Foreign investment here, foreign demand there….foreign in this week’s property news, just about everywhere…..
- China has become the largest source of foreign demand for Australian property with FIRB granting approval for almost $6b – yes, that’s b for billion – in purchases in 2012-13. Chinese buying of real estate rose 44% in the year, ousting the US & Singapore as top origin of foreign investment in the sector.
- Foreigners in house splurge – foreign buyers spent twice as much buying established residential housing in Australia in 2012-2013 (buying over 5,000 homes compared to 647 in 2009-2010) – but spent 12.6% less on mining investment. Asian buyers have been targeting established homes in Melbourne & Sydney close to the CBD and Sydney’s north shore. A further 4,499 new apartments & homes were sold to foreigners off-the-plan last financial year.
- Chinese win on towers – the Victorian Government has approved this week an application for five high-rise residential towers in Melbourne that will deliver more than 2,000 apartments. Sino-Ocean, a Chinese government-owned enterprise, is the backer of ICD Property’s Eq Tower that will stretch 63 storeys & consist of 632 dwellings.
- Apartment roulette – a development application for a $75m tower in Brisbane was rejected by the local council even though 131 apartments had been fully sold. Other developers reportedly are using strategies to attract buyers to a product that doesn’t yet exist.[sam id=41 codes=’true’]
- High five – top countries for foreign direct investment in Australia 2012-13 ($bn): US $20.6; Switzerland $18.4; China $15.5; Canada $14.4; UK $6.8.
- Housing surge tipped – HIA forecasts are for good news in the housing industry over the next 12 months, driven by much stronger activity in New South Wales, Queensland & Western Australia.
- Sydney’s roaring auction market – wont’ continue indefinitely – according to APM senior economist Andrew Wilson. McGrath chief, John McGrath expects the Sydney market to settle, with no repeat of last year’s 15% price increase.
- Cashed up foreign buyers are snapping up Australian homes. FIRB gave the green light to 11,668 purchases of Australian residential properties by foreigners last financial year – up 19% on the previous year. Including commercial real estate, a total of 12,025 purchases were approved – 4,573 in Victoria; 3,580 in NSW, 1,734 in Qld, 1,267 in WA & 567 in SA.
Michael Matusik will be presenting at the National Property and Economic Update seminar in Brisbane on 29th March. Click here now for full details and to reserve your seat.