Australian real estate is becoming even more popular among foreign investors, and it’s not just Chinese homebuyers.
A growing number of Middle East investors are picking Sydney as their favourite housing market, and they see pockets of value still existing in the suburbs of Brisbane and Melbourne, reports Gulf News.
“In terms of fundamentals, a rising population and big infrastructure-spending programmes support the outlook for real estate returns in areas beyond the more well-known, traditional investment locations,” said Paul Preston, Director, Head of Europe, Middle East and Africa at IP Global, was quoted as saying.
“Investing in Australia is a relatively straightforward and clear process.”
Despite the optimism for Australia’s housing markets, the new 3% surcharge on stamp duty for foreign nationals in Victoria is still going to be implemented early next month.
Apartment prices in Melbourne have also jumped 5.2% in the year to March. An IP Global report said the city’s low vacancy rate of 2.1% is keeping yields at a “healthy” average of 4.1%.
“Some of the fringe suburbs within 10 kilometres of Melbourne’s central business district (CBD) should be a key focus area for investors,” the report stated.
“With a shortage of housing stock endemic across the city, further price rises are anticipated, with forecasts putting growth at 5% to 8% across 2015.”