Mapping out a shift in foreign investment targets
With recent changes to the foreign investment framework introduced by the federal government, ...
With recent changes to the foreign investment framework introduced by the federal government, overseas buyers will be more closely regulated by the Australian Taxation Office (ATO). This should make the market a more hospitable place for those who want to buy a property, whether they are from Australia or not. It ensures the housing sector continues working in favour of locals, which should bring positives for all involved.
Foreign investment is an important part of the Australian real estate sector, and if these measures make the market safer, residential property won't be the only thing to get a boost. New research is indicating that commercial real estate in Australia is a new hot area for buyers.
Commercial property in sharp focus
The University of Sydney and KPMG joined forces for a survey on foreign investment last year, and it shone a light on where overseas buyers want to spend their money.
"Respondents overwhelmingly indicated their investments in Australia are driven by commercial factors," the report noted. On top of this, the reasons included for purchasing Australian real estate included profitability, gaining access to resources and expanding China's global reach.
The Australian Financial Review reported on May 25 that in a forthcoming release, commercial real estate, leisure development and infrastructure account for 79 per cent of Chinese investment in our country. With the ATO in place to monitor this investment, it should ensure some fantastic growth for the future - which will likely have flow-on benefits for locals.
More homes for you
A May 4 press release from the Property Council of Australia highlights the positive impacts that foreign investment can have for anyone looking to buy a property in Australia. Ken Morrison, chief executive of the industry body noted the direct impact that can occur when an overseas buyer picks up a home here.
"What we have seen over recent years is that every newly constructed home that a foreign investor purchases enables up to four other homes to be built," he noted.
If this is the result of a residential purchase, it stands to reason that commercial real estate for sale to overseas buyers could have fantastic impacts for our national economy. The concentration on commercial real estate could also see many new retail and industrial centres come to the fore, sparking growth areas for residential homes.
For more information on where property is emerging right across Australia, make sure to contact a local agent with intimate knowledge of your desired market.