It's not news that Australia has seen increased investment from China, but a detailed research report from Knight Frank shows exactly where this investment has gone: Chinese interest is diversifying into new destinations such as Brisbane, the Gold Coast, Adelaide, Perth, and regional suburbs of NSW and Victoria.

Chinese investors are also branching out from office and residential developments into hotels and leisure, student accommodation, industrial assets, and mixed-use developments. According to Knight Frank’s latest report, Chinese Outward Real Estate Investment Globally and Into Australia, the total value of Chinese outward real estate investment globally skyrocketed from US$0.6 billion in 2009 to US$16.9 billion in 2014 – 10 per cent higher than 2013 and a substantial 205 per cent increase from 2012. According to the report, just over $4 billion was invested into Australia by Chinese investors in 2014, across both commercial and development sites. This exceeded the total Chinese inbound real estate investment which occurred over the prior five years combined (2009-2013).

“It is expected that 2015 will be another record year for Chinese outward investment, both internationally and into Australia, with the expectation of more than US$20 billion worth of investments transacting globally. So far the majority of the Chinese outward investment has been focused in gateway cities of Australia, the US, and the UK," said Dominic Ong, Knight Frank’s Senior Director of Asian Markets, Capital Markets.

According to Ong, what first started as sovereign funds making exploratory investments has proliferated into buying sprees by Chinese developers, banks, ultra high net worth individuals, and institutional investors, such as insurance companies. So far, only four of the top 10 Chinese insurance companies have made offshore investments. Sunshine Insurance Group is the only one to invest in Australia, purchasing the Sheraton on the Park Hotel in Sydney for a record AUD$463 million, but Ong said he expects more Chinese insurance companies to be active in Australia this year.

“Going forward we expect a couple of owner-occupiers or at least part owner-occupier deals to transact over 2015 and 2016, as we have just started having some enquiries on sales listings in Sydney and Melbourne from Chinese banks,” said Ong.