Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348840]

Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

[smartcode_project_cta:default project_id=136434]

Joel Robinson

Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

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The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

Gold Coast developer&nbsp;<a href="https://www.apartments.com.au/developers/big-projects">Big Projects</a> has secured approval for its second Mermaid Beach project.

The developer, currently selling <a href="https://www.apartments.com.au/new-apartments/the-frederick-mermaid-beach-2265-gold-coast-highway-mermaid-beach-qld-4218">The Frederick in Nobby Beach</a>, has secured approval for its next project just 1.5 kilomnetres up the road.

The new development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/glenelg-residences-2462-2472-gold-coast-highway-mermaid-beach-qld-4218">Glenelg Residences</a>, has been designed by BDA Architecture and&nbsp;will have just under 100 apartments across an 11-storey building&nbsp;at 2462–2472 Gold Coast Highway, on the corner of Glenelg Avenue just under 300m from the future Mermaid Beach Light Rail stop.

The apartments, a mix of two- and three-bedrooms, will sit above a retail-focused ground plane and under extensive rooftop resident amenities.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screen%20Shot%202024-06-11%20at%209.55.04%20am.png?VersionId=z6NV4izeuvhBSSVlY6vK6TPO1LxrFeaG" />

BDA said in its planning submission that the project is intended to support the area’s transition toward higher-density, mixed-use living. “This project offers the opportunity to generate appropriate higher-intensity development within the future Light Rail corridor of <a href="https://www.apartments.com.au/developments/mermaid-beach-qld-4218">Mermaid Beach</a>,” the submission noted.

At ground level, Glenelg Residences will include eight retail tenancies designed to activate the street frontage, complemented by a basement bar offering an additional hospitality element. Above, residents will have access to a rooftop amenity deck featuring an infinity pool, hot and cold plunge spas, day beds, and barbecue facilities.

The architectural approach adopts a restrained material palette of brick, textured concrete, and integrated landscaping, with cantilevered concrete frames and cascading planting intended to soften the built form. BDA described the design as aiming to create “a memorable sculptural mid-rise mixed-use building” that responds to both its coastal setting and urban context.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-11%20at%209.55.45%20am.png?VersionId=cpjIVBqcT_sujmo2UMWkVyLcQ7WGJHaQ" />

The approval comes as the City of Gold Coast continues to plan for significant population growth, with regional targets requiring more than 100,000 new high-density dwellings by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-36" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-17" dir="auto">
Big Projects, led by Matthew and John Barrett, is part of a growing cohort of developers that deliver construction in-house, providing a high level of confidence to prospective purchasers.
</section>

[smartcode_project_cta:default project_id=150260]

Big Projects secures approval for Glenelg Residences in Mermaid Beach

Kpmg

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Chinese investment in Australia dropped to AUD 8.2 billion in 2018 – down by 36.3% from 2017, according to the latest research from professional services firm KMPG.
KMPG's Demystifying Chinese investment in Australia report, written with The University of Sydney, found that private companies dominated the investment landscape.
They accounted for 87% of deal value and over 92% of deal volume, with an overall trend towards smaller sized deals.
Healthcare was the most popular sector for Chinese investors, with commercial real estate falling to second position. 
Chinese investors still see Australia as a relatively attractive country to invest in, the report notes, with an improving political climate, but they also confirmed that they are finding it harder to get capital out of China, and there are challenges raising capital in Australia.
 Knight Frank contributed data and analysis on commercial real estate transactions.
<a href="https://www.propertyobserver.com.au/images/2019/4/8/Chinese%20ODI%20to%20Austraia%20.png" target="_blank">Click here</a> to enlarge: 
<img src="https://www.urban.com.au/images/2019/4/8/Chinese%20ODI%20to%20Austraia%20.png" alt="">
“Despite Chinese global outbound direct investment actually growing by 4.2% in 2018, Australia has felt the pinch of a significant reduction to our shores, reflecting the impact of policy changes in China," said Doug Ferguson, KPMG's head of Asia and international markets and report co-author.
"Our rate of decline has been accelerating and is now closer to the trend observed in the United States and Canada, where Chinese Overseas Direct Investment dropped by 83% and 47% respectively in 2018.”
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“While this annual result brings Chinese ODI in Australia back to the second lowest level since the mining and gas driven investment peak year of 2008, there is no reason why Australia can’t return to higher levels of Chinese capital inflow seen historically.”
“2018 need not define a trend of lower Chinese investment in Australia into the future but it is a moment to reflect upon. There are a great many opportunities for Chinese companies to contribute towards the development and internationalisation of Australian industries in the coming years. Australian companies seeking further investment must continue to explore and present unique opportunities that appeal to the key value drivers of targeted Chinese investors,” Mr Ferguson said.
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Fellow author, Professor Hans Hendrischke, Professor of Chinese Business &amp; Management at the University of Sydney Business School cited a number of factors in the decline.
“The continued reduction in Chinese investment in Australia reflects a combination of factors, including changing drivers of Chinese ODI such as an increased demand for outbound investment in high value-added sectors to ‘bring back’ expertise and high-quality brands and products that can support China’s industrial upgrading and meet the evolving demands of Chinese middle class consumers. 
"As part of this trend, large strategic investments in resources, energy and infrastructure have given way to smaller investments, into projects that are tactical and directly linked to Chinese consumer market demand. 
"This is particularly evident in the targeting of the Australian healthcare sector by Chinese investors.”
REPORT SUMMARY
Investment by Industry
After a steady growth trajectory since 2015, healthcare was the most significant sector for Chinese investment in 2018 representing 41.7% of total ODI, up 111% from 2017 to AUD 3.4 billion; followed by commercial real estate (36.7%); energy/gas and oil (8.8%); and mining (5.6%).
Healthcare saw three mega deals of over AUD 500 million were recorded in 2018 - from CDH Investment and China Grand Pharm into Sirtex Medical; By-Health into Life-Space Group; and China Jianyin’s Investment into Nature’s Care. There were another five other significant healthcare deals completed including a Chinese/Hong Kong consortium investing into IVF and fertility clinic group, Genea.
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Commercial real estate remained a leading sector for Chinese investment in 2018, accounting for AUD 3 billion of investment (down from AUD 4.4 billion in 2017), continuing to attract a similarly significant proportion (11%) of China’s total global overseas real estate investment. Mixed use development accounted for 40% of total investment inflow, driven by the Yuhu Group’s AUD 1.1 billion acquisition of Dalian Wanda’s property assets in Australia. Investment in the office sector made up 31% of the total, supported by Zone Q’s acquisition of 55 Clarence Street. Residential development sites also continued to account for a significant share (18%) of investment in Australian real estate.
“Australia continues to attract a high level of Chinese investment into commercial real estate, with total investment reaching AUD 3 billion in 2018. While this was 31% down on the 2017 level, the drop was in line with a wider global trend toward lower Chinese outbound investment in other key markets such as the US and UK during 2018. So Australia remains a key destination, taking around 11% of total Chinese outbound real estate investment,” said Ben Burtston, Partner, Head of Research &amp; Consulting, Knight Frank Australia.
“Changing conditions in the residential market have acted to dampen the appetite for large development site acquisitions, although we continue to see a high volume of private investment in the office sector in particular. Looking ahead, we expect to see more Chinese investors venturing beyond Sydney and Melbourne as market conditions improve in the likes of Brisbane, Perth and Adelaide.”
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Three deals in 2018 saw Chinese investment in energy (oil and gas) grow 295% to AUD 726 million, however this was primarily driven by ENN’s acquisition of more shares in Santos for AUD 619 million. The other deals were smaller scale investments in Queensland and Western Australia.
The mining sector accounted for 5.6 percent of the total Chinese investment inflow with five mining deals totalling AUD 464 million in 2018, a decrease of over 90 percent from 2017. Chinese mining investment in Australia returned to 2016 levels after a peak in 2017 due to Yancoal’s AUD 3.4 billion acquisition of Rio Tinto’s thermal coal assets.
Renewable energy recorded four new investments in 2018, totalling just under AUD 400 million, which is a similar level to 2016 and an increase over the AUD 124 million recorded in 2017.
Food and agribusiness investment totaled less than AUD 100 million in 2018, while the only infrastructure and construction transaction recorded was John Holland’s (owned by CCCI) acquisition of engineering group RCR Tomlinson’s rail business.
Investment by Geography
Chinese capital was again focused in NSW in 2018, with the state accounting for over half (53%) of all investment: AUD 4.4 billion. Victoria saw a drop from 36% of total investment in 2017 to 27% in 2018. Investment in South Australia rose to AUD 640 million from AUD 455 million, with the state attracting 8% of total inflows. Queensland investment fell to AUD 396 million in 2018, compared to AUD 667 million last year. Tasmania accounted for 4% of total investment, with deals worth AUD 342 million, while Western Australia saw inflows of AUD 263 million.
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Investment by Deal Size
The trend toward smaller deals continued in 2018 with an average deal value of AUD 111 million, down from AUD 130 million in 2017. The number of deals also dropped to 74 from 100. 85% of deals fell below the AUD 100 million mark. This reflects more deals being done in mid-sized Australian markets in health, technology, services and real estate sectors.
Investment by Ownership
Private investors accounted for 92% of the Chinese deal volume and 97% of deal value in 2018, up from 83% in number and 60% in volume in 2017.
Investment by State Owned Enterprises (SOEs) dropped to just over AUD 1 billion – representing 8% of deal volume and 13% of deal value.
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Chinese Investors in Australia Survey
The Chinese Investors in Australia Survey involved surveys and interviews with senior executives from 56 Chinese-invested companies located in Australia on their perceptions of the Australian investment climate and key challenges they face in Australia. The research was undertaken in February 2019.
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Source: KPMG
Commenting on the survey results, Professor Hendrischke said the investment climate for Chinese companies in Australia was mixed in 2018. While Australia remains a preferred investment destination relative to other countries, Chinese executives are finding it harder to get investment approvals and capital out of China.
“Our local survey also revealed mixed sentiment amongst the perceptions of Chinese investor," Hendrischke noted.
"There was an increase in the number of Chinese executives who told us they feel welcome to invest in Australia - up to 38 percent, compared to 35 percent in 2017. However there was also an increase in the percentage of respondents who feel unwelcome, from 15% to 19%. 
"One area of note is the improving perceptions around Australia’s political environment regarding China, with the number of respondents saying that past year’s political debate has made them more cautious to invest falling to 59%, compared to 70% in 2017.”
“Our survey and interviews with Chinese investors indicate a level of concern around the costs of doing business. Australia continues to be seen by Chinese investors as a more expensive country to operate in than the UK, US and Canada, with challenges noted in areas such as obtaining finance, low profitability, government approvals, finding qualified staff and building relationships with local Australian management,” added the Professor.
Outlook
“Looking forward, it seems Australia’s investment links with China may be increasingly affected by global, rather than purely bilateral dynamics. At the same time, the recent decline in Chinese investment in Australia provides an opportunity to reflect on the role that future Chinese investment should play in Australia’s long-term domestic economy and our economic integration into the Asian region. This should be done with clear focus on the new opportunities for foreign investment which are expected to continue to open up in the China market, including with the implementation of the new Foreign Investment Law and related rules and regulations,” said Mr Ferguson.
“There is still a long journey ahead for many Australian industries that have the potential to receive much greater sums of Chinese investment – but there is much that must be done on both sides to improve the perception of the Australian market to Chinese investors,” he concluded.
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j.ballantyne1990-6AQqhLzZaK

Chinese investment in Australia falls 36.3 percent in 2018

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EXPERT OBSERVER
Australia is closing in on the United States to become the primary destination for Chinese offshore capital as domestic regulation forces Chinese investors diversify their strategies.
Australia is the second largest recipient of Chinese overseas capital after the United States, with US$99 billion since 2008, just lower than the US$138 billion that reached the U.S.
But a change of pace in overall capital allocation in the two markets could see Australia nudge in on its rival.
In line with a slowdown in Chinese outbound investment overall, last year, Chinese investment in Australia declined by 11 percent, while in the U.S. it was 35 percent according to the report Demystifying Chinese Investment in Australia, produced by KPMG and The University of Sydney, in collaboration with JLL.
Overall Chinese investment volumes will continue to fall, but Australia’s position remains strong as it continues to be globally competitive in areas that China wants to grow, including real estate, health and wellbeing, technology and mining resources.
And despite capital controls in their own country, Chinese investors remain bullish, as the sheer size of their economy and GDP, forces them to diversify.
“They are investing with a long-term focus – and this is positive for Australia,” says Ferguson.
Australian real estate continues to hold Chinese interest as volumes remain strong globally, with A$4.4 billion invested in the Australian market last year, equating to 11.5 percent of the country’s total real estate allocation.
In fact, despite the drop in overall outbound investment, the volume of real estate snapped up by Chinese investors globally has held strong. JLL’s 2017 China 12 report shows that its total real estate investment, including land sales, totaled US$32 billion – about 20 percent of total investment – which is close to the US$33 billion invested the previous year.
There has, however, been a noticeable shift away from the trophy assets Chinese investors have been known for, and more towards high quality investments regardless of deal size.
The investor profile has changed, too, with private Chinese companies filling the gap left by state owned enterprises, the number of which dropped for the first time since 2014.
The fundamentals of Australian real estate will ensure it continues to hold its own in the race for Chinese capital, says Michael Zhang, Head of JLL’s China desk in Australia.
“The macroeconomic framework is supportive, while the market is attractive from a global perspective,” Zhang says.
“Economic fundamentals are robust, population growth is solid, market transparency is high, and returns are broadly higher relative to comparable markets globally.”'
Doug Ferguson is the Head of Asia and international markets at KPMG Australia
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Australia competing for Chinese offshore capital

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The businesswoman behind an alleged multimillion-dollar Pilbara Ponzi scheme, Veronica Macpherson, who headed the Macro Group of companies before they were wound up, has been convicted in the Perth Magistrate’s Court of charges including failing to assist a liquidator, failing to deliver books to a liquidator and failing to verify a statement in writing to a liquidator.
She did not appear in court and was convicted in her absence.
In May the Federal Court ordered six of Ms Macpherson’s companies to be wound up. A further 18 companies were wound up in June.
A recent report on the Macro group from the KPMG liquidator Hayden White of KPMG indicated only $300,000 had been found across all of Macro's bank and legal trust accounts.
The liquidators have identified that at least $150 million was successfully raised by the group.
"From our preliminary enquiries and our review of the available books and records, it appears that the Macro Group successfully raised at least $150 milion, $120 million of which was attributable to investor funds, sourced at interest rates as high as 50 percent," KPMG said.
It advised any recovery from Macro's landholdings was "highly uncertain" given the subdued property market.
The ASIC investigation continues into collapsed property developments of Perth businesswoman Veronica MacPherson.
The ASIC paperwork suggests they have lost contact with her having given a Winthrop address.
Macro Realty Developments’ brand ambassador was former rugby champion, <a href="http://www.macrorealty.com.au/2015/11/workin/" target="_blank">David Campese</a>.
The Macro Group was essentially set up to acquire and develop property holdings in Western Australia’s Newman region, with the intention of displacing the existing mine camp infrastructure, to create more permanent communities for the fly-in-fly-out workforce. The group was largely debt funded through non-traditional financiers and from private investors, largely overseas based. 
Liquidators estimated close 2,000 private investors invested about $120 million to the projects run by Ms MacPherson and the Macro Group of companies.
Singaporean and Malaysian investors were promised returns as high as 18 percent yearly from Macro Realty Developments Pte Ltd (MRD).
There were 651 investors from Malaysia, Singapore (981), Australia (31), the United Kingdom (58) and continental Europe (17).
The 244-lot estate sits undeveloped on the outskirts of Newman. There was also a Kurra estate.
"Whilst we continue to explore all available options to maximise the value of the Macro Group’s land holdings in conjunction with the receivers and managers, and other secured creditors, we do not, at this stage, consider a realisation of the assets will produce an outcome sufficient to allow for a return to unsecured creditors or investors," KPMG advised. 
Macro's developments were launched at the height of WA's mining construction boom.
It also came at a time when the state government has its liveable cities in the Pilbara initiative.
When the scheme collapsed, Macpherson’s financial services licence and passport were cancelled and her other active Australian companies were wound up by the Australian Federal Court.
In mid-2016 after Macro was accused of running a Ponzi scheme, MacPherson blogged that it "stemmed from a blackmail threat that we quite correctly rejected."
"We are forcefully fighting back against these unsubstantiated claims that are completely without merit. 
"This has created a diversion from our core mission; to create proper housing, sustainable and thriving communities in the Pilbara, so I thought it best to begin blogging about our journey towards meeting the goals of our initiative and providing some insight into the process of getting there," she blogged.
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Macro liquidators find $300,000 after at least $150 million was raised by the group

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Home prices in Sydney and Melbourne will likely adjust after having been pushed to their peaks but they won’t resemble a ‘bursting of the bubble’, according to KPMG Economics. 
The report, titled Housing affordability: What is driving house prices in Sydney and Melbourne?, says the adjustment in prices is unlikely to be abrupt.
“Our analysis suggests that while short term factors have pushed median dwelling prices for Sydney and Melbourne above their long term equilibrium prices by about 14 percent and 8 percent respectively (as at the end of FY2016), this degree of disequilibrium has been experienced previously in these housing markets and they have managed to return to equilibrium without price movements resembling a ‘bursting of the bubble’,” it said.
Sydney's median home price are expected to decline, minus the effect of inflation, of up to 11 per cent as the cycle turned after 2019, but inflation effects would limit the nominal fall in price from $980,000 to $955,000 in 2021, says the report.
In Melbourne, the likely real decline of 4 per cent would mean a small decline in prices after inflation. The nominal median dwelling price is likely to plateau at $740,000 by June 2019, before peaking around $825,000 in 2021.
The report noted that the movement in Sydney house prices has been more volatile since the GFC, albeit without the same degree of volatility in the supply, demand or cost variables. 
“This data suggests that when the labour market and monetary policy are stable, investing in housing is more attractive as the underlying market risk is lower in these circumstances,” it said.
The report noted that the prospect of home ownership for “many seems to have become even more distant”. 
It said various commentators have blamed a range of factors that have ‘caused’ house prices to rise, including high net international migration, not enough social housing, limitations on the timing and release of new ‘greenfields’ development sites, and even the price of smashed avocado on toast for breakfast at a café. 
KPMG Economics says it found evidence of a long-run relationship between median dwelling prices and variables relating to the stock of dwellings, population and borrowing by residential property investors. It said each of these variables affect prices in different ways and different degrees.
It forecast that the Sydney housing market will experience a greater adjustment than will Melbourne, “but nonetheless this adjustment is unlikely to be abrupt or to significantly overshoot the long run equilibrium price on the downside”. 
In conclusion, it reiterated its solutions suggested in a previous report, Housing Affordability : What can be done about the Great Australian Dream, saying the steps include,
<ul>
<li>CGT reduction: reducing the capital gains tax discount from 50 percent to 25 percent, thereby making property investment marginally less attractive. </li>
<li>Aggregate property tax: abolish stamp duty on the transfer of residential property and conflate rates, land tax, insurance taxes and emergency service levies into a new Property Services Tax.</li>
<li>Systemic reforms aimed at maintaining the supply and diversity of land and housing in established and growth areas, through setting targets, streamlining planning and empowering public supply. </li>
<li>Targeted Reforms aimed at improving access to those groups who are the most excluded from affordable home ownership. This package would focus on more low cost housing, improved assistance to those who need it, and promoting shared equity.</li>
</ul>
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