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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GUEST OBSERVATION
It’s rare when something from Parliament obtains the obsessive attention of the real estate industry.
The Parliamentary inquiry into foreign investment in residential real estate is an exception. Since so many interesting facts have come to light through the inquiry, this post is a helpful cheat sheet to the most important ones.
Foreign Investment: It’s Actually Plummeting
One of the most interesting submissions to the inquiry comes from Urban Taskforce Australia. They pointed out that foreign investment in Australia is not increasing, but decreasing. (Read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=d3eae632-8ae7-43b3-aff3-4680dc17993a&amp;subId=252519" target="_blank">their submission here</a>.)
That’s happening despite the greater number of buyers from China, who have been the salvation of any number of stranded vendors.
Overall foreign investment in Australian plummeted by 18%, according to official statistics, between 2011 and 2013. Some governments would consider such a large and fast drop to be a crisis in the making.
This is where the Chinese come in. In the context of rapidly falling foreign investment, the Chinese are the rare bright spot. I know this isn’t how things are usually presented, but it’s what the facts show.
The US, Singapore, the UK — these once-reliable friends have dramatically cut their investments in Australian property. With other friends deserting our real estate market, the Chinese are almost alone in sticking with us. 
Rather than abandoning our property market, Chinese have actually increased their investment. They haven’t yet reached the heights of $8.2 billion that the Yanks reached in 2012. However, with a 40% increase to $5.9 billion last year, the Chinese can hardly be accused of failing to pull their weight.  
Foreign Buyers Mean More New Buildings
The submission from Meriton, Australia’s largest apartment builder, showed that foreign buyers actually create new housing in Australia. (Read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=a30eb4e3-146a-4a68-905e-06f75b083e13&amp;subId=252539" target="_blank">the Meriton submission here</a>.)
Meriton wrote that foreign investment "provides a significant contribution to the stock of new Australian housing," increasing supply for sale and rent.
Meriton founder Harry Triguboff says that foreign investors buy 13% of his new apartments – often off the plan. That provides "vital initial impetus” that makes possible the construction of Meriton’s new complexes. 
He also points to government data that shows that foreign buyers pay an average of $1.06 million for established homes and $646,000 for new dwellings. That’s much more than the national median and puts them in another league altogether than first home buyers.
While Foreign Buyers Spend More, They Pay Less
One submission to the Parliamentary inquiry involved actual new research. Lorenzo Casavecchia and Adrian Lee of the University of Technology in Sydney looked at about 74,000 established home sales. (You can <a href="https://www.aph.gov.au/DocumentStore.ashx?id=3e731a61-1f26-42c5-93ae-238064206991&amp;subId=252425" target="_blank">download their paper here</a>.)
They found that the number of Chinese buyers went up over time. That matches with the data we’ve already looked at, showing more Chinese investment in recent years.
What’s shocking, given what passes for accepted wisdom about Chinese buyers, is that the pair also found that, “on average, Chinese buyers pay 2.04% or $13,800 less than other buyers.”
I won’t get into every little detail of this fascinating research paper, so suffice to say that they controlled for just about every conceivable factor that could affect the price.
The low-down is this: while foreign buyers buy more expensive homes, they seem to get them at a bargain. That makes it unlikely that they are pricing other buyers out of the market. 
It’s hard to price someone out of the market when you’re paying less than the market price.
Perhaps the most poignant submission to the Parliamentary inquiry was from a Mr Kristijan Gjikoski. He wrote, simply and directly. Here are his own words, slightly edited for length (read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=036c65fb-30ee-4a79-925d-1456f8b0a035&amp;subId=252269" target="_blank">his whole submission here</a>):
"Please don’t change any laws in relation to foreign real estate investment, [which is] creating jobs in manufacturing, trades and services. Long term overseas investment can been seen as a automatic stabiliser as when things go bad." 
Andrew Taylor is the co-CEO of <a href="https://juwai.com/" rel="nofollow">Juwai.com</a>.
Image courtesy of JJ Harrison/Wikimedia/<a href="https://creativecommons.org/licenses/by-sa/3.0/deed.en" target="_blank">Creative Commons</a>.
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ataylor-LB7AWVFTs9

The Parliamentary inquiry into foreign investment: A quick submissions cheat sheet

<html><body><div class="story-intro">
Foreigners’ access to the $5,000 New Home Owner Grant will be scrapped in ­tomorrow’s state budget.
Foreign investors have been able to secure $5,000 for each new home purchase. They represented 1.3% of the scheme's take-up.
The decision, heralded in today's Daily Telegraph, follows <a href="https://www.dailytelegraph.com.au/realestate/buying/foreign-buyers-are-cashing-in-on-nsws-new-home-grant-scheme/story-fni0cate-1226817098977" target="_blank">a campaign by the The Daily Telegraph since February</a> which secured the support of Opposition Leader John ­Robertson.
The grant will be only available to individuals who are Australian citizens or permanent residents.
The Telegraph's state rounds reporter Andrew Clennell published previously unavailable data that showed some $2 million has been paid out to non-residents.
“We’re all about making sure these grants help those in our own backyard,” NSW Treasurer Andrew ­Constance told the News Ltd audience.
Since the New Home Owner Grant scheme was instituted in July 2012, there have been 429 ­recipients who are non-residents — or 1.3% of recipients.
The figures come despite NSW Premier Mike Baird expressing recent concern about the lack of official information on foreign investment residential purchases in NSW.
His concerns were made to <a href="/expert-insights/investing/nsw-treasury-in-the-dark-with-firb-foreign-buyer-data">the House of Representative inquiry into foreign ownership of residential property</a>.
The scheme began after the government scrapped first homeowner grants for existing properties and raised them for newer properties.
There have also been a small number of multiple applications.
From now on the New Home Grant will be restricted to one grant per person per year.
Opposition Leader John ­Robertson called in February for the government to change the New Home Grant scheme.
“The O’Farrell Liberal government is paying $5000 to overseas property investors to buy homes and land in Australia – that’s money taken straight out of the pockets of young first home buyers,” Opposition Leader John Robertson said at the time on the then O'Farrell government policy.
“Young couples doing the right thing and working flat-out to save for that deposit are paying the price for the O’Farrell Liberal government’s bungling of this scheme."
Last week John Robertson noted ABS figures showed that just 1,099 first home buyers received financing to purchase a home in April 2014 – down from 1,191 in March 2014 and less than half the level of the 2,415 who received financing in March 2011 before the Liberals came to power.
“Mike Baird has been patting himself on the back over the weekend for extending the threshold for first home buyers purchasing new properties – the ABS has confirmed that he is locking more young families out of owning their own home.
“First home buyers now represent only 7.6% of the NSW housing market – they have plummeted from 18.3% share of the market in March 2011."
The Shadow Treasurer Michael Daley accused the government of giving a leg up to overseas speculators – "and people buying their second, third or tenth property."
The grant is paid as a discount on stamp duty for properties worth up to $650,000 and vacant land worth up to $450,000. 
<a href="/expert-insights/building/nsw-first-home-buyers-can-buy-up-to-750-000-under-extended-fhog">The grant will be extended to new home purchases up to $750,000 in another pre-budget advisory</a>. 
The prospect of overseas non-citizens buying up newly built houses and apartments in bulk - all receiving multiple $5,000 grants under the NSW New Home Grant Scheme - was alarmingly raised in the Daily Telegraph.
<a href="/news/stay-calm-local-buyers-dominate-in-sydneys-sutherland-shire">It was wrapped within the now refuted suggestion that these Chinese investors were keeping first home buyers out of the property market</a>.
 
 
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jchancellor-FAypfDUnLy

Foreign buyers to be denied NSW new home owners grant

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<div class="column">
1976
Under the government’s Foreign Investment Policy (at the time the primary mechanism under which real estate investment was screened), some acquisitions of Australian real estate by foreign interests were examinable. However, acquisitions of residential dwellings for the intended use by expatriate Australians and accepted migrants and transfers of real estate between immediate family members were not examinable.
The Foreign Investment Review Board was established to advise the government on foreign investment proposals.
1978
All acquisitions of real estate by a single foreign interest or associated foreign interests up to a cumulative value of less than $250,000 (since 8 June 1978) did not require approval. Proposals from foreign developers to construct and sell real estate developments (including exclusively to Australians) were subject to a minimum 50% Australian equity participation.
1981
All acquisitions of real estate by a single foreign interest or associated foreign interests up to a cumulative value of less than $350,000 (since 8 June 1978) did not require approval.
1985
All acquisitions of real estate by a single foreign interest or associated foreign interests up to an aggregate value of less than $600,000 (since 8 June 1978) did not require approval. Requirement of 50% Australian equity participation removed for developments that are minor (less than $10 million) or short-term in nature (less than five years to complete).
1987
$600,000 threshold was abolished, with all proposed acquisitions of urban (including residential) real estate by foreign interests requiring approval regardless of size or value.
Advanced-off-the-plan category was introduced with a minimum requirement of four or more dwellings in a development provided that no more 50% of the units in any one project were bought by non-residents and subject to an undertaking by the developer to report all sales six monthly so that compliance with the 50% restriction could be monitored.
1989
Foreign Takeovers Act 1975 renamed Foreign Acquisitions and Takeovers Act 1975. Statutory backing given to the government’s Foreign Investment Policy, with existing restrictions requiring foreign persons to seek approval for the purchase of Australian urban real estate replicated in the Act.
1999
Advanced-off-the-plan certificates: only developers seeking advanced approval to sell up to 50% of a development with ten or more (previously four or more) dwellings to foreign investors could apply for advanced approval.
2008
The requirement for temporary residents to obtain foreign investment approval for real estate purchases was removed.
The 50% rule for the advanced-off-the-plan category was removed and replaced with a new requirement that the developer must market the development domestically and the minimum number of dwellings required in a development was increased to 100.
2010
The requirement that temporary residents need approval for real estate purchases was reinstated.
Source: Foreign investment in residential real estate: Treasury submission to the Inquiry into Foreign Investment in Residential Real Estate
Photo courtesy of Flickr/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">Creative Commons</a>.
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How foreign investment policy for Australian residential real estate has changed since the 1970s

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NSW Premier Mike Baird has expressed concern about the lack of official information on foreign investment residential purchases in NSW.
His concerns were made to the House of Representative inquiry into foreign ownership of residential property.
His submission, made to the inquiry as NSW Treasurer, said the lack of detail made it difficult for the government to determine the effects of foreign investment on the housing market.
One of his concerns was whether temporary foreign investors actually sell their properties when they leave the country – a condition required by the poorly implemented law.
"What evidence is there that temporary residents sell their properties when they leave Australia?
"It appears difficult to determine the effects of the foreign investment due to a variety of data constraints," the submission said.
Mike Baird said it would be helpful to know if foreign investment was geographically concentrated.
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NSW Treasury in the dark with FIRB foreign buyer data

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There has been a surge in applications by foreign buyers to buy Australian housing, especially new dwellings.
Treasury reported that 10,244 applications had been approved in the nine months to March, compared with 6,567 in the entire 2012-13 year.
While not all approvals result in purchases, the investment approvals are up 55%.
The preliminary data also indicate significant increased investment in Victoria and New South Wales.
Established home purchases by temporary residents has increased but not to the same degree.
The Federal Treasury department suggests while foreign demand has recently risen, the increase in domestic investor and owner-occupier demand across both established and new dwellings in response to low interest rates has likely been much more significant.
But Treasury admits they can not systematically identify non-compliant property acquisitions within the latest surge.
"There are no information sources that can be used to systematically identify non-compliant property acquisitions, nor are there any mechanisms to prevent such transactions from proceeding. 
"In this context, a compliance framework is used that places emphasis on information and education initiatives, supported where necessary by more active measures to encourage foreign investor compliance."
The updated details were in the Federal Treasury submission to the House of Representative inquiry into foreign ownership of residential property which Liberal MP chairperson Kelly O’Dwyer has tried to make her high-profile cause.
"Despite the limitations, preliminary approvals data for 2013-14 show that, consistent with the overall housing market, there has been strong growth in foreign investment approvals over the previous year, especially in new dwellings," the submission indicated.
The preliminary 2013-14 data show that, consistent with the overall housing market, there has been strong growth in foreign investment approvals over the previous year.
 Of note:
<ul>
<li>Approved proposed investment for the first nine months of 2013-14 was around $24.8 billion, 44% higher than the $17.2 billion approved during all of 2012-13. The total number of residential real estate proposals increased by 4,331 proposals to 15,999 approvals in the first nine months of 2013-14.</li>
<li>The majority of the increase is attributable to proposed investment in new property, which at $19.3 billion for the first nine months of 2013-14 is 79% higher than the $10.8 billion in 2012-13. Approvals for proposed investment in new property also represent the majority of the overall increase, with 10,244 approvals in the first nine months of 2013-14 compared to 6,567 approvals in 2012-13. </li>
<li>The total number of established property approvals for the first nine months of 2013-14 is 5,755 compared to 5,101 for 2012-13.</li>
</ul>
The latest 2013-14 data also indicate that a large proportion of the growth in residential real estate approvals has been from non-resident Chinese investors.
"Some of the potential drivers could include: the depreciation in the Australian dollar, which has fallen against the renminbi during the period of investment growth; China’s domestic housing market conditions — such as deteriorating housing affordability and Chinese government restrictions on domestic house purchases brought in to curb real estate speculation; and continued growth in the size of China’s upper and middle classes."
The submission noted "Australia has not been the only destination for increased outward real estate investment from China, with Malaysia, Singapore, the United States, Canada and the United Kingdom all recipients of increased Chinese investment in recent years."
It also indicated, based on historical data, the average size of an advanced-off-the-plan development was around 170 dwellings.
"On average, around 35% of dwellings in a development have been sold to foreign persons."
The submission said data limitations made it difficult to measure the benefits of foreign investment in the real estate sector.
"Despite these difficulties, there are some general observations that can be made on the overall economic impacts of foreign investment in residential real estate.
"Foreign investment from non-residents increases the demand for, and supply of, housing stock; In the short-term, any increase in demand, is likely to put upward pressure on dwelling prices and the cost of services related to the construction sector (including, at the margin, higher wage levels).
"The extent of the price rise attributable to foreign demand is difficult to isolate from other factors. 
"This increased demand for housing stock should encourage higher levels of housing supply, albeit with a lag, with benefits for the construction industry, employment and growth.
"As dwelling completions catch up to demand, the addition of new supply would be expected to have a moderating influence on dwelling prices.
"In the medium-term, there is a likelihood of downward pressure on housing rental costs from the increase in properties available for rent, which may help address tightness in the rental market (the rental vacancy rate is very low and has averaged 2.3% over the last decade).
"Foreign purchases also increase government revenues, in the form of stamp duties and other taxes, and from the overall higher economic growth that flows from the additional investment."
Previously, Meriton's Harry Triguboff said in his submission to the inquiry that <a href="/news/meritons-harry-triguboff-says-firb-regulations-should-be-liberalised-not-further-restricted">FIRB regulations should be liberalised, not further restricted</a>.
Click to open tables in new window:
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<div class="column">
<a href="/images/2014/06/12/firb-june-12-one.jpg" target="_blank"><img src="/images/2014/06/12/firb-june-12-one.jpg" alt=""></a>
<a href="/images/2014/06/12/firb-june-12-two.jpg" target="_blank"><img src="/images/2014/06/12/firb-june-12-two.jpg" alt=""></a>
Source: Treasury submission to Parliamentary <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/Economics/Foreign_investment_in_real_estate" target="_blank" style="line-height: 1.3em;">Foreign investment in residential real estate</a> inquiry.
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FIRB powerless to identify or stop illegal residential purchases, as Chinese investment surges

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A freestanding IGA supermarket has secured a seven figure sum after it was purchased by a Chinese investor.
The buyer put their faith in the numbers, paying $3,398,888 for the Boondall supermarket. The number eight is associated with prosperity in Chinese culture. The transaction reflected a yield of 8.1%.
Set on a 3,434 square metre site at 2138 Sandgate Road, the 790 square metre supermarket was developed by Hardev Property two years ago. It was sold by in an off-market transaction by Michael Harcourt and Jon Tyson of Savills Retail Sales.
Luck aside, Harcourt said the high profile main road location was a key factor for the buyer.
“IGA Boondall is underpinned by a 10-year lease with a further three five-year options and also features convenient on grade parking for approximately 51 vehicles,” said Harcourt.
According to Tyson, the property combined a number of highly sought after characteristics in the convenience retail market.
“It boasts a prominent left-hand location to capture outbound traffic out of Brisbane and a core non-discretionary offering of grocery and fresh food items,” said Tyson.
“Having opened its doors just two years ago, the Boondall IGA Supermarket is now well established and supported in the local community. As Savills originally secured IGA as the tenant, it is rewarding to have now closed the loop on the property with a strong sales result for both vendor and buyer,” he said.
 
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jrichardson-uRX5hFdKfN

Chinese investor pays lucky sum for Brisbane IGA

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The Myrtles, the historic Medindie, Adelaide mansion has been sold for $5 million to a Chinese buyer with local connections.
The most expensive residential sale in SA history is <a href="/news">Glenelg</a>’s historic Stormont mansion, which sold for $6.5 million in 2010.
Last year’s highest residential sale price in Adelaide was 11 Robe Terrace, <a href="/news">Medindie</a>, a single storey 1900 home on almost 4000 square metres which fetched $4,917,000 in January 2013.
There's speculation that 4 Victoria Avenue, <a href="/news">Unley Park</a> was currently under contract at $5 million plus. The 1920s house on 4622 square metres last sold at $2.95 million in 2004.
The Myrtles sold for $5.2 million in April 2006, but the most recent sale was in July 2007 at $3.9 million.
The renovated 1890-built home on 2,200 square metres has six bedrooms in the main home and a separate self-contained apartment.
{qtube vid:=OvzxT3R34kA}
The Myrtles, at 7 Myrtles Court, sold through<a href="https://www.realestate.com.au/property-house-sa-medindie-115594939" target="_blank"> Harcourts Brock Williams agents John and Stephanie Williams</a>.
“You don’t see too many $5 million private residential sales in South Australia, and I think this is the first one for a couple of years,” Williams told News Ltd papers.
It was once the home of property identities Cathy and Myles Pearce who made a splash on the national stage at the Block auction in the Manly series.
The home boasts 850 square metre of space including formal entrance gallery.
Its chef’s kitchen comes with four ovens, two dishwashers and a cold room.
The grounds come with floodlit synthetic tennis court, a heated pool and spa and an outdoor kitchen.
The home has featured in movies, including Shine, and the television series McLeod’s Daughters.
<a href="/news/the-countrys-most-beautiful-homes-the-winners">It was ranked among the most beautiful homes across Australia</a> on its late 2013 listing by Property Observer readers.
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The Myrtles, Medindie trophy mansion sells to Chinese buyer

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A few days ago, I was asked to comment on <a href="https://www.heraldsun.com.au/business/big-buyers-put-melbourne-on-global-wanted-list-of-prime-cities/story-fni0dcne-1226937873180" target="_blank">The Candy GPS Report</a> which identifies 12 future cities for real estate investment – one of which is Melbourne.
The 12 cities are as follows (from most expensive to the least):
 <img src="/images/2014/06/02/cashmore-june-2-one.jpg" alt="">
Just in case anyone is still deluded that we build the accommodation for people to live in. It correctly outlines how real estate is progressively becoming a mainstream asset class for investors.
Ultra high net worth individuals from Germany, the United States, Japan and other parts of Asia are now looking at secondary markets and second tier cities as an alternative to the somewhat bubbly established safe havens of London and New York.
It comes on the back of what is already a fraught subject in Australia; the impression that “foreigners” are purchasing our residential real estate – bidding up prices and forcing out first home buyers who simply can’t compete.
The parliamentary inquiry last week was devised to put this matter to rest, to prove it isn’t so. Although, for those in the industry who work directly with buyers and sellers, it merely confirmed what we already know.
Australia has a largely unaudited system of ‘non-resident’ investment in its real estate market.
Whilst the official figures seem to demonstrate the larger proportion of demand is increasing supply rather than inflating values.  With only eight staff to audit the thousands of applications the FIRB receives, it admits it relies on "honesty and stern speech", whilst those who work on the ground within the industry, rightly attest that there are <a href="https://www.macrobusiness.com.au/2014/05/firb-says-youre-not-racist-about-property-but/" target="_blank">loopholes</a> in the rules.
For example, corporations, friends, family members, relatives,  and solicitors are all able to purchase for those who do not quality - and from <a href="https://www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgKhttp:/www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgK" target="_blank">anecdotal evidence</a> alone, they seemingly do.
Importantly, it is not up to real estate agents to report their suspicions and inflame a debate which has bordered on racist against our Asian migrants.
The process must be correctly audited, and until it is, argument will continue. However, we should not let this mask the real issue surrounding our residential real estate market – that of government policy. 
As the RBA recently noted in their <a href="https://www.rba.gov.au/speeches/2014/sp-so-150514" target="_blank">“wouldn’t it be nice to have houses at affordable prices”</a> speech a few weeks ago, conditions are not only hard for first time buyers, with wages tracking below the rate of inflation whilst prices trend higher, many others are falling through the cracks altogether.
Previous reports have shown fewer younger and middle-aged people own their own home and across all age groups, fewer own outright. There has been an <a href="https://www.iut.nu/Literature/Australia/housing_supply_affordability_report_2012-13.pdf" target="_blank">increase</a> in both the number of people recorded as homeless as well as the number living in other marginal housing.
If Australians in 2011 had the housing consumption patterns they had in 2001, they would occupy an additional 284,000 dwellings. Instead, despite families having fewer children and an aging population, we’ve seen a reversal of the decade-long decline in household size, which outside of any cultural shift, clearly points towards pressures of affordability.
Now new buyers risk not only being locked out altogether, but also (as the RBA’s Lucy Ellis puts it) “where the jobs are and where the employed people live” – which remains around the central areas of our largest capital cities. As the speech demonstrates, we have not decentralised – in fact quite the reverse. 
 <img src="/images/2014/06/02/cashmore-june-2-two.jpg" alt="">
It comes down to the same old issue – housing policy.
This article continues on the next page. Please click below.
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We build for an investor market in a lopsided economy that has pinned itself to rising land values to support every other area of investment.
This is great for those who were lucky enough get in at the beginning of the lending boom, many of which now have an ample welfare pot for retirement.
Not so great for first home buyers today who are struggling to afford, well… anything at all.
The many vested interests from politicians to industrial lobbyists, to keep land prices inflated, can be evidenced in every area of real estate policy. 
From our failure to correctly audit the investment market (foreign or otherwise), to other matters such as first home buyer grants, tax breaks for investors, turning a blind eye to spruiking, a failure to enforce strong lending rules, and a continual inability to supply affordable housing in the fringe localities on what should be dirt cheap land (close to its agricultural value), enabling new buyers to purchase at no more than three times annual income.
Instead we unduly inflate prices in the outer suburbs through a process of ‘false scarcity’ produced by urban boundaries, zoning regulations, onerous development taxes and infrastructure overlays, all of which encourage speculation in vacant land, which is becoming a far more lucrative venture than building for current low yields.
This further inflates land values in the inner and middle ring localities because, as anyone familiar with classical economics knows, it’s the fringe cost of land that sets the base price for the suburbs closer in.
The report by The Candy GPS mentioned above, which promotes the potential for Australian real estate investment, mirrors other assessments with similar conclusions. 
For example, in a study by investment bank <a href="https://www.credit-suisse.com/au/" target="_blank">Credit Suisse</a> earlier this year, it correctly asserted:
“The marginal buyer of Sydney and Melbourne real estate has changed, as have the drivers of property prices.”
It points out a potential $44 billion investment into Australian residential real estate over the next seven years, mainly due to our geographical advantage in the wider Asia-Pacific region.
To put this into context, by 2025 the Asian region will account for almost half of the world’s output and also be the world’s largest consumer.
In Julia Gillard's ‘Asian Century’ speech, she asserted:
“We are now seeing the most profound rebalancing of global wealth and power in the period since the United States emerged as a major power in the world.”  
The number of Asian students studying here is at record highs.Trade flows, research and business development, education, tourism, and increased levels of migration have given us the potential to capitalise on the inflow. And as the capitals of the two states with largest recorded arrivals of Indian and Chinese migrants, Melbourne and Sydney are set to advantage.
The trouble of course, comes down to management.  The influx will push prices higher and not benefit us over the long-term (especially the next generation of priced out buyers) unless we change policy.  
If we were really smart, we would look at our system of taxation to ensure this investment in land is not only sustainable – but also advantageous to the broader economy.
To do this, we should work on a long-term sustainable plan to remove an array of bad taxes, including stamp duty which impedes housing turnover and labour mobility for owners seeking alternative employment opportunities, trapping residents in housing. As well as phasing out other policies, which focus investor demand on established real estate rather than the construction of new supply – such as negative gearing for example.  Instead we should replace them all with a broad based tax on the unimproved revenue from the locational value of land alone – not the buildings on top. 
Currently, we assess rates on the combined value of both – which means for every improvement to the capital (the man made asset on top) we place a penalty on building activities which impedes the productive capacity locked in our land market.
An effective land value charge, as well as shifting ‘bad’ taxes from productivity, would result in a number of changes.
It would encourage effective utilisation of land in both inner and outer suburban districts, stimulate construction, take some of the speculative element out of the land market, reduce prices and thereby assisting with decentralisation. And with less with ‘economic rent’ locked in the soil, over the longer term would act to increase – not decrease wages.
Combine this with an overhaul of supply policy and the accumulated wealth being brought into the country could be channelled into productive activities, rather than rampant real estate speculation.
It's unlikely that this will occur however. History attests that governments have a habit of allowing wealth to trickle up, not down – usually due to a combination of ignorance, lobbying and vested interests. Albeit, if policy fails to change through both taxation and supply, at some point prices will get too high for productivity to sustain and as recent international examples attest, the future consequences of this will be significant. 
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catherinecashmore-6LXia3pPQj

Australian real estate: Once again ticking boxes for foreign investors

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After a marketing push into Asia, it appears that offshore buyers are interested in Surfers Paradise properties, with Ray White Surfers Paradise noting a total of 202 transactions to Asian buyers in the past 12 months.
Property Observer clarified the nature of the Asian buyers and was told this included 80% offshore and 20% with residency, or around 162 offshore sales.
CEO of Ray White Surfers Paradise, Andrew Bell, said that the sales data points to a focus from these buyers on the central and northern end of the Gold Coast, particularly Southport. He also noted that there was a favouring of development stock, beachside apartments and homes in the areas of Arundel and Labrador.
“The prospect of a Chinatown precinct, and the area’s proximity to Griffith University are huge ticks for Southport in the eyes of Asian investors,” said Bell.
“Another big plus for <a href="/news">Southport</a> is the impending start to light rail service, connecting it with the huge Griffith University and hospital precinct and key locations like <a href="/news">Surfers Paradise</a> and <a href="/news">Broadbeach</a>.”
However, there’s no one motivation behind the purchases – just as there’s no one motivation behind Australian purchases. Holiday homes, accommodation for their children studying at university, for capital growth or for investment return, there are numerous reasons, explained Bell.
“We are the second most visited destination in Australia after Sydney by this demographic and this fact continues to inform and intensify our international marketing efforts,” he said. Their current strategy, which began six years ago, focuses on China, Hong Kong, Singapore, Indonesia and Malaysia, where they have offices.
Many Ray White staff also travel to these countries to build their databases of buyers, including Bell himself.
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jduke-EHk3XBmHkn

Strong offshore transactions noted on Gold Coast: Ray White 

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Somehow when we talk about the biggest phenomenon in Inner Melbourne home buying, Chinese nationals, their spending power and the apprehension that is increasing out there among some home buyers when competing against overseas buyers, we get diverted from the main game.
The main game, in our mind, is not the Chinese nationals themselves. It is how they as a group have been changing the face of Melbourne home buying, particularly since 2009, and how you need to deal with the associated price issues that overseas wealth (demand) and reducing housing stock (supply) will have on you and/or your children’s current and future home buying plans.
What has been happening in the market in the last five years (post-GFC) <a href="/expert-insights/investing/chinese-buyers-in-melbourne-a-simple-case-of-supply-and-demand">is more about demand, supply and price than about Chinese nationals</a>. Big picture-wise, the price and supply changes we are seeing would have happened eventually due to organic population growth. However, right now the overseas market, and in particular the wealth and actions of Chinese nationals, are significantly accelerating the price and supply issues through their demand.
<blockquote>
Overseas buyers are not buying every home, everywhere. Their effect is much more like a snowball rolling down a mountain; in some markets this has turned into an avalanche, whereas in others it is still just a small snowball rolling down a mountain.
</blockquote>
As home buyers you need to deal with this, just as you need to deal with agents, auctions and other nuances of the Melbourne market.
Overseas buyers are not buying every home, everywhere. Their effect is much more like a snowball rolling down a mountain; in some markets this has turned into an avalanche, whereas in others it is still just a small snowball rolling down a mountain.
The effect of overseas buyers is best evidenced by the different strengths and bidder depth in the Inner East markets versus the Bayside markets.
The Inner East market is where Chinese national bidding is the most significant.
<ol>
<li>Inner East had a far shorter GFC period in 2008/2009 than Bayside</li>
<li>Inner East had minor price drops compared to Bayside in the GFC and in 2011/12</li>
<li>Inner East has stronger price per square metre land prices across the board (except absolute <a class="st_tag internal_tag" href="/news" title="Posts tagged with Brighton" rel="tag">Brighton</a> waterfront)</li>
<li>Inner East has changed streetscapes in many areas. with new builds specifically aimed at the Chinese national market, e.g. <a href="/news">Balwyn</a> and <a href="/news">North Balwyn</a>.</li>
</ol>
Short-term and understanding the changing market nuances
As buyers you need strategies to compete against wealthy overseas buyers now and to buy well generally now. You also need to understand as buyers that EOIs are set up in a number of cases for Chinese nationals and other overseas buyers. You need to manage that if the home you want to buy is being sold through an expressions of interest campaign.
You need to understand how Chinese nationals and other overseas buyers value land and buildings, so you can compete effectively.
You need to understand how different cultural influences affect private sale and EOI negotiations and you need to know how to prepare and bid at auction when competing against overseas buyers.
If you don’t, or your strategy is to wait, then we think you may have issues, as we have tried to illustrate in the above diagram.
But it’s not just about you buying a home now. What effect will this significant influx of wealth have on your children buying homes?
Longer term solutions and a different strategy
As buyer advocates, a large part of our business has always been buying generational homes for families to live in and pass on. We have acted many times for local and overseas clients, including Chinese nationals, with this as a key desired outcome.
An increasing market segment for us (with a slightly different take, but same desired outcome) is the purchase of smaller, well-located family homes through super funds.
These $1 million plus homes are bought as quasi-investments and sit in super funds with the view they can return some cash and provide some growth in the medium term; but ultimately they are purchased for our client’s children as a hedge against being priced out of the market.
Generational Homes for you and your children
Personally my family lives in a three home estate in Brighton with grandparents and parents and children. This has been set up like this to assist future generations to remain in the area (if they so choose).
It was relatively easy for my generation in the 1970s and 80s to move from Outer Melbourne (Doncaster was then Outer) to Inner Melbourne (Malvern then Brighton).
But how easy will it be for our children to find a home? Our children may well be the first generation that is living in poorer accommodation as adults than they grew up in as children.
Unless our children are rocket scientists with an entrepreneurial bent, or they get parental help, they will be moving further away from Inner Melbourne on affordability grounds. Or they will be living nearby but in apartments.
In moving further away from Inner Melbourne your children will also be moving further away from infrastructure, transport, school choice, the footy, restaurants and you.
We suggest you develop strategies now.
We are not for or against overseas buying, just as we are not for or against first home buying grants or for or against negative gearing. Our job is not to debate. We see our job as raising the issues and helping our clients find solutions. We are buyer agents operating in the Top End marketplace.
We feel this best helps you, the buyer, consider your options now and into the future.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
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