The heat of the Australian real estate market in 2024

The transparency of the Australian real estate market in 2022 ranks among the top in the world, so Australia is considered a “golden investment” destination for international businessmen. After the UK withdrew from the European economic bloc (EU), the country’s economy encountered many uncertainties, especially the real estate market, so many investors withdrew from the real estate market in the UK and switched to investing in Australia.

Some reasons attract foreigners to invest in Australian real estate

Dr David Rees, head of research at JLL in Australia, said: “We believe that the Australian real estate market, with its stable and attractive nature, will always attract global capital.”

Australian real estate is not only less affected by crises or financial events but also has mild growth. Australia is being evaluated as a favorite destination as global investors are looking for opportunities to diversify their investment portfolios, share risks and enhance profits. Australia has the most flexible real estate market globally.”

Australia is a tower of power and a sign of the strong onslaught of foreign buyers on the Australian real estate market is the massive investment from Chinese investors along with investments of up to millions of dollars per property.

Typically, a Chinese female director paid a record amount of 19.36 million AUD to buy a 900m2 apartment in an apartment building on Clarenidon Street, east of Melbourne.

Regulations for foreigners when buying real estate

Highlights of Australian real estate investment 2022 The Australian real estate market is getting “hotter” than ever, but Australians are criticizing the federal government’s laws for relaxing land ownership regulations for foreigners, causing real estate prices to rise.

These loosening policies were introduced at the end of 2008, when the global economy was in a recession but thanks to the enthusiasm of real estate buyers, the Australian economy has prospered again.

To ensure parallel benefits for Australians in particular and the Australian economy in general, on April 23, 2017, the government introduced a new law regulating the purchase of real estate by temporary residents.

Accordingly, those who are not permanent residents or Australian citizens will have to obtain a pre-approval license from the Australian Investment Review Board (Foreign Investment Review Board).

This is one of the measures to tighten the Australian real estate market, however the trend of parents of international students buying houses in Australia is still very strong.

The number of international students owning Australian real estate shows signs of increasing

The number of families of international students buying homes has increased since June 2019 – and at prices often exceeding the value limit of $550,000/unit. Among the houses purchased by parents of international students, there is a house worth 9,000,000 Australian dollars right in front of the eastern seaport, the house bears the owner’s name of 3 students belonging to the same family.

Families often look to buy houses right next to university training facilities. In Marsfield, a family bought a three-storey house with 6 bedrooms worth 1.5 million Australian dollars. According to the Australian Department of Education, there are currently more than 940,000 international students studying in Australia, of which about 42% study in Victoria state.

An informal survey of 30 Australian real estate companies in Melbourne and Sydney for their opinions on this market. Investigations show that this market is quite different in two places: In Melbourne, most real estate companies have 35% of their revenue from foreign customers, while in Sydney the figure is only 5%.

Some real estate for international students in Sydney: https://myaustralianproperty.com/tim-kiem/

Ms. Fung – director of Li & Fung Properties, a real estate company in Hurstville, said: “30-35% of the sales of real estate companies in Australia are sold to foreigners and mainly parents of Australian international students, they have children studying here because that way they save on rising rent.”

Buying Australian real estate is also a path to go with the hope of immigrating to Australia. Those who have submitted applications to become permanent residents and have a bridging visa are among the subjects allowed to invest.

Professor Graeme Hugo, from the National Center for Social Applications of Demographic Information Systems at the University of Adelaide, said: “Currently in Australia there is a new immigration trend, a person is not only a citizen of one country but can be more than that.

There are many Asian millionaires who buy Australian real estate to have more opportunities to settle down. When they are here, when they are in that country, they have roots in both places like Europeans immigrating to Australia in the 1950s and 1960s.

The current real estate market is growing rapidly and will be fueled by strong population growth in the country. Not only are foreigners buying real estate, but people migrating from one state to another, immigrants from abroad, combined with Australia’s population explosion are strong engines causing housing shortages.

Professor Hugo said Australians of foreign origin, after “settling”, have a higher rate of home ownership than those who were born Australian citizens.

The future for the Australian real estate market According to experts, the real estate market in Australia has a lot of potential, real estate prices in this country will INCREASE rapidly in the next 10 years.

According to Mr. Michael Yardney – Australian real estate expert, by 2022 the average house price in Melbourne will reach about 1,700,000 Australian dollars. This trend will also happen in almost all major cities of this country.

According to The Real Estate Institute of Australia, since 1999, the average house price in Melbourne has increased by more than 124% and reached 518,000 Australian dollars/unit.

Information published in the Herald Sun shows that the Melbourne real estate market is “hot” day by day.

With the typical “settle down” mentality, many Vietnamese people in Australia have also become amateur real estate investors in many different ways.