The current real estate market reports of Australia show a positive ascend in the foreign real estate investment pattern. The fact that makes it even more interesting is that the majority of the investors belong from Asia. Further reviews state that Australia acts as a prime option of real estate investment for Asian property investors. It is, therefore, not hard to predict that the current interest for Australian properties is definitely going to persist in the following years.
The Australian market has consistently attracted wealthy Asian investors for the past few years. Among all the Asian countries, China and Indonesia still continue to be a significant contributor in the real estate market of Australia. Apart from this, Australia has been preferred as a choice of investment by investors belonging from India as well. The two main cities of the country Melbourne and Sydney is the major hotspot of foreign property investment. The Credit Suisse Report shows a very interesting picture. According to this report the Chinese investment in Australian real estate market has reached an astonishing A$5.9 Billion in the last year. This is far more than the American investment amount that sums up to A$4.4 Billion. Needless to say that, the China is the largest foreign real estate investor of the Australian property market.
Reasons of Increased Foreign Investment
- A significant portion of the foreign investment has been made for the sake of pure investment. Apart from this, factors like a cheap property price and uninterrupted annual growth has facilitated the decisions of property purchase to a great extent. According to a survey of Australia known as the OECD Economic Survey, the country’s versatile yet flourishing economy has helped it to retain its position as one of the top five countries having flexible economies since 2008.
- There are low risks associated with the Australian economy and this is a major reason for which the investors from China have mostly invested in properties. Apart from this, well developed education and employment infrastructure has forced investors from these countries to invest in the property market of Australia. The majority of the foreign students coming to study in Australia prefer to stay back in this country because of a flourishing employment infrastructure.
- Besides immigration, factors like stringent property laws in countries like China has also forced the Chinese investments to increase to a great extent.
This positive impact on the real estate market of Australia will definitely not leave any visible effects on the local investors. But there are certain interesting trends that cannot be avoided at all. Let us have a quick look at the widespread effects of the increased foreign investment in the real estate market of Australia.
- There is a consistent increase in the median house prices in the suburbs of Australia. In fact, there are certain instances where there were submerged risks of real estate bubbles.
- Increase in foreign demands has increased the chances of development in the interiors. The places that were not preferred by domestic customers have now come under the demand.
Apart from this there are various other indirect effects of the rising foreign investment. Nobody can avoid the fact that foreign investments in the real estate market are a valid aspect that enhances economic stability and living standards. Australia has been visibly benefiting on the above grounds.
Authors Bio - James is a professional article column writer and blogger who loves to write on various topics related to global real estate market trends. He suggests the readers to take the help of an expert real estate agent while searching for properties put up for sale in Carlisle.
Summary- The ongoing trend of increased foreign investment in real estate market of Australia is sure to yield long term benefits. There are numerous factors that have positively influenced the investment preferences.