Commercial selling agent Mark Wizel told the AFR Chinese developers “sell the end product in the same way that any local developer sells – local sales and also offshore investor sales”.
David Wu, the director of a China based developer, Paragon, expects “the lion’s share” of a major project it is marketing in Carlton, to sell to overseas investors “in spite of the dominance of owner-occupiers in the suburb”.
Thomsons Lawyers property partner Eu Ming Lim said Chinese developers are attracted to Australian markets because of the country’s reliable economic and commercial environment and the clarity of our planning system.
“Mainland Chinese developers who come here aren’t listed companies like elsewhere in south-east Asia,” Mr Lim said. “It’s individuals and private companies diversifying out of manufacturing or other businesses.”
Foreign ownership laws previously restricted developers to selling 50 per cent of their projects to overseas investors. Thanks to the Gillard Rudd government there is now no limit, provided more than 100 flats are within a development.
Projects with an end value of less than $50 million also require no Foreign Investment Review Board approval.