More foreign nationals have become increasingly interested in purchasing house and land packages in Australia. Many international buyers flock the Aussie market to invest in real estate property. Though the global financial market has not been doing well, a lot of investors are seeing a bright hope in putting their investments in Australia. This massive influx of international investors in Australia is a successful response to its programs directed at globalization and international trading. This would open avenues for businesses and international trades in the humble southern soil.
China’s interest on Australia
It seems that among the countries in Asia, China is the most interested in investing in Australian soil. As the Chinese index continue to be shaky and as its economy is dragged down by different issues, investors are looking to put their money in another country. According to market analysts, the thirst of China for Australia real property sector clearly extends beyond residential. In a report issued by ABC’s The Business show, figures have shown a buying spree of Chinese investors in the country with over $5 billion spent last year alone. This huge buying spree in particular took place across the Melbourne and Sydney areas, Australia’s key cities.
In a research conducted by CBRE, within three years the flow of Chinese capital into the global property market has since tripled and that it’s investment in Australia significantly increased by 25 percent.
This sharp rise in the real estate investment in Australia along with the increasing prices paid for commercial properties in key cities have provoked warnings coming from authorities that a potential collapse event would happen if Chinese pulls out their investment or if they will turn the other cheek. These concerns were acknowledged by the head of financial stability at RBA, Luci Ellis.
He noted that the commercial property market had previously been a key player in the property busts as well as in the risk of financial stability. According to economists, it was the commercial property sector bubble which resulted in the recession during the 1990s. But of course, one should not discount the bigger worry brought about by the residential property sector.