Chinese Developers Are Buying More Properties In Australia
In a report by Domain, Chinese companies picked up nearly 40% of the $5 billion worth of residential development properties that were offered for sale in Australia in 2016. Many of these developers are snapping up properties in remote areas of Sydney and Melbourne, a trend that is expected to continue this year.
According to the information obtained by Knight Frank’s “The Rise of Chinese Developers in Australia” report, Chinese companies bought $2.4 billion worth of real estate properties last year. The figure represented about 38% of the total value of properties sold during that time. Knight Frank’s Chief Michelle Ciesielski emphasized that the figure was higher than the previous year wherein firms from China only accounted for 12% of the total transactions in 2015. Despite the notable rise from 2015 to 2016, the figure reported last year failed to surpass the total value of transactions which reached record highs in 2014. It is also incontestable that their presence in the nation’s real estate segment has improved tremendously. When Chinese developers first started to purchase properties in Australia, they originally wanted to build high-rise structures. This goal changed and shifted into lower-density developments as they snap up an increasing number of properties in Australia. The size of the properties also expanded as time passed by and it is now more than 18 times bigger at 21,045 square meters last year.
Countless Chinese firms expanded their influence in their selected suburbs during the same period. Poly Group, for example, obtained 30,610 square meter property in Werrington, nearly 50 kilometers West of Sydney’s CBD. It wants to use the area for the development of 68 residences. In addition to that, Poly Group also picked up properties in Epping, Melbourne CBD, and South Yarra. Dahua Group is also one Chinese company that is buying a lot of properties in the nation. The firm is currently working on several projects across the nation. One of which is located about 45 kilometers South West of Bardia and they also have another project in about 75 kilometers from the central business district Menangle Park. It also working on development project about 25 kilometers away from the South West of Melbourne in Point Cook.
Chiwayland Group is also making a entry in Australia’s real estate industry. It has apartment projects in areas like Roseville, Parramatta, and Brisane. The firm bought a 114,270 square meter property in Caddens for $40 million. It plans to use the site for the construction of around 400 apartments and 364 townhouses. These residential units target local buyers and tourists alike who wish to settle in the area once it is completed.
Australia’s real estate sector is expected to engage in more transactions with Chinese developers. Aquasland purchased 12.5 hectares of land in Sydney’s north-west Baulkham Hills for nearly $90 million in January. The firm wants to construct 71 houses and 75 medium-density on that property. BIS Shrapnel Senior Manager Residential Angie Zigomanis said it was strange for foreign developers to buy these much properties all at once. It was also noted that these companies do not seem to have plans of reducing their purchases. Besides that, they have started to look for other alternatives apart from building apartments. Chinese companies moved their focus on building houses and land estates, which is why they need vast properties, which are usually unused grounds within the suburbs.