31-05-2015, 09:11 PM
Chinese real estate investors looking beyond Sydney and Melbourne
27 MAY 2015
Sam Butler
Property investors and developers from China are targeting cities and regions in Australia beyond the ‘gateway’ cities of Sydney and Melbourne.
That's according to a recent update to the Demystifying Chinese Investment in Australia report prepared by KPMG and the University of Sydney Business School and China Studies Centre, featuring analysis from Knight Frank.
The report identifies Brisbane, the Gold Coast and Adelaide, along with regional Victorian and NSW suburbs, as "new destinations offering discounts on prime property … [that] Chinese high net worth investors and developers are looking to".
"[Chinese investors] are … targeting a more diversified group of real estate assets, from hotels and leisure to industrial to student accommodation," the report says.
"There has been increasing activity in non-core areas of Brisbane, such as Newstead and Fortitude Valley, and this is expected to broaden to more metropolitan sites and to the Gold Coast.
"Adelaide and more satellite or regional suburbs of NSW and Victoria will start to gain traction/interest from Chinese [sic] and we should see some stronger price growth occur also."
The Illawarra and Newcastle/Lake Macquarie regions in NSW have seen "solid" increases in home and unit values over the past year, according to CoreLogic RP Data, while Geelong and Latrobe-Gippsland in Victoria also showed steady growth in the same period.
The report identifies that in 2014, almost half of all Chinese outbound direct investment (ODI) was concentrated in commercial real estate transactions, up from 14% in 2013, to $4.37bn in total. It says the China-Australia Free Trade Agreement, for which both countries signed a Declaration of Intent in November 2014, "is expected to accelerate the flow of Chinese investment funds into the Australian property market".
Of the Australian states, NSW still has overwhelmingly the largest share of Chinese real estate investment.
https://www.mywealth.commbank.com.au/pro...ws20150527
27 MAY 2015
Sam Butler
Property investors and developers from China are targeting cities and regions in Australia beyond the ‘gateway’ cities of Sydney and Melbourne.
That's according to a recent update to the Demystifying Chinese Investment in Australia report prepared by KPMG and the University of Sydney Business School and China Studies Centre, featuring analysis from Knight Frank.
The report identifies Brisbane, the Gold Coast and Adelaide, along with regional Victorian and NSW suburbs, as "new destinations offering discounts on prime property … [that] Chinese high net worth investors and developers are looking to".
"[Chinese investors] are … targeting a more diversified group of real estate assets, from hotels and leisure to industrial to student accommodation," the report says.
"There has been increasing activity in non-core areas of Brisbane, such as Newstead and Fortitude Valley, and this is expected to broaden to more metropolitan sites and to the Gold Coast.
"Adelaide and more satellite or regional suburbs of NSW and Victoria will start to gain traction/interest from Chinese [sic] and we should see some stronger price growth occur also."
The Illawarra and Newcastle/Lake Macquarie regions in NSW have seen "solid" increases in home and unit values over the past year, according to CoreLogic RP Data, while Geelong and Latrobe-Gippsland in Victoria also showed steady growth in the same period.
The report identifies that in 2014, almost half of all Chinese outbound direct investment (ODI) was concentrated in commercial real estate transactions, up from 14% in 2013, to $4.37bn in total. It says the China-Australia Free Trade Agreement, for which both countries signed a Declaration of Intent in November 2014, "is expected to accelerate the flow of Chinese investment funds into the Australian property market".
Of the Australian states, NSW still has overwhelmingly the largest share of Chinese real estate investment.
https://www.mywealth.commbank.com.au/pro...ws20150527