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

<html><body>
<div class="story-intro">
The Foreign Investment Review Board (FIRB) has issued just the 17 orders for foreign investors to divest ­illegally acquired property in Australia since 2003, data obtained by Kelly O'Dwyer's parliamentary committee has revealed.
The FIRB had failed to prosecute a single matter since 2006 for illegally acquiring property in Australia.
<a href="/expert-insights/investing/no-divestiture-orders-as-chinese-buyers-top-the-12-025-foreign-investors-firb">The lack of divesture orders</a> has been a cause for criticism of the FIRB to monitor the investment rules.
Some of its divestment orders have related to the failure of the overseas buyer from developing the property within the designated time. There was one known case on the Gold Coast.
<a href="/news/cubbie-station-set-to-sell-to-chinese-led-syndicate-that-must-shed-some-of-its-equity-within-three-years">The Cubbie Station sale was approved with divestiture orders</a> requiring the buyers to seek partners by 2015.
Property Observer has reported two Sydney cases where <a href="/news/chinese-buyers-strathfield-house-purchase-plans-blocked">purchases have been stopped from proceeding</a>, in Strathfield and <a href="/news/nsw/bellevue-hill-secures-7-7-million-house-sale">Bellevue Hill</a>. 
Australia allows foreign investment in new housing to stimulate supply, but prohibits foreigners from buying fixed homes in all but a narrow range of circumstances.
</div>
New rules mean temporary residents must dispose of property they have bought within three months of departing Australia.
The House of Representatives economics committee’s inquiry has heard evidence that the rules are being flouted, with foreigners happy to take the risk of not being caught.
The Australian reports the committee is poised to recommend that foreign investors pay a fee to apply for permission to purchase real estate in Australia.
It is also likely to recommend changes to data-collection policies to ­ensure the nationality of buyers is recorded and<a href="/news/kelly-odwyer-looks-at-fining-estate-agents-lawyers-and-accountants-under-new-firb-rules"> fines for those local agents, lawyers and accountants who assist in illegal purchasing</a>.
O’Dwyer has flagged considering stamp duties to be imposed on foreign buyers to cool the money flow from China into Australian residential property markets.
</body></html>

jchancellor-FAypfDUnLy

FIRB issued just 17 divestment orders to foreign buyers over past decade

<html><body>
GUEST OBSERVATION
Melbourne is one of the top cities chosen in Australia by property investors from overseas, in particular the Chinese investor. 
Last year, nearly $6 billion was spent on Australian real estate by Chinese investors and Credit Suisse predicts that Chinese nationals will spend around $44 billion on Australian residential real estate over the next seven years. 
Therefore, as more and more Chinese investors cast their eyes towards investing in Melbourne, it will pay to ensure that the real estate agent who is selling your property has a good understanding of, and is well networked with this lucrative buyer market.
Helping to attract wealthy Chinese to Australian shores is the Australian government’s new visa system – the significant investor visa.  Over 90% of the people who have <a href="https://www.bbc.com/news/world-australia-29611137" target="_blank">successfully applied for this visa are Chinese</a>. 
Melbourne already has a large Chinese population. In fact, <a href="https://chinatownmelbourne.com.au/about-chinatown/" target="_blank">Melbourne has the oldest Chinatown in the world</a>, outside of China, and its Chinese population continues to grow steadily and gravitate towards specific areas, with one example <a href="/news">Bentleigh</a>, in Melbourne’s south-east. Over the past three years the Chinese population in Bentleigh has flourished and grown exponentially.  
Chinese buyers heading to Australian shores value the cost of our properties (Australia is still relatively cheap compared to a lot of cities around the world), our good education system, quality of life, public security and clean air. Bentleigh’s attraction to the Chinese buyer lies primarily in its good schools, but also in the attractive large and modern houses it has to offer.
The suburb features a number of excellent primary schools, and is in the catchment area for one of the best public schools in the area, McKinnon Secondary College. Additionally, Bentleigh is attractive to the Chinese investor for its proximity to Melbourne’s CBD (just 12 kilometres away), its good transport links and its access to the Bayside beaches.
For real estate agents operating in areas that are culturally diverse, it is important to have a team that understands the local market and therefore has the ability to effectively target prospective buyers.  Hodges works tirelessly to ensure clients get the best possible outcome for the sale of their property and this means targeting all prospective buyer groups in the local area.
Ultimately, getting the best price for a property is about maximising the number of interested buyers, so therefore given we know what we do about the Chinese investor; it would be negligent not to include them as an important stakeholder group.
It is for this reason that every Hodges Bentleigh property listing is translated into Mandarin and listed on the Gifang.com site. This means our clients are able to tap into a huge market of potential Chinese-speaking buyers that we know are actively looking to buy in Melbourne. Hodges also offers a translation service so that we can communicate with Chinese buyers in Chinese.
There is no shortage of Chinese investors in the Melbourne property market and this is great news for those selling properties in areas that are attractive to Chinese investors. As a vendor it pays to select an agent with a sound knowledge of the Chinese investor market. After all, extending the reach of a campaign to include another layer of buyers will only help to ensure the best price come auction day.
Frank Ruffo is director of <a href="https://www.hodges.com.au/hodgesbentleigh" target="_blank">Hodges Bentleigh</a>.
</body></html>

po-LsXgBTHBmX

Tapping into Melbourne's Chinese investor interest

<html><body>
Foreign investment in Australian property is a divisive topic.
The Foreign Investment Review Board (FIRB) <a href="/news/tougher-firb-rules-delayed">is coming under close scrutiny</a>, with many believing the board is neglecting to police the current rules around offshore purchasers. Others suggest that the existing rules are too weak and are pushing for new legislation. 
But what actually are the current rules for foreign buyers looking to purchase Australian residential property? Here are some of the most pertinent rules:
<ol>
<li>An application must be made for each specific property that a foreign buyer intends to purchase. An application must be lodged for that home – it cannot be lodged for a general or in principle approval. This approval then stands for 12 months from the date on the letter. Separate applications can simultaneously be made and granted for multiple properties. 
</li>
<li>The approval letter (which comes as an email) only applies to the individual or group who applied. It is not transferrable, and if another party wants to buy they must re-apply. 
</li>
<li>Temporary residents, and 457 visa holders, are only able to buy one established dwelling, which is to be used as a primary place of residence. There are no restrictions on the number of vacant and new properties (or established properties for redevelopment) that approval can be received for. 
</li>
<li>Temporary residents cannot purchase established dwellings until they actually live in the country. 
</li>
<li>Temporary residents must sell the established property when they leave as it is no longer their PPOR. They cannot rent it out. It must be sold within three months of leaving the country. 
</li>
<li>Foreign non-residents can only purchase vacant land or new property upon application. Established properties for redevelopment can be purchased under certain circumstances. 
</li>
<li>Approval is not required to sell unless the conditions have not been met. For instance, if vacant land was not developed by the purchaser, then approval will be required. 
</li>
<li>Those who no longer wish to purchase the property need to withdraw their approval by notifying the FIRB. 
</li>
<li>If you become a permanent resident then all conditions cease to apply. 
</li>
<li>If the developer has been granted pre-approval to sell new dwellings to foreign buyers, the foreign buyer does not need to submit an approval application. 
</li>
<li>Approval is required for foreign non-residents regardless of the method in which they buy – e.g. through a trust or company structure. 
</li>
<li>Foreign non-residents cannot buy secondhand (established) property, or buy a stake in the property, unless they do so with a spouse. Approval is still required.</li>
</ol>
</body></html>

jduke-EHk3XBmHkn

What are Australia's foreign investment in real estate rules?

<html><body>
Few things make me more cynical than the sound of a politician mouthing concern about housing affordability.
In my lifetime, there have been hordes of politicians and governments claiming to want to solve the problem, but none willing to take any real action.
When it comes to improving affordability, many politicians talk a good fight, but none is capable of delivering a knockout punch.
The latest masquerade in this regard is being led by MP Kelly O'Dwyer.
O'Dwyer has obviously watched a few episodes of Yes Minister before deciding on a course of action: bring on an inquiry, issue lots of press releases, target an unpopular minority and take "strong action" against these alleged perpetrators of the perceived problem – but essentially do nothing meaningful so that the status quo remains intact.
The truth is, 40% of the cost of a new house in Australia comprises government fees, charges and taxes. Remove those and the cost of a $400,000 house-and-land package would drop to $240,000.
In all the froth and bubble coming out of the federal inquiry, we haven't heard O'Dwyer or any other politician confront this reality. Why not? Because if they did, their advancement within the party would suffer a sharp U-turn.
Governments are addicted to the revenue they milk from their favourite cash cow, the real estate industry. That's sacred and the possibility of scraping stamp duty, for example, is not up for discussion.
So what to do? How to create the illusion of doing something while changing nothing?
<blockquote>
Many Australians have a big issue with Chinese investors, although they don't seem to mind American, British, Dutch, Italian or New Zealand investors.
</blockquote>
The answer, as always, is this: target an unpopular minority, talk tough, issue lots of press releases, look strong, do nothing. Works a treat every time.
O'Dwyer has a bee in her bonnet about foreign investors. I'm not sure whether she truly believes that foreign investors are the cause of the perceived affordability problem. I seriously doubt that she does, because someone armed with all the relevant information, as she should be, must know that foreign investors are not impacting the price of suburban houses in Australia.
But foreign investors are a great scapegoat, particularly as this currently means Chinese investors. And many Australians have a big issue with Chinese investors, although they don't seem to mind American, British, Dutch, Italian or New Zealand investors.
So tough-talking Kelly is going a come down hard on Chinese investors. It'll be good for some media sound bytes and it'll help to advance the career of a politician no one had heard of until recently.
But will it make housing more affordable? No, it won't change a thing.
A quote from Shakespeare comes to mind: "It is a tale told by an idiot, full of sound and fury, signifying nothing."
Chinese investors are not impacting the price of houses in first-home buyer markets in Australian cities. Overwhelmingly, they are buying high-rise apartments in the CBDs of Melbourne and Sydney, as well as the Gold Coast, which is a perennial favourite for Asian investors who enjoy losing money.
If they're buying suburban houses, it's primarily top-end homes in the millionaire suburbs.
The Federal Government could pass a law tomorrow banning all foreign investment in Australian residential property – and the price of houses in the suburbs of Sydney and Melbourne would not change.
But if they removed the taxation component of a house-and-land package, that would make a dramatic difference.
Any chance of that happening? Not remotely.
This is a publicity exercise. Meaningful change is not on the agenda.
Terry Ryder is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> him or contact him on <a href="https://twitter.com/hotspotting" target="_blank">twitter</a>.
 
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terryryder-YECXbqmri2

Pollies prefer to milk the property cow than to make meaningful change

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A petition on Change.org to toughen the regulations for foreign investment in Australia has close to 6,000 signatures.
With supporting information from Today Tonight and The Australian, <a href="https://www.change.org/p/the-executive-members-toughen-the-regulations-for-foreign-investment-in-australia?alert_id=HEtLpxcPaJ_FP7OUYEuxludYFTqMcgLFq%2FQT%2FI%2BGnc6gHRzp7hGsEIfi%2Fl9KeHPyJgeOw2P56ks&amp;utm_campaign=159819&amp;utm_medium=email&amp;utm_source=action_alert" target="_blank">the petition</a>, launched by Simon Hosking, noted that he is unable to purchase property in China, Japan and many emerging economies.
“I am not suggesting no foreign investment, but a more thorough testing of foreign buyers and purchases. Also, a toughening of regulations by the Foreign Investment Review Board,” he writes.
The petition, which will be sent to the executive members of the Foreign Investment Review Board (FIRB), asks for the introduction of more thorough testing of foreign buyers and their purchases, the scrutinising of each purchase for irregularities and the toughening of regulations surrounding foreign investment in Australian properties.
Signed 5,449 times at the time of writing, it is aiming for 10,000 signatures. Update: It is now seeking 25,000 signatures and is just shy of 6,000 in total.
Reaching 5,000 signatures yesterday, Hosking wrote that the demographic in Australia is rapidly changing.
“The Foreign Investment Review Board is either politically unwilling or incapable of defending and protecting the sovereignty of this country. If you observe FIRB's behavior, you definitely notice their stubborn refusal or ineptitude to slow the surge in what “appears” unregulated foreign buying,” he said.
“Clearly, foreign interests are taking advantage of this ineffectual regulatory authority and inadequate policing; leading to gazumping, irregular bidding, laundering cheap offshore funds, fake identities, fraudulent purchasing tactics, etc…Given what we know about the state of the market, and that locals are being priced out, by overseas purchasers. The Foreign Factor is a critical issue. [sic]”
Pointing to limited supply he said that "continue and relentless overseas investment in our market is driving prices higher".
Comments from those signing include fears that future generations will never be able to afford a home, concerns about the sale of arable farming land to offshore buyers and others saying it should be a two way street with the ability to purchase overseas.
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Petition to toughen FIRB regulations at almost 6,000 signatures

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Stephen Koukoulas, has stirred some readers up on Twitter.
<a href="https://www.propertyobserver.com.au/https://twitter.com/TheKouk/status/522334312637558784" target="_blank">The Kouk asks</a> why there’s so much paranoia around foreigners paying high prices for houses when 99% of iron ore dug up is sold to foreigners as well.
<img src="/images/2014/10/16/Picture%203.png" alt="">
Many were quick to respond to say that the two are not comparable issues.
Bullion Baron said “last time I checked Australians don’t need to live in an iron ore so the price of it is of less consequence to the average family.”
Meanwhile, David Scutt tweeted that the iron ore 2011 supply deficit caused price distortions, massive over-investment and a “supply glut years later”.
However, Shervin D’Aguiar said that supply side fixes the housing problem, noting that foreign buyers, negative gearing and the first home owners grant are all “side distractions”.
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99% of ore goes to foreigners, why the housing paranoia?: Tweet of the day 

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The Federal Government plans to introduce a new visa program, encouraging more high net worth individuals to make Australia home.
It proposes to create a new Premium Investor Visa (PIV) which offers a faster 12 month pathway to permanent residency for those who invest at least $15 million.
Changes are also being planned to the Significant Investor Visa (SIV) program which was established under the Labor government with the aim of encouraging foreign investment.
The SIV gives a pathway to permanent residency for those who invest at least $5 million in Australia for at least four years.
The PIV criteria for eligible investments are also being change so that they align with "the Government's national investment priorities".
These criteria will be determined by the Federal Government's Austrade agency in consultation with the key economic and industry portfolios.
Austrade will also become a nominating body for the SIV.
The PIV will be introduced from July 1, 2015, while the SIV changes will take place during 2014-15.
The targeted investment eligibility criteria will be determined by Austrade following consultation with key economic and industry portfolios.
It is likely the investors will quickly buy an Australian home, with fund manager Roger Montgomery suggesting property prices, at least at the high-end, could well be supported for some time yet.
"Wealthy foreigners often purchase property in Australia as an investment – a trend which has surely exacerbated house price inflation, particularly in Sydney and Melbourne," <a href="https://rogermontgomery.com/can-house-prices-fall/" target="_blank">he blogged</a>.
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Premium Investor Visa takes required offshore injection to $15 million

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The $9.6 million Killara mansion sale of Manresa was notched up by a Significant Investment Visa-approved buyer.
There has been an influx of Chinese buyers in Australia last week during the holiday period known as Golden Week.
<a href="https://www.realestate.com.au/property-house-nsw-killara-118016223" target="_blank">The </a><a href="https://www.realestate.com.au/property-house-nsw-killara-118016223" target="_blank">Stanhope Road property</a> last sold for $7.28 million in 2009. Manresa was inspired by 19th-century Queen Anne architecture. Property Observer columnist Margie Blok once wrote that it was reminiscent of the lavish Beverley Hills mansion owned by rock star Rod Stewart.
"The majestic home is embraced by 4,000 square metre of rolling established grounds and is a monument to the Golden Triangle's elite status," the marketing said.
The record remains at Springdale Road's Deepdene, a 5533-square-metre heritage-listed estate with extended 1924 bungalow sold two years ago by former Microsoft pioneer Daniel Petre and his wife Carolyn for $11.5 million. It was purchased by Anita Cunliffe, the wife of Guy Fowler, the managing director of UBS.
Sales in Killara this year have included former Macquarie Bank executive Murray Bleach and his wife Leigh securing $6 million-plus.
Golden Week (黄金周), in the mainland of the People's Republic of China, is the name given to a semi-annual seven day early October national holiday, implemented in 2000.
October 1st, 1949 was the memorial day for the founding of the People’s Republic of China. Ever since 1950, every October 1st has been celebrated by Chinese people.
 
 
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China's Golden Week secures $9.6 million Killara sale

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Guest observation
Despite valiant efforts by commentators such as <a href="https://www.crikey.com.au/2014/03/10/chinese-real-estate-invasion-not-according-to-the-data-fellas/">Bernard Keane</a> and <a href="https://www.smh.com.au/business/comment-and-analysis/why-we-should-welcome-chinese-housing-investment-20140311-34j00">Michael Pascoe</a> to slay claims that Chinese buyers are making it harder for ordinary Australians to enter the housing market, the notion <a href="https://www.smh.com.au/comment/grey-money-from-china-helps-blow-our-property-bubble-20140928-10n7a8">refuses to die</a>. It is the <a href="https://www.propertyobserver.com.au/https://press.princeton.edu/titles/9702">“zombie idea”</a> afflicting the Australia-China economic relationship.
And there is a danger the zombies will multiply. Last week the <a href="https://www.afr.com/p/business/property/more_chinese_investment_likely_as_hgTpJvcLwJaFVV5MpsX5EL">Australian Financial Review</a> reported that China recently eased restrictions on outbound investment. The implication being “a fresh wave of capital [is] expected to make its way into the Australian property market”.
The <a href="https://www.smh.com.au/business/chinese-investors-are-pushing-into-melbourne-and-sydney-20141010-113q7x">Sydney Morning Herald</a> continued with the same theme listing several recent examples of Chinese-funded projects with values reaching into the billions.
But all these reports lack one critical factor: context.
Even if Chinese investment is rising, it is still a small proportion of the market
All foreign investment in Australian real estate requires approval from the Foreign Investment Review Board (FIRB).
According to <a href="https://www.firb.gov.au/content/publications.asp">FIRB</a>, over the period 2009-10 to 2012-13, approvals for Chinese investment in Australian real estate totalled $16.6 billion.
At first blush this seems an impressively large figure. But it is actually less than 10% of the total value of foreign investment approvals in the sector.
Approvals to Chinese investors have lagged behind those from the United States. They have also not been much more than those from the United Kingdom, which has an economy around one quarter the size of China’s and less than 5% of the population.
The scale of Chinese investment seems again smaller when viewed against the size of the market. In a report earlier this year, the <a href="https://www.rba.gov.au/publications/bulletin/2014/jun/bu-0614-2a">Reserve Bank of Australia</a> (RBA) observed that total foreign investment approvals in residential real estate have historically only been around 5-10% of the value of home sales. Chinese approvals are just a proportion of this percentage.
It is also important to keep in mind we are talking about approvals here, not purchases. This means FIRB data overstate the true value of foreign investment.
For example, a property developer in Australia can apply to the FIRB for approval to sell all new dwellings in a large scale real estate project to foreign buyers. In their <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/foreigninvestment/index.htm">submission</a> to the Inquiry into Foreign Investment in Residential Real Estate, the Commonwealth Treasury noted that based on past experience only around 35%, on average, of such dwellings end up in the hands of foreigners.
Also don’t forget that FIRB data is gross, not net. In any given year some foreign investors will seek FIRB approval for new purchases. Meanwhile others will sell down their existing portfolios. As a result, simply adding the value of FIRB approvals from year to year exaggerates the size of the stock of Australian real estate assets held by foreigners.
What all this means is that Chinese investment can grow strongly and still not come close to flooding the market. Citing preliminary FIRB data from the first three quarters of 2013-2014, the Commonwealth Treasury noted a sharp jump in foreign investment approvals over the previous year, particularly from China. But as the RBA shows, this still only takes the value of total foreign investment approvals to around 12-13% of total sales.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Chinese investment actually increases housing supply
Issues of scale aside, Chinese investment has the effect of increasing housing supply. This acts to restrain price growth.
Regulations also limit Chinese investors to buying new properties. Exceptions are few. For example, a Chinese student may purchase an established property to live in while studying in Australia. But it must be sold once they return home. Building new housing requires a lot of capital. A report earlier this year by the <a href="https://www.ahuri.edu.au/publications/projects/p81009">Australian Housing and Urban Research Institute</a> found a leading cause of the undersupply of housing in Australia is the availability of finance. Banks are the first port of call for most developers. Yet banks generally demand pre-sales, or sales of dwellings before their construction even begins, of between 50-100% of the value of the loan being sort.
<a href="https://www.smh.com.au/business/comment-and-analysis/why-we-should-welcome-chinese-housing-investment-20140311-34j00">Michael Pascoe</a> put it like this, “Without the stimulus of investors to get the country building now, we’ll face demand-induced price pressure all of our own soon enough”.
With a small population and a limited domestic savings pool, Australia has a long tradition of accepting and benefiting from foreign investment in capital-intensive sectors of the economy. The real estate sector is no different: a dollar of Australian savings tied up in housing is a dollar that cannot be productively invested elsewhere.
Other benefits of Chinese investment include the very real jobs created in Australia’s construction industry and associated sectors such as housing appliances.
Are foreign investors breaking the rules?
Recent allegations that some foreign investors have skirted FIRB rules to purchase established housing have attracted much <a href="https://www.smh.com.au/business/punish-foreign-property-cheats-says-coalition-mp-kelly-odwyer-20140916-10hp2r">media attention</a>. This claim does nothing to undercut the benefits brought by foreign investment. Rather, it is a complaint about existing rules not being enforced.
The intensity of enforcement is entirely at the discretion of Australian authorities. The FIRB reviews around <a href="https://www.afr.com/p/national/firb_we_don_have_staff_to_veto_foreign_u7VxVO2Hr9zdQsjkc8NwyK">2.5% of housing transactions</a> to verify compliance. Simple economics says that scrutinising every one of the 600,000 housing transactions each year would not be an efficient use of resources. The FIRB employs the same risk management approach that Australian Customs uses when screening imports for contraband and counterfeit products.
Another factor that troubles commentators about Chinese investment is that some of this money finds its way to Australia via the <a href="https://www.smh.com.au/comment/grey-money-from-china-helps-blow-our-property-bubble-20140928-10n7a8">“grey economy”</a> or the <a href="https://www.theaustralian.com.au/business/banks-admit-to-limited-control-over-foreign-funds-for-housing/story-e6frg8zx-1227021005452">“shadow banking system”</a>.
But there is nothing sinister about it. China has a prominent informal financial system because its formal banking sector functions so poorly. It regularly offers savers negative real returns and supplies a dearth of credit to dynamic private sector firms.
Without an informal financial system to overcome these deficiencies, China’s growth would have been much slower than it has been and Australia would be worse off as a result. Similarly, the flow of Chinese capital to Australia would have been reduced and so too would the benefits received – there would be less housing supply and fewer construction jobs.
Knee-jerk arguments blaming Chinese investors for high Aussie house prices may be refuted with hard evidence. Unfortunately zombie ideas in economics have a habit of rising again.
<img src="https://counter.theconversation.edu.au/content/32455/count.gif" alt="The Conversation" width="1" height="1">James Laurenceson is the deputy director and professor at the Australia-China Relations Institute (ACRI) at the University of Technology, Sydney. He does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/zombie-economics-the-notion-china-is-to-blame-for-australias-property-bubble-refuses-to-die-32455">original article</a>.
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jrichardson-uRX5hFdKfN

Zombie economics: the notion China is to blame for Australia's property bubble refuses to die

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If one was looking for a single word that is missing from the ongoing property debate, look no further than 'perspective'.
Some are looking at the property market from a perspective that has lead them to a conclusion which is totally and completely wrong.
Investors have got it completely right given (in the case of Sydney) we are suffering from a chronic undersupply which explains why the vacancy rate in a 10 kilometre radius from the CBD has sat below 2% for the best part of a decade.
Never before have we seen a better time to convene an inquiry into the Australian real estate markets because nobody has an accurate perspective as to what is actually happening. Earlier this year I was one of the first to write that something was not right with the influx of overseas buyers.
This brought about an inquiry (that is still going) although it has exposed the Australian Foreign Investment Board (FIRB) to be in total disarray.
Last week, Federal MP Kelly O'Dwyer told ABC Lateline:
"What we've found out though, through the evidence that our committee has received, is that these rules have simply not been enforced through prosecution since 2006 by the FIRB. I think there has been a failure of leadership of the FIRB on this. I think they have dropped the ball. I think if we have rules in place, those rules need to be properly enforced. That is the only way we can give confidence to the Australian people that our foreign investment framework's working as it should. So we would be looking to tighten up exactly what occurs in terms of enforcement penalties that can be applied, but also to make sure that FIRB is doing its job."
Well it's very clear that FIRB have not been doing their job, so in the meantime Ms O'Dwyer should be introducing a temporary ban on all overseas purchases until such time that the government can fully determine how big this matter is.
In my opinion there is no better person qualified to chair the inquiry than Bill Moss who is a former Macquarie Group banker and head of property. Speaking to The Weekend Australian, he said:
"This is the first (property) cycle we've seen where there's a deregulated global market,where capital is free to flow from Asia to Australia. We have a free floating dollar, equity makers are global and now our residential markets are going the same way."
The major concern in Australia is that nobody knows just how many properties have been acquired given nobody has a perspective as to the exact number.
Although, negative gearing presents a much bigger problem in the Australian property markets than overseas investors.
Another person who must be appointed to an inquiry is Saul Eslake, who this week called on Canberra to put an end to negative gearing for new investors as the best way to dampen frothy property markets in Sydney and Melbourne.
It should be noted that he referred to them as 'frothy' not a 'bubble'. He accepts that it is not politically feasible to abolish negative gearing because around 15%of voters are currently taking advantage of negative gearing – which explains why no politician should participate in the inquiry given they have vested interests.
Australian investors are smart and can sense a change to the property tax landscape in Australia, which I pointed out last week.
It is important to note the recommended measures are nothing more than temporary until such time that the government can get a correct perspective on the Australian property markets.
Bill Moss went on to say in his interview that our housing markets were better tackled at a state or local government level, with the federal government or the Reserve Bank of Australia's (RBA) macro prudential tools such as restricting how much banks can lend to investors. "Rather than react to what's happening, what the government needs to do is understand what is going to happen."
The interview keeps getting better, when he commented that "governments should look how to make money from a real estate bubble."
In my opinion, overseas buyers should be paying a much higher Stamp Duty and a Vacancy Tax for all properties where the owners decide to landbank by locking them up. All these taxes should be flowing into new infrastructure strategies.
The problem is that governments have neither perspective nor understanding about real estate machinations. So they need to establish an inquiry to better understand what exactly is going on as against merely flying from the seats of their pants.
 
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