Changes to what constitutes a ‘new residential dwelling’ by the Foreign Investment Review Board has added a layer of uncertainty for developers across the Nation who will begin to reassess their project plans for 2016 and beyond.
Where previously developers faced little resistance in demolishing an old dwelling to make way for a new build, changes to the framework for overseas investors mean that repurposing existing land to create a single, new house will generally be no longer accepted.
As a result, both developers and agents stand to lose a significant proportion of the market for luxury homes, with Chinese investors in particular a core demographic that prestige agents pitch to during the sale.
