Foreign investors have been buying
Australian properties more actively in the first six months
of 2009. This is quite interesting and surprising given the
fact that the impact of global financial crisis is
drastically affecting investment behaviors of businessmen
all over the world. Indeed, just like in the past years,
real estate sector in the country is performing relatively
better compared to the property sectors in other parts of
the developed world, including the progressive European and
North American countries. Observers
and analysts identify several reasons for the continuous
uptake in Australia properties. First, the depreciating
Australian dollar is boosting the value of the US dollar and
other global currencies, making the purchasing power of
offshore investors in the country higher.
investment growth rate of about 8% to 10% annually
(depending on which state) translates to a 25% upside of
local real estate.
This is quite higher compared to the
overall performance of current global property market.
Many investors are also seizing opportunities posed by lower
tax rates on loans and easier procedures in securing them,
especially for the purpose of constructing or buying
residential properties. Analysts commend the Australian
national government for offering a number of incentives
aimed at stemming declining confidence in residential
markets amid the global economic downturn. In particular,
the government has been actively lowering interest rates in
an effort to reduce property mortgage costs. The state of
Victoria is most popular among foreign
property investors because of the local
government’s offered perks. The state is
imposing lower tax rates and stamps if
property buyers would buy land immediately
and then settle the full amount as soon as
the building or development is completed.
Such incentives further lure and attract more foreign buyers
of Australia properties. To date, there are four major types
of investors who buy Australian real estate.
Those buyers are those who aim for capital gain, for
migration, for properties to be passed on to
children in the future, and for lifestyle buying.
British investors comprise the biggest bulk of such
property buyers collectively, while Asian investors
are trying to catch up.
It is expected that in the coming months, the
Australia property sector would strengthen further.
Federal and local governments in the
nation-continent are continuously working
hand-in-hand in making the local property sector
survive the times.
Indeed, the country’s real estate
industry is still young and is up to enjoy more good
Private and public
sectors are cooperating with each other to make Australia
property market more attractive than ever. It is not
surprising that the sector is helping the overall national
economy survive the challenges of the current times. Growth
is looming ahead for sure.