Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Sat
Oct 25th
Lost Password? Register
Home arrow News arrow Australasia arrow Foreign buyers snap up real estate in Australia

Foreign buyers snap up real estate in Australia

Tuesday, 23 November 2010
Foreign buyers snap up real estate in Australia
Foreign buyers in Oz

European and Asian investors are buying up residential and commercial property in Australia as high interest rates are putting off national buyers, it is claimed.
 
In Sydney in particular a surge of overseas buyers is driving demand in the CBD, North Shore and Eastern Suburbs, according to the Real Estate Buyers Association of Australia.
 
The most recent figures from the Federal Government’s Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008/09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3,639 new and existing homes, and 988 parcels of land.
 
‘We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK. They know the market is depressed and they are making huge capital gains and are reinvesting into the market,’ said byron Rose, president of the Real Estate Buyers Association of Australia.
 
Real estage agents are marketing abroad where they money is and global real estate firms are also lining up to take advantage of the trend. For example, CB Richard Ellis last month held a real estsate exhibiiton in Hong Kong promoting a range of residential, commercial and retail opportunities in Australia.
 
One of the problems is that Australian buyers, both in the resdiential and commercial markets, are not able to secure lending. CB Richard Ellis said that the top offers at the moment are all coming from abroad.
 
Also Australia is regarded as a safe investment environment. ‘The foreigners are there because they see Australia as safe, secure and actually having growth, which puts us in a much better position than old Europe and the US,’ said a spokesman.
 
At the same time residential estate agents have a glut of unsold properties on their books. The most recent auction clearance rates in Sydney and Melbourne were 51.7% and 54.8% respectively, according to Australian Property Monitors, with many vendors withdrawing their properties before they went under the hammer.
 
Interest rates rises are the problem along with a lack of buyer confidence, according to David Airey, president of the Real Estate Institute of Australia. ‘Listing numbers for agents are backing up. The stockpile is huge and it’s growing. In Perth, for example, there are 17,500 properties on the market and that is around 50% above what would be regarded as normal supply,’ he said.
 
‘We have been saying for some time that the Reserve Bank’s interest rate rise has bitten way too hard and they have affected buyer confidence in a significant way and they have also affected the buyer's ability to borrow the money to buy the property,’ he added.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here






West Tower

West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

Australasia: Top Headline

Australia’s office market recovers with strong growth in 3,000 square meter sectorAustralia’s office market recovers with strong growth in 3,000 square meter sectorStrong demand for 3,000 square meter plus office space is driving healthy activity and growth across Australia’s office sector as the market looks towards 2015, according to new figures.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Real estate franchise Century 21 reports surge of new offices in UK

Property franchise Century 21 UK has announced the opening of a number of new offices around the country.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Australasia property and real estate news feed (RSS)