Shanghai United Real Estate is planning to invest at least A$1 billion in Australia over the next decade, amid a slowdown in the Chinese economy, London's Financial Times reported, citing Yangdong Xu, the company's CEO.
The company has so far invested A$600m in residential and commercial developments in Australia, the report noted. In May, Shanghai United purchased the Intercontinental Sydney Double Bay hotel in Sydney, for A$130 million, in partnership with fellow Chinese company Zobon Real Estate.
The report cited Xu as saying that Australia has a "stable environment, strong immigration levels and lower political risk," versus other western markets. It added, however, that the uptick in Asian developers in Australia over the past five years had driven up land prices in Sydney and Melbourne to "unsustainable levels." Xu said he was not concerned about the state of Sydney's housing market, according to the report.
As of June 2, US$1 was equivalent to 1.34 Australian dollars.