According to Colliers International research in July 2012, foreign investment in Australia’s property markets continued to increase on the back of the country’s stable economy and high-yielding assets, with Asian buyers leading the charge.
Its research for Australia’s capital markets has found there was $4.06 billion worth of foreign investment in Australian property for the first half of 2012, up from $3.8 billion compared to the first six months in 2011.
“Foreign buyers made up 40 per cent of all commercial property transactions in Australia in the first half of 2012, with 58 assets valued at $2.8 billion purchased by overseas parties in the second half of the year alone,” said Colliers International.
Overseas investors are astute property buyers. They want to buy in areas that are strengthening, areas that are underpinned by employment, transport, shopping and education, with genuine faith in the product they’re buying into.
Often they will be purchasing a property as a residence for family members who are studying in Australia.
For example, Crown Group’s latest development, V by Crown, reports that it is attracting strong interest from overseas buyers (as well as local).
Crown Group reports that while the vast majority of Crown Group’s sales and marketing attention is focused on attracting local buyers, a total of 15 per cent of apartments sold in the development to date have been bought by overseas buyers.
Anthony Falas, the Group’s Project Sales Manager said, “Overseas investors are astute and savvy and – just like their local counterparts – take a keen interest in the finer details such as the apartment finishes and the facilities."
Investors from China, Hong Kong, Korea, Indonesia, Malaysia, India and Japan have purchased apartments in V by Crown, along with 85 per cent of local buyers.
“Overseas investors often demand much of the same detailed information about the property and the development as a whole, sometimes more,” Falas said. “They are keen to know all the ins and outs because they can’t get there themselves.”
According to the Foreign Investment Review Board’s website, the Australian Government welcomes foreign investment.
“It has helped build Australia’s economy and will continue to enhance the wellbeing of Australians by supporting economic growth and prosperity.
“Companies operating in Australia and Australian companies operating overseas are expected to act in accordance with the principles set out in the OECD Guidelines.
“The Foreign Investment Review Board examines proposals by foreign persons to invest in Australia and makes recommendations to the Treasurer on those subject to the Foreign Acquisitions and Takeovers Act 1975 and Australia’s foreign investment policy.”
Due for completion around the middle of 2015, V by Crown is a $300 million, 27-storey residential apartment building, which will feature approximately 500 luxury apartments and resort-style facilities including a pool, gym, conference facilities, music room, theatrette and a library.
V by Crown has been designed by the multi-award winning and internationally renowned Allen Jack + Cottier architects (AJ+C) in league with Japanese/Australian architect Koichi Takada. It is located in the heart of Parramatta’s city centre, close to Church Street’s eateries and Westfield shopping centre, rail and ferry connections, as well as Parramatta Heritage Parklands in Sydney.
This article was first published in the March 2013 edition of the REINSW Real Estate Journal.