However, Chinese investment in the nation’s luxury apartments has been hit as no signs emerge that President Xi Jinping’s anti-corruption crackdown, which has focused on senior officials shifting capital out of the country, will soon slow.

“It has had an effect on the Chinese-based buyers,” says developer David Johnston, managing director of Chinese-backed New Hope VIMG which is developing apartments in Sydney.

The NSW government ordered a surprise 4 per cent surcharge for foreign buyers to help raise $1 billion over the next four years, which is also not helping.

However, Johnston says Chinese-based developers were pressing ahead with existing projects throughout Sydney.

New Hope VIMG has sold 54 per cent of its $600m stage two Landmark building, also in Sydney’s St Leonards.

Apartment prices range from $661,000 to $10.9m.

Guide to luxury property sales

Construction on the second stage of the Pacific Highway address starts early next year but Johnston says there was a marked reduction in interest from overseas buyers after the recent raft of regulatory changes.

Meanwhile, land has been cleared for the Embassy Towers site in St Leonards, on Sydney’s lower North Shore, as the latest rush of up-market properties hits the market.

The project has been valued at up to $280m and will contain 267 apartments starting at $695,000 but the price tags will rise as high as $6m. The development has been under consideration for the past six years, but was slowed because of state and local government restrictions.

The full sales and marketing program is yet to start but interest in the project has been keen, particularly from owner occupiers. A display suite will open on ­August 6, and a VIP campaign commences from August 27.

The developer of Embassy Towers, Loftex general manager Rob Turchini, says there had been private tours for the top-priced apartments, attended predominantly by empty-nesters.

“We’re finding there’s strength in that luxury market — it’s a lot of owner occupiers. We have seen many of the buyers coming through showing interest. There are locals whose kids have done well and left home. They can sell their house and keep the spare change.”

Turchini says a growing number of buyers were starting to leave populated areas like Sydney’s Darling Harbour and Melbourne’s dense Dockland district.

“There has been some owner occupiers wanting to leave where they are now, they look for something different. “They can sell for $5m and have money left over.

“We have seen a drop from foreign buyers, the banks have tightened their lending standards, stamp duty changes have had an impact (but) we are still getting some foreign buyers,” he says.