In recent years, Australia has registered an impressive boom in what regards its property market, with increased attention from foreign investors, in particular those originating from the Asian continent. But what can explain the appeal Australia’s property market has on foreign investors? Following, we would like to present you with a list we have compiled of the top 4 things that attract foreign investors to the Australian property market.
In a recently published report, Knight Frank indicated that more than half of the demand for Australian real estate comes from foreign sources, in particular from China, Singapore, Malaysia, or Indonesia. In addition, the report also expressed how this tendency is likely to continue in the years to come. But what has prompted foreign investors to take a keen interest in Australia’s property market? Read below as we explore the top reasons that make the real estate industry in the Land Down Under so appealing. Let’s take a look at the countdown.
No. 4: More relaxed legislation
While Australia has registered a massive increase in foreign investments only over the course of the past two years, the wheels were set into mention ever since April 2009. It was then that Australian officials approved a more relaxed real estate legislation, which was bound to increase foreign activity on the real estate market.
No. 3: Real bargains
The truth of the matter is that most property investors are looking for a bargain and in this department, Australia is more than generous, at least in what regards Chinese investors. Price declines have prompted countless Chinese property investors to expand their activities on Australian territory. However, this situation also caused some concerns, especially given the process Australia went through 30 years ago when, after an initial influx of Japanese investors, investments dropped significantly. Nonetheless, according to Street News, the situation is unlikely to repeat itself as it seems that Chinese investors are not interested just in scooping up a bargain, but they are also looking for properties that have the potential for a high revenue in the long run.
No. 2: Higher benefits
Even though Australia’s economy is one of the strongest in the world, which also translates into the fact that property prices tend to be on the higher end, some foreign investors have a lot to gain from prospecting the local property market. For example, for a Chinese investor, returns are higher in Australia than in China. This is due to the fact that anyone who buys a certain property in the Land Down Under will receive interest indefinitely. In China, on the other hand, properties cannot be bought outright, as they first require a 99-year lease permit. This is just one example, but more and more property investors are finding out that Australia has more benefits to offer them than their native countries.
No. 1: The stability of the Australian market
Real estate and stability are not exactly two terms that typically go together. However, the Australian property market does seem to offer more security than other markets around the world, which explains why some property investors are keener to invest in Australia’s real estate industry, rather than buying property in their native countries.
