As featured in Australian Property Investor.
In less than a week, Australia’s international borders will reopen and Australia’s economy – and property markets – will enter a new phase.
Property consultant Zaki Ameer, whose consultancy DDP Property has offices in Australia and Dubai, said Australia’s relatively sound management of the COVID crisis had endeared it further to overseas investors.
“I expect to start seeing a decline in demand for property by local buyers over the next two years mitigated by an increase in overseas investors,” Mr Ameer said.
“Many internationals are cashed up and do not require mortgages and want a safe haven to invest their money into, including assets such as Australian property, using cash,” he adds.
This occurred across 2015 and 2016 when many international investors bought into Australian property. It did though raise red flags among government security agencies that Australia was being used to launder money and keep it safe in Australia.
“As much as overseas buyers are interested in Australian property, they will have to jump a lot of government hurdles to demonstrate the money they are investing is from legitimate and legal sources,” Mr Ameer said.
How quickly international investors returns still depends, of course, on COVID, he said.
Many Asian countries are still struggling to conquer the pandemic’s challenges and China’s restrictions to control the virus there are unlikely to be removed in the near future.
Australia is also seen to be the third most expensive housing market in the world, after Hong Kong and New Zealand, according to researchers Demographia.
“Regardless, I see demand for Australian property by overseas investors growing later this year and beyond, especially in the capital cities of Melbourne and Brisbane as well as wider areas of Victoria and Queensland,” Mr Ameer said.