A flood of cash into Melbourne’s property market has some observers nervous, while others see opportunity.

Billions of dollars are flowing into Melbourne as new Chinese wealth looks for a safe investment environment. Plans to change the city’s skyline are well underway.

Developer Jeff Xu points out that Docklands, Melbourne’s ‘fast-tracked’ suburb, has seen five apartment blocks built in five years. He contrasts that with China where “20 towers would be built in three years,” he said. “When you go to China, every project is maybe 10 or 20 towers.”

Asian investors see opportunity in Victoria’s lacklustre housing market, and the retirement village sector is likely to benefit as money begins to flow through the property market.

Last week’s report from developer Stockland strengthens this argument.

“Demand for our [retirement village] product is strong,” said AGM MD Matthew Quinn, “with high reservations in the first quarter after a very challenging final quarter.

“This business is expected to deliver modest profit growth this year and, like residential, it will skew to the second half”.

In September Stockland had 268 reservations to buy a village home, made up of 168 reservations in established villages and 100 reservations in new villages.

As investors from China, Malaysia and Singapore turn their attention to Melbourne, there are high hopes that this activity will not only strengthen housing and retirement village markets in Victoria but right across the country as well.