Chinese developers exit Australian market as property crisis worsens in China

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Chinese developer Country Garden invested billions buying and developing prime sites in Australia. Now, it is among several debt-laden developers selling or downsizing their portfolios.

abc.net.au/news/chinese-developers-exit-australia-property-meltdown-in-china/102855266Top Chinese developers are quickly selling or downsizing their Australian operations amid a worsening property crisis back home.China's property meltdown has seen many developers forced to liquidate assets

Mark Wizel is the director of Wizel Property Group and has worked in commercial real estate for 15 years."After 2013, a lot of the active Chinese capital moved more into income-producing assets," he added. And now Country Garden is selling a portion of the Sydney Wilton Greens project and a portion of its Windermere estate in Melbourne.Analysts say these sales will hold up development, impacting the number of new homes coming onto the market."Chinese property developers have had a tendency in the past to build high density dwellings, the apartment towers, that's what they're extraordinarily good at," property analyst Louis Christopher said.

Mr Christopher said the number of current dwelling approvals suggests commencements are about to fall further, to around 140,000 commencements . "What is in the pipeline is already behind schedule in terms what we need and what Labor has promised."After almost two decades of a housing boom in China, Beijing introduced a series of measures to crack down on the sector, limiting the amount developers can borrower and reducing bad debt levels.Betty Wang researches China's macroeconomic trends and policies, especially on the property market.

 

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