The continued investment in the property sector from foreign buyers is helping to boost the wider Australian economy.
According to figures published by Colliers International, the upswing in property purchases has boosted both retail and construction.
It said that in the past year, the 9.4 per cent increase in retail sales had been a result of more money coming into the residential sector.
Colliers' international head of retail Michael Bate said that when property prices are rising, as they are on the back of more property investment, consumers feel more confident and will spend more money as a result.
Mr Bate said: "The impact of offshore investors on the residential market has a flow-on effect for the retail sector via increased demand and prices for housing. Increasing residential property values impact on how wealthy consumers feel and in turn their propensity to spend."
Meanwhile, it said that while many say that the 18 per cent of new homes being snapped up by foreign buyers is stunting the ability of young Australians to buy property, local builders and developers are seeing a real boost.
Posted by Steve Douglas
