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Australia attracting a wave of ...

Australia attracting a wave of Asian investment in property

The property market in Australia is welcoming a large wave of investment from Asia, as it has been for some time, with the appetite for buying in the nation far greater among these investors than anywhere else in the world. 

According to a new report that has been published this week by Knight Frank, there is far more money flowing from Asia into Australia for property investments than there is to Europe, thanks to favourable prices and the promises of strong returns further down the line that Australia is able to provide. 

The Knight Frank report states that in the last year, Asian investors spent some $22 billion in the Australian property market, compared to just $12.2 billion that was spent across Europe in the same period. 

The biggest advocates of Australian real estate investors were those from Singapore, who spent about $9.5 billion over the course of the year, followed by Chinese investors with $8.7 billion. These two were followed by Malaysia, Hong Kong, South Korea and Japan, who contributed a collective $3.3 billion. 

Experts at Knight Frank said this is good news overall for the market in Australia, because even as Chinese interest in Australian stock starts to cool off a little, we are still seeing huge appetites from other parts of Asia, which will help to pick up the slack. 

“Regardless of whether Chinese investment eventually cools, there is significant potential for increased capital to flow into Australia from places such as Japan, Taiwan and also the US given the lower Australian dollar,” Knight Frank institutional sales head James Parry said. 

“Quality institutional assets will continue to hold a place for offshore capital investment.”

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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