Foreign investors still keen on Australian property
Australia is still proving an attractive option for foreign property investors.
While much has been made about a slowing property market and falling levels of investment, a new survey has found the Australian property market still holds appeal for Chinese investors.
The Foreign Investment Review Board’s annual report has revealed that spending on Australian residential and commercial real estate nearly doubled in the 12 months to 30 June last year, The Sydney Morning Herald has reported. Spending rose from $12.4bn to $24.3bn over the 12 months, having risen from $5.9bn in 2013.
According to the SMH, a separate survey conducted by KPMG and the University of Sydney found Chinese buyers want to allocate more money to Australia.
"Overall we are seeing a strong story of Chinese investment into Australia's broader economy which is in line with premium products, services and lifestyle-oriented themes," KPMG head of Asia and international markets Doug Ferguson said.
Total foreign investment in Australia rose 17% to $194.6bn in the 2015 financial year, up from $167.4bn the year prior. The United States remains the second largest foreign investor in Australia, accounting for $25.1bn during the 12 month period.
- The real estate sector had a significant increase in approvals with 37,347 approvals in 2014-15, compared with 23,428 approvals in 2013-14 and is more than triple the levels of 2012-13.
- Approvals in 2014-15 were given for $194.6 billion of proposed investment, a 16.3% increase on 2013-14.
- Outside of real estate, the major industries for proposed investment in 2014-15 were services ($38.8 billion), mineral exploration and development ($26.7 billion), and manufacturing ($19.5 billion).
- Proposed investment in residential real estate increased from $34.7 billion in 2013-14 to $60.8 billion in 2014-15. There was also $36.2 billion of proposed investment in the commercial real estate sector.
Source: Foreign Investment Review Board