chinese property splurge?</a>. This was gathering momentum as I heard that the federal government was about to announce an inquiry headed by federal MP Kelly O’Dwyer – probing offshore sales in Australia. In fairness I have watched this for quite a few years now and it was just not adding up – well not until now anyway.
The House of Representatives economic committee report has suggested that lawyers and relatives have been provided a passageway that bypasses FIRB approval as foreign investors believe the $85,000 fine for such a breach is simply the “cost of doing business in Australia”. It should be noted that since 2010 there have been no prosecutions, which is understandable as prior to this inquiry the government had absolutely no idea that this new Australian real estate acquisition method actually existed, let alone had become widespread.
Over the past 48 hours we are starting to get a clearer picture –<a href="/news/firb-powerless-to-identify-or-stop-illegal-residential-purchases-as-chinese-investment-surges"> FIRB powerless to identify or stop illegal residential purchasers, as Chinese investment surges.</a> 
This is not the first time the federal government has been found wanting. I remember back in the early 1990s when the Australian Taxation Office (ATO) wrote to every real estate agency in Australia demanding a comprehensive list of every landlord transaction, rents received, tenants names, full disbursements together with every sale we had made dating back five years (the government back then was then moving into the computer era.)
There are a number of interesting points that I have observed in recent times; the first of which is that each and every property enquiry is actually home-grown. The suggestion that Chinese buyers are looking at China’s largest international property website <a href="https://list.juwai.com/?ag_kwid=504-3-1d922c23cb56ad27.0b2639f826f4bfa3&amp;gclid=CjgKEAjwn-WcBRD61NHM-uqDrm4SJADrP4tPf9IcWh5ZVBKDht7Df4L3GWPa66SNUdaaWJ-tGCWYC_D_BwE" target="_blank" title="Juwai">Juwai</a> simply does not stack-up. We have been paid subscribers to the Juwai website for a few years now and have never yet received a single enquiry – I have also spoken to a number of other agents/agencies who all say the very same.
To try and put this into perspective it’s vital we look at exactly what’s happening here given some agencies have spruiked that such an overseas market exists when the vast majority all confirm the actual contact comes from residents here in Australia – via the Australian property portals. I am yet to speak to an agent who has received an enquiry from a Chinese property portal so that should dispel that myth of where vendors should be redirecting advertising monies.
Another factor that requires consideration is that earlier in 2014 the Canadian government immediately axed its 28 year old visa scheme designed to attract wealthy foreigners to the country. Maybe it’s just a coincidence. However, Treasury advised the Inquiry that there is currently a surge in applications – 10,244 in the nine months to March 2014, compared with 6,567 in the entire 2012/13 year. When you’re buying a multimillion dollar home a fine of just $85,000 is insignificant when one looks at the big picture.
Given these recent revelations, many would now argue the fine should be a proportion of the purchase price, should the Abbott government decide to act on these revelations.
<a href="https://www.rwm.com.au/files/2014/06/12-06-2014-11-38-49-AM.jpg"><img class="aligncenter size-full wp-image-21002" src="https://www.rwm.com.au/files/2014/06/12-06-2014-11-38-49-AM.jpg" alt="12-06-2014 11-38-49 AM" width="567" height="357"></a>
Yesterday the International Monetary Fund (IMF) announced that Australian house prices are among the top five most expensive in the world. This leads me to another observation.
Following “the recession we had to have” in the early 1990s we saw the emergence of a powerhouse new business model that drove our property markets through to the global financial crisis (GFC) – namely merchant banks.
Over the period of the GFC top-end property values dropped by up to 30% given the bankers were effectively removed from the property markets. In the interim we did see an accelerated entry into the prestige property markets by the mining fraternity albeit quick. The banks have re-calibrated and back into a better space in terms of profitability although there is serious doubt they will again dominate these markets again.
It has become very clear that the emerging new player in our top-end property markets has been the Chinese and up until now we all believed this was through the correct government channels. No doubt the vast majority did follow this process, but following what has been revealed in this inquiry the government now must fully investigate this matter.
I don’t believe the overseas investors are the main reason why we have seen a total collapse of first home buyers in Australia. Whilst they are an obvious contributing factor, we are forgetting that we are seeing unprecedented low interest rates where local and overseas investors have taken full control of this market demographic.
With governments across Australia now focused on building new infrastructure it is imperative that as a result of this inquiry a full investigation is launched immediately, as infrastructure drives property markets.
Last week the Premier Mike Baird announced that next week’s NSW budget will reveal a billion dollar plan to <a href="https://www.dailytelegraph.com.au/newslocal/north-shore/nsw-premier-mike-baird-confirms-a-military-rd-tunnel-is-the-best-solution-to-daily-traffic-woes-for-sydneys-north/story-fngr8h9d-1226950408944" target="_blank">overhaul Spit and Military Roads</a>. Now nothing has happened to these areas since they started construction on the Spit Bridge in 1952. The northern beaches are easily the most under-valued prime real estate in Australia because of this antiquated transport system. A vastly improved transport infrastructure would in all probability see top-end property prices potentially escalate by as much as fifty (50)%.
Based on this announcement this is the next Sydney boom area so it would be nice to see that those investing into these markets are 100% approved by the Australian government.
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