Investments in China are returning to the Melbourne market
Renewed interest from international investors has seen Chinese capital flowing back into Melbourne’s commercial real estate market at the fastest pace in five years.
Chao Zang, a partner at Stonebridge Property Group, Asia Practice, said the company sold six properties worth a total of $12 million to new Chinese investors in the past week alone. These included stores at Aston Village in Craigieburn and 1/674-680 Glenferrie Road, Hawthorn for $3.85 million.
He said there was also renewed interest in larger development facilities. “We met with four very high net worth Chinese buyers this year, each looking to spend more than $30 million developing passive investment opportunities,” Zang said.
“We haven’t seen so much new Chinese capital coming into the country since 2017.”
Chang said China’s lifting of COVID-19 restrictions coupled with pent-up demand from the pandemic appears to be a catalyst for capital inflows.
“With the easing of border restrictions between China and Australia and the influx of students returning to Victoria, we expected an increase in demand from Asian buyers, but were surprised to see such a strong desire to buy,” he said.
“We haven’t seen that much new Chinese capital coming into the country since 2017.”
Stonebridge Property Group Partner, Asia Practice, Chao Zang.
Stonebridge is marketing two development sites in Box Hill and has received more than 90 inquiries for each property during its campaigns, including interest from wealthy Chinese investors.
According to the 2023 ANREV Investment Intentions Survey, Sydney and Melbourne ousted Tokyo among the top three investment destinations for institutional investors in Asia Pacific this year, with respondents saying they will increase their allocations to Asia Pacific real estate over the next two years increase years.
Josh Rutman, Head of Capital Markets, Victoria at JLL, says international investors are expected to play a significant role in boosting deal activity in the second half of 2023, despite a short-term contraction in transaction volume in the first quarter.
https://www.smh.com.au/business/companies/china-capital-flowing-back-into-property-market-20230310-p5cr3q.html?ref=rss&utm_medium=rss&utm_source=rss_business Investments in China are returning to the Melbourne market