Investments in real estate in Australia are increasing
In recent years, foreign investors are increasingly paying attention to real estate in Australia. And experts say that the demand from non-residents for local properties has not yet reached its peak, and growth will be observed in the future.
By June this year, investment by foreigners in the Australian real estate market had increased by 15.5%. Such a figure was a record high over the past few years. At the same time in April the National Bank stated that buyers from other countries show little interest in local housing.
Foreign investors from different countries are represented in Australia. Traditionally, the leaders in incoming investments are U.S. citizens, among the volume of investments amounting to $13 billion. In second place are businessmen from Singapore, who brought $9.5 billion into the country’s budget, and the third place is taken by the Chinese with an indicator of $7.1 billion.
Investors from Europe have also become more interested in Australian real estate. Businessmen from Germany invested $3.7 billion and from France $2.4 billion. Investors from Canada spent $3.3 billion to buy properties.
Over 12 months, foreign investment totaled more than $17 billion, almost $15 billion more than in the previous period. However, this amount is almost half as much as was recorded in 2016-17, when the level of foreign capital investment in real estate in Australia was $30 billion. Despite this, experts note that demand for property in the country is steadily growing, and will continue to increase in the future. Even during the pandemic in the local market deals were concluded, although it was complicated by restrictions on air travel.
Analysts say Australia is attractive to foreign investors. This is especially evident in the secondary housing market. This year it has invested $4.5 billion, and last year the figure was $1.7 billion. As for the interest in new housing, here the dynamics has not changed – about $4.9 billion.
The greatest demand from foreigners was recorded in Victoria, in second place – New South Wales, and after him – Queensland.
In addition to foreign buyers in Australia, the number of local buyers is growing. Citizens of the country believe that now is the best time to buy a home. Low interest rates and favorable credit terms help maintain demand. In addition, the Australian economy is recovering rapidly, which increases people’s confidence in stability.