Chinese property development firm Shanghai United is planning to invest around £1 billion in the Australian real estate market, a new report reveals.
The Financial Times reports that the little-known developer is interested in investing significantly in the Australian market thanks to its relatively low level of political risk, as well as its strong immigration levels.
Yangdong Xu, chief executive of Shanghai United, told the publication that many investors had been put off purchasing property in the US since Donald Trump was elected as president and view Australia as a good alternative.
The company's interest in the real estate market down under continues a growing trend for investment in Australian property from China.
Mr Xu explained: "In Beijing and Shanghai, the land acquisition is very expensive, so developers are thinking the money they pay for the land is almost the money you will get for the houses you sell later. At the moment, it is a bit risky to make decisions."
However, the economy in Australia is seen as a lot more stable, despite some speculation that the property market's boom is set to end. Yet Shanghai United's plans to invest $1 billion in the market in the near future suggest otherwise.
This investment would follow the company's purchase of an InterContinental hotel in the Double Bay area of Sydney last month, which it acquired for $130 million, cementing its place as a new key player in the Australian property market.
To date, Shanghai United has invested a total of $600 million in real estate down under, in both the residential and commercial sectors.
Mr Xu explained to the Financial Times that the $1 billion it has set aside for investing in Australia in the future will be spent over the coming decade. Indeed, he even stated that this was "a conservative prediction", suggesting that the actual total could be much higher.
The Financial Times reports that the little-known developer is interested in investing significantly in the Australian market thanks to its relatively low level of political risk, as well as its strong immigration levels.
Yangdong Xu, chief executive of Shanghai United, told the publication that many investors had been put off purchasing property in the US since Donald Trump was elected as president and view Australia as a good alternative.
The company's interest in the real estate market down under continues a growing trend for investment in Australian property from China.
Mr Xu explained: "In Beijing and Shanghai, the land acquisition is very expensive, so developers are thinking the money they pay for the land is almost the money you will get for the houses you sell later. At the moment, it is a bit risky to make decisions."
However, the economy in Australia is seen as a lot more stable, despite some speculation that the property market's boom is set to end. Yet Shanghai United's plans to invest $1 billion in the market in the near future suggest otherwise.
This investment would follow the company's purchase of an InterContinental hotel in the Double Bay area of Sydney last month, which it acquired for $130 million, cementing its place as a new key player in the Australian property market.
To date, Shanghai United has invested a total of $600 million in real estate down under, in both the residential and commercial sectors.
Mr Xu explained to the Financial Times that the $1 billion it has set aside for investing in Australia in the future will be spent over the coming decade. Indeed, he even stated that this was "a conservative prediction", suggesting that the actual total could be much higher.
