A growing number of European and Asian investors are purchasing real estate in Australia
as high interest rates continue to put off domestic buyers, it has been claimed.
The Real Estate Buyers Association of Australia has said that a rise in the number of foreign buyers in the country is helping to drive demand. In particular, Sydney is seeing a large influx of investors, the organisation stated.
"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 association.
According to the most recent figures from the Federal Government's Foreign Investment Review Board, foreigners picked up AUD23.4 billion in Australian real estate assets including 3,639 new and existing homes and 988 parcels of land.
CB Richard Ellis explains that one of the main problems faced by domestic buyers in both the residential and commercial markets is the inability to secure lending
. As such, the top offers at the moment are all coming from abroad, the consultant added.
- Thursday 25 November 2010