Lucy Macken

Sweet spot: This house on Lucretia Road, Longueville sold to a Chinese buyer last week for $7.6 million — a record for the suburb.

The number of Chinese buyers being approved under the Significant Investor Visa scheme has surged this year, with suburb records being toppled.

Agents report the $3 million to $8 million range is now the sweet spot for offshore Asian buyers, but there has been a notable absence of Chinese activity in the $20 million-plus trophy market this year.

Department of Immigration figures show a continued rise in foreign investment, with 343 Significant Investor Visa application approvals since the scheme started in November 2012. More than 220 of those visas were approved this year and 90 per cent of them were to buyers from China.

Golden ticket: The most recent purchase under the Significant Investor Visa scheme was a house on McLeod Street, Mosman, which sold last week for more than $6 million.

Even those buyers who can afford the $30 million or $40 million homes are going for the more affordable homes because getting money out of China is too hard, said immigration agent Sandra Li, the owner and founder of AOYE Immigration Services.

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It’s easier for investors to buy in the $3 million to $8 million market because it’s easier to exchange that sort of money with friends who are out of the country.

China’s foreign exchange rules limit citizens to $US50,000 ($53,600) a year overseas.

That cap has not thwarted the Longueville housing market.

A Chinese buyer set a suburb record in Longueville last week when the waterfront home of Matilda Cruises founder Tim Lloyd sold pre-auction for $7.6 million, industry sources say.

McGrath’s Brent Courtney would not comment on the price but said the 1200-square-metre property sold for well in excess of its $6.5 million-plus guide to set a suburb record.

The previous high was set in 2005 at $7.4 million for a 3600-square-metre waterfront reserve block.

Longueville’s non-waterfront record hit a new high last month thanks to a Shanghai buyer when the Arabella Street home of Michelle and Michael Cameron, head of GPT Group, sold for $7.25 million on its first day on the market, again through Mr Courtney.

The most recent purchase by a SIV-approved buyer (often referred to as a golden ticket holder) exchanged late last week. The Mosman Bay waterfront mansion on McLeod Street sold for well in excess of $6 million, through Belle Property Mosman’s Tim Foote.

Mosman locals are again dominating the prestige market, but McGrath Mosman’s Michael Coombs said about 30 per cent of the top sales were still to Chinese buyers. Clients are saying that China is tightening its controls on people getting money out of China, he said.

Meanwhile, the $20 million-plus market has missed out on such offshore attention. Interest and even inquiry levels in our trophy market from Chinese buyers has completely dried up this year, agent Alison Coopes said.

The three highest sales so far this year, worth a combined $100 million and all in Point Piper have sold since June, were all to local buyers. 

Last year’s trophy market was dominated by Chinese buyers for the Point Piper waterfront mansion Altona for $52 million and the $33.5 million sale of the so-called Bang & Olufsen mansion.

Just as specialist Chinese investment and financial services firms are springing up to capitalise on the wealthy Chinese buyer market, Sydney’s Chinese community is also in their sights. The Sydney Property Expo at Sydney Town Hall this weekend has about 50 booths acting as one-stop shops for investors.