Welcome Guest [Log In] [Register]


Reply
Asian Investors Still Keen On Aussie Real Estate Market
Topic Started: 12 Aug 2017, 01:49 PM (457 Views)
Black Panther
Default APF Avatar


Asian Investors Still Keen On Aussie Real Estate Market

Despite noise to the contrary, Asian investors – particularly the Chinese – still have a strong appetite for Australian real estate.
Daniel Erez, Manager Director of real estate investment management group, Newground Capital, sheds some light on why foreign demand for Aussie property remains high.

What’s That Noise?
Foreign real estate investment, ownership and housing affordability – references to smashed avocado on toast aside – are hot topics in Australia.

In a bid to tackle some of these fears the most recent federal budget announced stronger rules for foreign investors.

Not surprisingly, what followed were reports that Asian investors are being scared off from buying and buying into Australian real estate.

Fortunately, the facts and market trends show a very different story.

While new rules target foreign owners buying residential property and leaving it vacant, and foreign investor tax evasion, the government’s policy position doesn’t completely discourage foreign investment in local real estate.

In the last year alone, there has been a $55 billion increase in foreign investment, according to the Foreign Investment Review Board, predominantly driven by increased investment in the real estate sector.

And of that, Chinese buyers led the way, investing $31.9 billion in real estate in Australia in the last year.

Other Factors At Play
There are several other factors at play that makes Australian real estate remain very attractive to Asian investors.

On the top of the list are Australia’s stable financial system, a well-regulated land title system, and a buoyant real estate market.

Investors also find our relatively higher capital gains rates and rental yields in major cities, as well as lower deposit requirements, quite appealing.

In China, property law restrictions and its own housing affordability issues also play a role in pushing Chinese investors to overseas markets.

There are an estimated 1.34 million high-net-worth Chinese individuals with a combined net worth equivalent to Australia’s GDP, and many of them seek to invest in overseas real estate.

As a result, Asian capital continues to flow steadily into Australia and from Newground Capital’s experience, interest is coming from a range of investors who have capital ready to deploy including high-net-worth individuals, family offices, corporates and institutions.

Will The Flow Of Money Stop?
While there is significant money available in Asia, particularly from Chinese investors, China’s recent restrictions on individuals moving money overseas has caused speculation and concern in real estate market around the world, including Australia, about its continued flow.

However, the reality of this is these restrictions only effect individuals whose money is coming directly from China. With many investors living right across Asia, particular in the financial hubs of Hong Kong and Singapore – countries that are not subject to the same capital controls as mainland China – the flow is still strong.

While global markets will continue to speculate about potential impacts of Chinese restrictions on their local real estate, Asian investors are still actively looking at international investment opportunities and, most importantly, have the money ready to move.

Newground Capital has found that Asian investors are in fact looking to do deals. Their representatives on the ground in Hong Kong and Singapore are working continuously with institutional and family offices who have capital ready to be deployed in the Australian market.

Admittedly there is a lot of distracting noise happening in this space. So we are seeing these investors take a well-considered and prudent approach to real estate investment in Australia.

Ultimately though, they are taking action, particularly in capital cities, and this is something worthy of noise, as well as good news for Aussie property developers.

http://www.professionalslocalrealestate.com.au/2017/08/asian-investors-still-keen-on-aussie-real-estate-market/
Profile "REPLY WITH QUOTE" Go to top
 
Will
Default APF Avatar

They might be keen but if they can't get the finance they won't be pushing up prices. China has made it much tougher to get money out and developers are finding it increasingly difficult to tap international debt markets. The foreign money is pulling out and it's about time.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Free Forums with no limits on posts or members.
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy