RESIDENTIAL PROPERTY INVESTMENT IN AUSTRALIA

Abstract

Real estate globalisation has become increasingly popular in recent years, especially with Asian investors. Property markets in many Asian economies are peaking as the markets in Western countries like United Kingdom, New Zealand and Australia bottomed. The price of property in the latter countries is enormously attractive to foreign investors, especially those from Asia, who escaped the worldwide recession and are facing high prices in their home markets. Singapore investors have so fervently been taking advantage of this phenomenon that they are ranked as one of the biggest property investors in the three countries mentioned above. The recent trend has also witnessed Singaporeans scramble for residential properties abroad, especially in Australia. Exhibitions on Australian properties are held every week with an average of 15 to 20 units being sold on the spot. This dissertation thus examines the rationale behind the recent interest in Australia's residential property market. The study also brings a potential investor through the whole process of making an investment decision. Firstly, reasons that prompt Singaporeans to venture into Australia are compiled. Secondly, the performance of the residential property markets in the major capital cities of Australia are analysed, and their future likely trends evaluated so as to allow investors to decide which states or capital cities to invest in. Thirdly, the legal, tax and financing matters that concern a foreign investor in Australia are examined. Lastly, precautions that need to be taken so as to safeguard an investor's interests are discussed.