Featured Investment from Chinese buyers

Investment from Chinese buyers

There seems to be so much hype at present around the Chinese investors however they have yet to discover the Peninsula of the Central Coast. There is a new high rise development approved in Gosford which should commence construction by the end of this year which will be the first significant residential project to come out of the ground for Gosford.

Some facts about Chinese investment in Australia from a report put out by KPMG/University of Sydney/Knight Frank

  • The gateway cities of Australia, namely Sydney and Melbourne, have been the most active markets for Chinese investors
  • For the first time, nearly half of Chinese investment was concentrated in commercial real estate transactions, up from 14% in 2013.
  • NSW attracted 72% of investment
  • Fifty-one private deals were recorded in 2014, compared to twenty five in 2013.
  • Chinese direct investment in Australia in 2014 was mainly focused on commercial real estate, infrastructure and for the first time, a material investment in the tourism and leisure sectors.

For many wealthy Chinese, the risk of buying property in unfamiliar overseas markets such as Australia can be offset by buying projects offered by Chinese developers, providing a sense of both familiarity and pride. However, our recent conversations with several pioneering Chinese developers revealed that they are increasingly realising the need not just to cater for Chinese buyers, but to tailor project design elements and marketing strategies to the broader local markets.
After heavy investment in prime office buildings and subsequent yield compression in gateway cities, Chinese investors have begun to look increasingly at opportunities in other key cities and other property sectors and importantly in suburban locations in metropolitan Sydney, Brisbane and Melbourne, not just within the CBD and fringe markets.

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