Investors considering buying Australian property may wish to do so sooner rather than later, as another expert has said that high land prices and restricted supply are likely to push prices higher.
Business Spectator editor-in-chief Alan Kohler says that foreign investment has appeared at the same time as some state governments are restricting supply by introducing conservative planning laws.
New South Wales and Victoria have both introduced rules that have made it much harder to build new properties, even though demand is spiking thanks to an influx of investment from overseas - largely consisting of Chinese money.
Writing for The Australian, Mr Kohler says that demand is rising for apartments to be treated as financial investments.
Because the current law only permits foreign buyers to purchase new properties and not existing stock, the pressure on new developments is rising at the fastest rate.
“The inevitable result is higher prices and less affordable housing, putting more pressure on wages and making industry less competitive,” he wrote.
Posted by Craig Francis