Australian Property Market is booming. One of the reasons is the current foreign investment climate. Australia has one of the most liberal rules for foreign property ownership globally, and there are no restrictions on foreigners buying residential or commercial properties. The only rule is that they can not buy existing apartments off-the-plan (i.e., before construction is completed). While it may seem like a minor issue, it actually means that foreigners are more likely to invest in new property developments rather than existing ones. This has had some great benefits for Australia’s economy as a whole. Foreign investment causes developers to make significant upgrades, which can cause new jobs and greater infrastructure growth throughout the community.
The current Australian housing boom is largely attributed to this change in foreign investment policy. The overall value of a foreign investment in Australian real estate has tripled in the past decade, making it a key to keeping the economy stable during global financial turmoil. However, it has also increased home prices faster than income levels have risen, making housing unaffordable for many Australians. A recent survey by the Real Estate Institute found that more than half of first home buyers could not save a deposit due to the high cost of housing.
The top property and real estate investment in Australia remains in Sydney, the country’s largest city. The demand for real estate has increased significantly faster than supply levels have risen. With a stable population of just under 4 million people, this has led to very high prices.
More people today are interested in purchasing property in Australia. As a result, investors and residents alike are looking at the current real estate boom and trying to determine when it will end and what that might mean for Australian property values. The consensus is that the market has already peaked in many areas, particularly Sydney. However, some experts believe prices could rise an additional 10 percent over the next year or two before a slow return to more normal growth rates.
It is a fact that many foreigners are buying properties in Australia, paying as much as 15% above market value. This has been attributed to the Australian economy being one of the most stable economies globally, and Australians still have relaxed rules on foreign property ownership compared to other countries. Certainly, with prices continuing to rise and foreign investment levels increasing at a rapid pace, the market will likely continue to be very hot for several years to come.
Leave a Reply