Asian investors continue to view the Sydney property market as a safe haven, a new report from Knight Frank has revealed.
According to the findings, the greatest areas of demand are in the AU$450,000 to AU$650,000 price range, with investors competing with first-home buyers and other domestic investors in the state capital.
However, the AU$650,000 to AU$850,000 sector is more open, with overseas buyers currently accounting for around 50 per cent of all purchases in this price range.
Meanwhile, the study showed investors have yet to react the reduction in interest rates that took place earlier this year and this could see increasing competition from domestic buyers over the coming months.
A recent report from BIS Shrapnel showed construction in Asian markets is also proving extremely strong in the present financial climate.
"The biggest single factor supporting construction activity is the obvious: Asia's economic development process," commented Adeline Wong, BIS senior project manager. "The development dynamic has elements of a self-reinforcing cycle."
Posted by Steve Douglas
