Is China Still a Major Player in Australia’s Luxury Property Market?

Is China Still a Major Player in Australia’s Luxury Property Market? Manish Khanna
Manish Khanna
Thursday 05 Apr 2018

For the past few years, Chinese Investors and real estate development giants have been doing pretty well in Australia’s luxury property market. Despite the restrictions on foreign company investment, China is still playing a major role in Australia’s property market. It took around one-third of national development sites - reflecting a strong presence in the existing market.  

The Dominance of China in Australian Luxury Property Market

According to some reports, Chinese investment performance in Australia has been recorded to AUD$2.02 billion in development site sales during 2017.

While there is a huge dominance of Chinese investors when it comes to buying million dollar mansions in the hotspots of Australia, you may find multiple real estate development companies who wish to develop skyscrapers in these affluent areas. You can visit million dollar mansions web portal if you are looking for highly-prestigious apartments, villas or mansions in the highly-developed locations of Australia.  

However, due to stiff lending regulations in both the countries, the international investment market has declined in the past few years. In Australia, APRA has encouraged financial lending companies to impose strict regulations on the international investors, while in the Chinese government has moderated the capital outflow with the Central Bank of China to impose new rules for the companies who want a loan for overseas properties.

Despite all this, there are some amazing proposals for luxury residential projects by Chinese developers that have proved China is still a key player in Australia’s Luxury Real Estate Market. One of them is Flinders Bank that will have three luxurious towers with a ravishing precinct for residents and visitors on the banks of Yarra, Melbourne.

Flinders Bank: A luxury skyscraper, defining a high living standard in Australia

Recently, two most popular Chinese development companies, China Century Group and Exhibition and Travel Group, have emerged an association to develop an $800 million luxurious apartment and hotel complex on the banks of the Yarra, which is one of the most opulent inner suburbs of Melbourne, Victoria.  

So far, it would be one of the most credible developments in the Australian luxury real estate market. Since it is the first project for the partner’s Australian development platform, Century Group Aus, there would be something new in terms of smart building technologies, new architectural designs and infrastructure developments.

Well, there will be three terraced skyscrapers of up to 33 levels, which will be designed by Fender Katsalidis Architects (FKA). It is Melbourne’s leading architecture firm that has been developing exceptional commercial and residential buildings in Melbourne and other major cities of Australia. They have taken the responsibility to create this million dollar apartment and hotel complex that can reflect the essence of true craftsmanship.  

Here, the idea of Chinese developers is to streamline innovative ideas of new architectures in order to revamp the 2,100 square metre ground area of the river by developing public and retail plaza along with three skyscrapers on the Former Convention Center Site.  

Two years ago, the 4,500sq m site was purchased by Nuway Wy, a leading Chinese developer for $97 million and came with the approval for 1100 apartments in three towers. Century Group Aus liked this proposal and acquired the site at the end of 2016.

However, they have dropped this idea and revised their development strategies again. With the superior guidance of Connie Wu, a new plan has been proposed named as Flinders Bank. It will feature 500 prestigious apartments, 167 five-star hotel rooms and 2,100 sq metres retail and public precinct. The plan looks promising and has all the potential to lift the living standard of the people, nestled in this part of the city.

The Century Group Aus has been planning for the simultaneous construction of all three towers at the beginning of 2019 and is expected to complete in 2021. According to them, Flinders Bank comprises of the following features:

  • In Tower one, there will be 26 levels with a ground + three-level podium. This will include 190 apartments, situated on the eastern side of the site, revealing mesmerising harbour views.
  • In 2nd tower, there will be 33 levels with a ground + four-level podium. It will feature 170 luxury hotel rooms and 237 apartments, nestled on the western side of the site (Flinders Street)
  • There will be 26 levels with a ground + three-level podium in the third tower. It will be located on the western side.
  • According to reports, around 60 percent of the tower will feature two-bedroom, two-bathroom apartments with an approx size of 80 sq metres.
  • Plus, there will be a 45 sq metres of ground floor retail space in the tower two while the remaining tower podiums will feature 900 sq metres of food and beverage retail, 300 sq metres of office space and another 350 sq metres of heal-based retail.

Apart from residential and retail developments, the public realm will be developed further, and a brand new open-air plaza will be included within the precinct as per the revised plans enclosed by Century Group Aus.

According to the founding partner of Fender Katsalidis, “Flinders Bank will contribute enormously to the betterment of this part of the city, where a new DNA is emerging, and lots of new life is being created”. It will be a great opportunity for potential luxury property investors and buyers to invest their money in this opulent skyscraper that is projected to complete in the mid of 2021.

This will create a complete new precinct for the people who never compromise with their living standards. Plus, it will improve the connectivity of Docklands to the CBD, which automatically opens the door for better business and job opportunities.

Apart from this, the chief executive of Century Group Aus said that the company is looking to build solid relationships with the world’s most prestigious hotels to strengthen the accommodation sector in the city.

Better the Quality, Higher the Demand for Million Dollar Apartments

Over the last few years, Australian property market has been shifting towards larger, spacious, opulent and better quality apartments. The demand for luxury properties has been increasing among both the national as well as international investors.  

So, according to Ms Connie Wu, it becomes imperative for this prestigious project to feature all the high-end facilities, and robotic technology to enhance the way people live their high-standard lifestyle.

While these factors will play a decisive role, Ms. Wu has brought her own experience and innovative approach to develop better landscape buildings the way she imagined.

To achieve higher goals, Fender Katsalidis and Century Group Aus have been producing top-notch designs that will reflect the sense of creativity, aestheticism and superior craftsmanship. The architects will use best quality of products and keenly work on their performance during the design process, from start to end.

Everything has already been planned, and the construction is expected to start in early 2019, which will be conducted in three stages. Hopefully, Flinders Bank would benefit those who want to invest their capital in Australian luxury property market in the coming future.