Chinese Investor Frenzy Adds Fuel to Inner-City Sydney Apartment Boom

THOUSANDS of Chinese investors piled into a property expo in Sydney’s Town Hall on the weekend as analysts tip overseas buyers will keep the city’s inner city apartment market booming for the next two years.

Close to 50 companies jockeyed for the attention of the cashed up Chinese buyers, with apartment projects being spruiked by development giants Greenland Holding Group, MAB Corporation and Frasers Property Australia

About 50 companies jockeyed for the attention of the cashed-up Chinese buyers, with apartment projects being spruiked by development giants Greenland Holding Group, MAB Corporation and Frasers Property Australia.

The property frenzy came as Sydney and Melbourne kicked off the spring auction season with strong results, posting clearance rates of 83.4 per cent and 75.3 per cent respectively on total sales of $545.7 million, according to preliminary figures released by Australian Property Monitors.

“The (auction) results were extraordinarily strong,” said APM senior economist Andrew Wilson. “The Sydney market just keeps rising. Certainly there is no sign of a waning of activity.”

He said a lot of the buyer ­action was driven by investors rather than owner-occupiers.

At the Sydney property expo Maggie Wang bought a house in Bellevue Hill, in Sydney’s east, for about $6m.

Ms Wang, who migrated three years ago, ran an IT and property development company in China and had recently started a wedding planner business in Australia. She said Chinese interest in Australian property was about more than just making money.

“People like the lifestyle, the country and the environment, it’s not just about investment,” Ms Wang said.

Another buyer, 26-year-old Crystal, bought a home in one of Sydney’s wealthiest suburbs, Vaucluse, for more than $5m, with plans to buy more Australian investment properties.

The expo also featured agencies, such as ABC World, which give Chinese investors advice on migrating to Australia through avenues such as the Significant Investor Visa. The visa, implemented by the former federal Labor government, allows foreigners who invest more than $5m in Australia the potential for permanent residency.

Black Diamondz director Monika Tu, who represents wealthy Chinese looking to buy Australian homes, said the visa’s introduction had led to a surge in interest for local trophy homes worth more than $5m.

Ms Tu said inquires to her agency from Chinese property hunters had increased by about 50 per cent this year.

Also at the expo, one of China’s largest developers, Greenland Holding Group, held expressions of interest for its second local project, the $200m ­Lucent apartment tower in North Sydney, while Singaporean-backed Frasers Property Australia marketed apartments at its $2 billion Central Park project at Sydney’s inner-city Chippendale.

The high investor demand for off-the-plan apartments is ­expected to keep Sydney’s inner-city market in boom mode for the next two years, according to forecaster BIS Shrapnel.

BIS Shrapnel said about 5800 apartments were under construction in Sydney while about 11,500 new apartments would be completed over the next three years — the biggest number in the city’s history. CBRE managing director of residential projects David Milton said the uplift in interest from Chinese investors allowed local apartment developments to stack up financially.

Sustainable Sydney Walking Tour - Australia Going Green

Get out and about green building style with the new Sustainable Sydney Walking Tour.

Co-developed by the Green Building Council of Australia (GBCA) and Better Buildings Partnership, the Sustainable Sydney Walking Tour is a self-guided, street-level exploration of some of Sydney’s greenest buildings.

Walk the city while learning how green buildings are contributing to the sustainability of the inner-city community and leading by green example in the design and construction of our built environment.

The walking tour takes approximately two hours if you choose to visit all six landmark Green Star buildings.

New Years Eve Sydney - News and Information for 2013 NNE!

 

Sydney New Year’s Eve is one of the most spectacular events in the world. It is the time when the world’s gaze turns to Sydney and our spectacular Midnight Fireworks Display, featuring the iconic Sydney Harbour Bridge.

Visit Sydney in the spotlight for a New Year’s Eve experience you’ll never forget. Join the 1.6 million people who line the harbour as the city skyline lights up.

Whether it’s your first time to Sydney, or you live around the corner, experience the city as it comes alive in January with the Sydney Festival. With the harbour and foreshore as the focal point, Sydney invites you to take part and share in the magic.

Remember to book your accommodation early to avoid disappointment. For information about accommodation, attractions and tours and other general tourist information, visit sydney.com

Don’t forget to take in the distinct character of the city’s villages, too: from designer-led Surry Hills, to hip and happening Newtown; elegant cafés in Potts Point to the theatre district in Walsh Bay, there’s something to suit all tastes. Learn more about Sydney and its 10 villages in our unique pocket guide, Slices of Sydney.

The City of Sydney welcomes the many international and Australian visitors who will be visiting Sydney to welcome in the New Year. Start planning your visit now!

VISITOR INFORMATION

Things to do in NSW

A NSW holiday offers adventure, food and wine, beaches and surfing, drives and road trips.

Great deals in NSW

Check out great holiday deals available now across the state.

Getting around

Build your own map and driving directions to travel around NSW.

GETTING AROUND SYDNEY

The best way to get to Sydney New Year’s Eve is by public transport. Visit 131500.com.au/events or call 13 15 00 for public transport information for Sydney’s bus, ferry and train networks.

There’s no better way to explore Sydney Harbour than by ferry, so make sure you use one of the regular services or take a water taxi. You can also take advantage of Sydney’s cycleways and ride your bike to the event. 

Visit the Sydney Cycleways website to find out the best route from your place.

Visit sydney.com/destinations/sydney/transport

Sydney's Housing Market to Continue to Grow

Sydney is Australia's most populous city and its housing sector offers investors unique opportunities with the security that comes with investing in a large and rapidly expanding market.

Property prices in Sydney have increased 25 per cent in the last four years, during which many other housing markets around the world have stagnated or even gone backwards.

The reason that Sydney's housing prices have continued to rise is simple - more people want to live there. Famous for its landmark Harbour Bridge and Opera House, Sydney is the business and financial capital of Australia, with an ideal climate and a relaxed yet cosmopolitan lifestyle.

Sydney has nearly five million residents and its annual population growth rate of 1.6 per cent is higher than the Australian average. It is also higher than that of any major western city outside Australia, yet less than half of this increase comes from births.

Most new Sydneysiders are overseas arrivals who come to Australia to start a new or better life, seeking employment or education opportunities for themselves or their children. They have created a steady demand for around 30,000 more dwellings each year, pushing up prices and making Sydney the most expensive city in Australia to buy a house.

The median price of a Sydney house is now around A$620,000 (S$786,740) and it is rising. Landed properties can be purchased on the outskirts of Sydney for around half this amount, but they are located far from the city centre. Sydney's idyllic harbour side location brings problems, as much of the land is locked away in parks or reserves and there is less available for housing. The urban footprint has spread as far south, north and west as there is land available.

It is almost impossible for overseas arrivals to buy a home until they settle and establish themselves, which can take many years. This has led to a rise in Sydney's rents, which are higher than any other major city in Australia.

High rents and prices have changed Sydney's landscape. They have led to the abandonment of the dream of a landed home for many young Sydneysiders and led to a boom in apartment living. Over half of Sydney's dwellings are apartments or "home units" as the locals call them.

The new medium and high-rise apartment blocks contain gymnasiums, swimming pools and garden barbecue areas. The units are fitted out to attract renters, while their design lowers maintenance costs for investors. Many of the suburbs where this transformation is occurring - such as Pyrmont, Ultimo, Camperdown, Double Bay and Broadway - are located close to the central business district and in the urban centre itself.

What makes these dwellings ideal for investors is that prices for home units are still less than 70 per cent of those of similar sized houses.

The Sydney inner urban market is unique because there are fewer development projects in the pipeline than there are in other cities such as Melbourne even as the rental demand is far higher. Rents in these areas are escalating as a result and housing investors from Singapore can buy off-the-plan units with confidence, knowing that both the rental yield and the value of their investment are likely to rise in the coming years.

Crowe to send Ben Hur sales skyrocketing - Sydney Tourist

Ticket sales for the live stadium show Ben Hur are expected to skyrocket after Oscar winner Russell Crowe decided to join the 200-strong cast for two Sydney performances.

Crowe, who won an Oscar playing the Roman commander Maximus in Ridley Scott's 2000 epic film Gladiator, will be the narrator of the production, which tells the story of a galley slave who dared to defy the Roman Empire.

"It's not a play. It's not a musical. It's a spectacle. And you know you've got your chariot races, you've got a boat being boarded by female pirates, Pontius Pilate making his decision over Christ's future, so it's gigantic, it's amazing," Crowe said in Sydney on Tuesday.

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