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Offshore buyers are 'critical' to Australian property market

Offshore buyers are not damaging the market, as previously believed.
Offshore property buyers are not damaging the market in the way that has previously been reported, according to the latest report from the Property Council of Australia.

In the past few months, there have been worries that the number of people coming from other nations to Australia to buy property - particularly China - has been sending prices up and up.

However, the council's executive director of international and capital markets Andrew Mihno said that they are actually helping the market to grow as opposed to being detrimental. 

"Foreign investment does not push houses out of reach for Australians," he told a governmental hearing last week.

"Foreign investment is critical for national growth ... it is helping Australia to develop more homes into the market."

The main reason for the foreign contingent not being as detrimental to Australian prospects as had previously been thought is the fact that they are not competing with first timers.

Chinese buyers have been blamed for pricing young Australians out of the market, but reports show that they are typically buying more expensive properties than first-time buyers, meaning there is no serious conflict between the two groups.

Posted by Craig Francis

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