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08-07-2014, 08:55 AM
No end in sight for foreign cash
Samantha Hutchinson
373 words
8 Jul 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
A wave of investment from China and south-east Asia has boosted competition for Australian development sites to a fever pitch.
But the buoyant market conditions aren't confined to Australia; developers in major European and Asian capital cities are being forced to fight harder to secure land, Frasers Property Australia chairman Stanley Quek said.
"It's difficult for developers all over the world, this flush of money that's starting to hit . . . there's a lot of liquidity around," he said.
"All the big developers like Greenland are [in Australia] now, but they're in London and the rest of the world too . . . everywhere you go, you will find it's a difficult market to acquire anything."
One of Australia's most prominent residential developers, Frasers Property Australia is controlled by Frasers Centrepoint, the Singapore-based, international developer controlled by Thailand's third-richest man, Charoen Sirivadhanabhakdi.
Dr Quek is dismissive of reports competition for local development sites is pushing prices too high. "I think prices are fine, and I think they are sustainable . . . quite clearly everywhere in the world prices have gone up, and there's still some growth to go," he said. "London prices particularly have gone up quite highly, and the flow of money into safe havens like Singapore has also pushed prices there tremendously high." Dr Quek spoke to The Australian Financial Review from the $2 billion Central Park project, on the same day French botanist Patric Blanc, who created its striking facade of green walls or 'vertical gardens, presented his work.
His comments come at the same time the group is awaiting the outcome of its $2.6 billion cash bid for local residential and industrial developer Australand. He could not be drawn to comment on the offer, but reaffirmed his bullishness on prospects for local house prices, particularly in Sydney and Brisbane. "The market is strong, and that's definitely because more people are moving closer into the city. I don't think there will be a slowdown at all," he said. Frasers Property and joint venture partner Sekisui House have generated more than $1.1 billion in sales so far at the Central Park precinct.
Fairfax Media Management Pty Limited
Document AFNR000020140707ea780001f
Samantha Hutchinson
373 words
8 Jul 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
A wave of investment from China and south-east Asia has boosted competition for Australian development sites to a fever pitch.
But the buoyant market conditions aren't confined to Australia; developers in major European and Asian capital cities are being forced to fight harder to secure land, Frasers Property Australia chairman Stanley Quek said.
"It's difficult for developers all over the world, this flush of money that's starting to hit . . . there's a lot of liquidity around," he said.
"All the big developers like Greenland are [in Australia] now, but they're in London and the rest of the world too . . . everywhere you go, you will find it's a difficult market to acquire anything."
One of Australia's most prominent residential developers, Frasers Property Australia is controlled by Frasers Centrepoint, the Singapore-based, international developer controlled by Thailand's third-richest man, Charoen Sirivadhanabhakdi.
Dr Quek is dismissive of reports competition for local development sites is pushing prices too high. "I think prices are fine, and I think they are sustainable . . . quite clearly everywhere in the world prices have gone up, and there's still some growth to go," he said. "London prices particularly have gone up quite highly, and the flow of money into safe havens like Singapore has also pushed prices there tremendously high." Dr Quek spoke to The Australian Financial Review from the $2 billion Central Park project, on the same day French botanist Patric Blanc, who created its striking facade of green walls or 'vertical gardens, presented his work.
His comments come at the same time the group is awaiting the outcome of its $2.6 billion cash bid for local residential and industrial developer Australand. He could not be drawn to comment on the offer, but reaffirmed his bullishness on prospects for local house prices, particularly in Sydney and Brisbane. "The market is strong, and that's definitely because more people are moving closer into the city. I don't think there will be a slowdown at all," he said. Frasers Property and joint venture partner Sekisui House have generated more than $1.1 billion in sales so far at the Central Park precinct.
Fairfax Media Management Pty Limited
Document AFNR000020140707ea780001f