Australian real estate market is benefiting from the collapse of the property
market in Dubai as Chinese and Russians buyers move their allegiance down
Property investors from both nations are now the biggest foreign buyers
of residential property and especially favor Queenslands Gold Coast,
it is claimed.
Last year, Chinese buyers finalized deals for $22.76 million of houses
and apartments, while buyers from the Russian Federation signed for $22.7m
of Gold Coast homes.
Russian buyers had been virtually non-existent in the Queensland property
market 10 years ago, according to Paul Barratt, project marketing director
with global real estate adviser DTZ.
Russias increasing wealth from oil and mining has combined with
Australian developers specifically targeting Russian buyers through road
shows in Moscow, has contributed to the surge in demand.
Yan Orlievsky, director of Moss Capital, an advisory and investment group,
said the collapse of the Dubai property bubble meant Russian investors
are looking for safer markets.
Australia has always been a romantic notion to Russians. Its
a little bit of prestige, to have an Australian investment. Russia has
a growing middle class. It is cash and investment driven, not debt driven,
Competing are the Chinese who have always been big buyers in Australia.
According to Australias biggest apartment developer, Harry Triguboff,
the proportion of Chinese buyers in some locations could be as high as
60%. I would estimate that around $200 million of my sales come
from buyers from China each year, said Triguboff, whose company,
Meriton, has built thousands of apartments in Sydney, Brisbane and the
DTZs Barratt said there had also been an increase in the number
of South African buyers across Queensland in the past two years. Australian
developers had targeted South African investors keen to invest their spiraling
rand in robust economies.
The demand from overseas buyers has also been boosted by changes introduced
in 2008 by the Foreign Investment Review Board allowing 100% of a new
residential project to be sold to offshore buyers. Foreigners could previously
purchase only up to 50% of a new development.
There is also increasing demand form property investors from Singapore
This article has been republished from Property Wire. You can also
view this article at Property Wire, an international real estate news