Overseas developers such as Fraser & Neave Ltd and Far East Consortium International Ltd have been developing the most number of residential projects in Australia over the last two decades, as they seek geographic diversity and stable demand for properties, according to CBRE.
Currently owning about A$1 billion (S$1.3 billion) worth of land in Australia, foreign companies are planning, building and marketing more than 13,000 apartments, which makes up 32 percent of the market.
It added that Asian developers, led by Singapore and Hong Kong companies, account for 92 percent of projects by overseas firms.
“It’s very difficult for Australian developers to get finance through Australian banks because apartments are regarded as a higher-risk venture,” said Julie Katz, National President of the Urban Development Institute of Australia.
“Without finance, they can’t be offered, so the companies are helping to educate that market that this type of product is available and that there is demand.”
Frasers Property Australia, the property arm of Singapore-listed Fraser & Neave, is developing A$3.5 billion (S$4.6 billion) of projects, which includes a A$2 billion (S$2.6 billion) development in Sydney city centre.
Developed in partnership with Sekisui House Ltd, the Central Park project will offer 2,000 apartments by 2015.
In terms of overseas companies, Singaporean developers made up 37 percent of projects, followed by Hong Kong (20 percent) and Malaysia (11 percent).
“Foreign developers believe, while there are cycles to be mindful of, that inevitably the underlying growth of the Australian economy and the population will provide opportunities to sell finished products,” said David Milton, Managing Director for Residential Projects at CBRE.
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