CHINESE buyers have begun to ramp up activity in the Sydney prestige property market, with the sale of an $8.5 million Vaucluse house this week and several other deals currently in the works.
The five-bedroom house, at 66 Captain Pipers Road, had been on the market for nine months with its current agent before reportedly being purchased by Minqin Wang, the wife of a transportation company head in the Shanxi province.
When listing the property, Richardson & Wrench Double Bay principal Michael Dunn knew it would appeal to the Asian market.
"It was a house with very modern finishes, great accommodation, great views, there was a garage in there for five cars," he said. "The significant investor visa has opened the door for a number of buyers. In the majority of cases, they are looking for the iconic view of the opera house or Harbour Bridge and this house had both of those."
Meanwhile, Anthony Walls from Max Walls International Real Estate is currently in the final stages of a $23 million sale on a block of 12 apartments near Manly.
The buyer is a Chinese manufacturer who supplies shoes to the Chinese army, which is believed to be just shy of 1.5 million in number.
In addition to the apartments, the buyer is targeting a $10 million property at Elanora Heights and 32 The Serpentine, Bilgola Beach, where negotiations are currently at $8 million.
"All the people I'm dealing with are in manufacturing," said Mr Walls. "The team comes out and are interested in a range of commercial buildings and luxury properties right across Sydney. The difference between them and Australian buyers is that they're not as hell bent on the Point Piper style locations. They look at the northern beaches and Chatswood; anywhere within an hour of the airport and close to the city."
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The Vaucluse sale was thought to be Sydney's first residential deal with the holder of a significant investor visa; which provides residency to foreign applicants who are able to maintain a $5 million investment in the local economy. So far, just 10 have been approved and agents are expecting an increase in prestige sales as more begin to filter through.
The boost will complement interest from expats, based on the falling Aussie dollar.
"The legislation has been in place for some time and we are just now starting to see some activity at that level," said Mr Dunn. "This is just one element of an improving market, which was very much in the doldrums last year. Four of our most recent sales have been either to expats or offshore buyers. We sold 1A Wentworth Pl, Point Piper to an expat for $11.4 million, another in Bellevue Hill for $6 million and a waterfront in Vaucluse for $11 million. There's a broad improvement in the market."
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