Property giant Geocon is wooing Chinese buyers with foreign investment exemptions and an ambitious vision to transform Canberra into “the face of the Southern Hemisphere”.
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In the next 10 years Geocon is planning to radically ramp-up construction in the capital, with more than 3200 units worth a combined $1.7 billion slated for completion between 2019 and 2028.
Since its establishment in 2007, the company has built around 1600 apartments at a value of more than $670 million, in addition to its Abode Hotels interests and other residential construction projects.
![Geocon boss Nick Georgalis, who has stressed the importance of attracting foreign investment to Canberra. Geocon boss Nick Georgalis, who has stressed the importance of attracting foreign investment to Canberra.](/images/transform/v1/crop/frm/silverstone-ct-migration/162e5abb-3393-450e-8f6e-d7fe43a5abac/r0_0_5184_3456_w1200_h678_fmax.jpg)
Geocon projects completed to date
Source: Geocon company profile 2018
Geocon’s pitch to Chinese investors has been written in Mandarin and published on Chinese social media platform WeChat.
“As the capital city of Australia, Canberra is in a less than desirable position. It is not as spectacular as other capital cities in the world,” reads a translation prepared for Fairfax.
“Overshadowed by Melbourne and Sydney, Canberra seems nothing but ordinary. No other outstanding landmarks were established there besides the Parliament House.
“However, there is a group of people who strive to further develop Canberra.
“This is their vision: Canberra – the face of the Southern Hemisphere, the most fascinating capital city in the globe.”
A separate Chinese-language article published by Geocon earlier this month touted a “premium offer” to foreign property investors.
![An artist's impression of the 24-storey Wova building planned for Woden. Photo: Supplied An artist's impression of the 24-storey Wova building planned for Woden. Photo: Supplied](/images/transform/v1/crop/frm/silverstone-ct-migration/ba16689f-cac7-4680-8219-876a7c5345f7/r0_0_4389_3508_w1200_h678_fmax.jpg)
“You only need to pay $1000 in advance to reserve your ideal property,” a translation of the article read.
“The rest of the five per cent down payment can be settled in January 2019.
“Last but not least, Geocon has obtained the certificate to be exempted from FIRB application, which would be particularly convenient for buyers overseas.”
Geocon spokeswoman Jane Seaborn said the $1000 down payment offer was made to all buyers, both local and foreign.
It was routine procedure to apply for foreign investment exemptions and Geocon did so for all its developments, Ms Seaborn said.
“Geocon operates in a broad range of markets, including domestic - local and interstate - and international,” she said.
“It is a very straightforward process to apply for a FIRB exemption certificate (online via the ATO website).
“It is very common for developers to apply and Geocon does for all its projects.”
![Geocon's Wayfarer tower in Belconnen. Photo: Rodrigo Vargas Geocon's Wayfarer tower in Belconnen. Photo: Rodrigo Vargas](/images/transform/v1/crop/frm/silverstone-ct-migration/3f64e5af-aed2-4bcc-b1c0-79bb635f6665/r0_0_1333_2000_w1200_h678_fmax.jpg)
The Foreign Investment Review Board issues exemption certificates for eligible residential real estate developments.
Guidance issued by the board stated that, from May 2017, no more than 50 per cent of apartments in a new development could be sold to foreigners under the exemption.
Geocon projects currently underway
Source: Geocon company profile 2018
“Applications for a certificate will be considered on a case-by-case basis to ensure they are not contrary to the national interest,” read the investment board’s guidance.
“New dwelling exemption certificates will normally exempt prospective foreign persons from individually seeking foreign investment approval to purchase interests in new dwellings up to a cumulative total of $3 million in the specified development.”
Geocon is expanding after amassing a substantial portfolio of real estate and hotel investments since the company was established in 2007.
It currently has five residential real estate developments under way, being:
- The 236-unit Midnight development in Braddon (2019 completion date)
- The 530-unit Metropol development in Reid (2020 completion)
- Belconnen’s massive Republic project, predicted to deliver at least 1257 apartments by 2028
- The 800-unit Wova development in Woden (2025 completion)
- The 430-unit Grand Central Towers development in Woden (2020 completion)
In addition, Geocon has either completed or is close to finishing projects in almost every major Canberra town centre, including:
- The 331-unit Wayfarer development in Belconnen
- The 270-unit Observatory building in Wright
- The 227-unit Vue project in Tuggeranong
- The 426-unit Infinity building in Gungahlin
- The 360-unit Southport building in Greenway
The size of Geocon’s growing footprint is unprecedented in Canberra, with the company saying it accounted for between 30 and 50 per cent of the territory’s apartment stock.
Chief Minister Andrew Barr’s office was asked whether this presented any concerns, but declined to comment.
In an article written for Geocon’s website in March, company founder and managing director Nick Georgalis said it was crucial to entice investors to Canberra.
“Although some believe it, investors are not primarily responsible for bumping up prices and keeping first home buyers out of the market,” he wrote.
“They are, in fact, a valuable source of rental housing, particularly here where the market is so tight.”
Treasury statistics showed that 201 exemption certificates were issued for new residential real estate developments across Australia in 2015-16.
According to the Foreign Investment Review Board’s annual report, the ACT’s residential real estate sector received $170 million of foreign investment in 2015-16.