Chinese property investors are eyeing fringe areas beyond their comfort zone in Sydney’s south-west, recent data revealed.
Edmondson Park topped the state as the most popular suburb for developments among Chinese buyers, followed by Potts Point and Chatswood, according to statistics from REA Group, which runs realestate.com.au and the Chinese version myfun.com.
The western Sydney town, located 40km from the city centre, is also the only NSW suburb to make it on the national top ten list of development suburbs appealing to Chinese investors.
The area is on the rise to becoming one of Sydney’s fringe-suburb hubs, with the Edmondson Park town centre (of which construction has begun), the recently opened Edmondson Park train station and Sydney’s second airport confirmed for Badgerys Creek.
The infrastructure upgrades have also led way to increased residential developments, including land sales and house-and-land package deals, to capitalise on western Sydney’s abundant land supply.
REA Group Chief Economist Nerida Conisbee said the data indicated that Chinese investors were diversifying their investment property types.
“This demand for diversity also means that China based property seekers are not just interested in apartments. Community and house-and-land developments also feature strongly,” she said.
“Many of the most popular house and land developments are also located in lower cost markets.
“Similar to national trends, this reflects the growing diversity of Chinese buyers in Australia.”
And it’s not just individual foreign investors entering the semi-regional western Sydney market; Chinese developers have also seen success in the area.
Set to be the largest masterplanned community in the Edmondson Park area, Shanghai-based Dahua Group’s $1 billion project New Breeze sold all 85 of its land lots in its first release in April.
“We were not surprised by the outstanding success of the first stage release in April,” Development Director of New Breeze and APP Corporation Kith Clark said.
“New Breeze purchasers were drawn to its proximity to the new Edmondson Park train station which is 400 metres from the estate’s entrance.”
Real estate experts are seeing a cooling in Chinese investor interest in NSW property, with REA Group reporting almost a 25 per cent drop in visits from China on myfun.com.
Non-residents buying residential property in NSW are facing surcharges of 4 per cent in stamp duty and 0.75 per cent in land tax, the state government announced this month.
My Conisbee said the slowing of international sales means there would be less developments, especially of new apartments.
“Developers need a high pre-sale level; a drop-off in sales to either local investors or offshore investors means development won’t proceed.
“You won’t get the same level of completion [as before the restrictions were introduced].
“In Sydney, it’s not a good thing because Sydney has long way to catch up in terms of housing supply. But in cities like Melbourne or Gold Coast, it may be a good thing.”
SydneyPropertyExperts.com produces real estate content targeted specifically towards the Chinese community; including market trends, new developments, suburb hot spots and foreign investment issues with the expert knowledge and analysis of NewsCorp real estate journalists.