South African property companies are showing an increasing interest in the Australian housing market due to the continuing demand for homes in the country.
According to Business Day, firms are beginning to invest in dwellings due to the reliable returns offered on their original payments.
Additionally, currency diversification, long leases, high occupancy and the quality of tenants have been named as contributing factors for the ongoing interest.
Thabo Ramushu, asset manager of Meago, stated Australia's retail market was the weakest of the sectors, while offices in Perth, Melbourne and Brisbane are fairing "reasonably" well.
"Australia is experiencing a two-tier economy, with the resources and corporate economy still showing solid growth, while the consumer or domestic economy is sluggish," he added.
This comes after Bloomberg reported a number of Australian wine businesses were being rescued as a result of investment by Chinese property players.
Falling exports and increasing competition from a number of South American countries have resulted in the decline of the country's wine industry.
Posted by Ravin Chatlani
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