Visitors Targeted for Buying Property in Australia

The Australian property market may be on the positive turn making it of interest to foreign buyers

Tis the season for celebrating, holidaymaking and getting away from it all.  If Australia is on your must-visit list this holiday season, there is a very good chance property sellers will try to market this country’s potential directly to you.  It seems that local buys slow down greatly in Australia over Christmas, but the appeal of buying property in Australia rises for holidaymakers and expats returning home for the season.

As the property markets in much of Australia experience a rebound in pricing growth, this particular country is very appealing for would be expats to the land down under, second-home buyers and investors.  In this article we’ll explore what is happening in the Australian property market and why buying property in Australia might offer good returns for investors.

RP Data estimates that a growth phase has begun in much of the country, minus the Perth and Darwin areas.  In Sydney, for example, housing price growth is at 7.4% this year versus a tiny 0.4% last year.  The number of listings on the Sydney market is also on the rise – up 24% from the figures of last year.  RP Data does acknowledge that overall growth is even stronger in Melbourne, and especially Brisbane, where the mining boom is helping fuel the economy.

But, what exactly is the appeal of buying property in Australia?  What can investors, potential expats and second-home buyers expect to find in this country?

The truth is there are a lot of compelling reasons why the Australian market captures the attention of foreign buyers.  The prices here are not the cheapest in the world, however.  For example, the median home price in booming Brisbane is set to hit AUD 500,000, with growth expected to continue into 2008.  Other areas are more affordable, but buyers here will not find the “cheap” prices they are used to in other investment hotspots.  Despite this, many people who are used to property costs in the UK consider the prices quite attractive.  When the more than 2-for-1 exchange rate of the British pound to the Australian dollar is considered, some might even say Australia offers bargains.

Whilst the prices here are higher than in other investment spots like Bulgaria, Portugal and Belize, there are several factors that make Australia very attractive to investors and especially expats and repeat holidaymakers. These factors include: -

Culture.  Australia is a very comfortable country for Brits to buy in. With a common culture, common language and a British expat community that is more than a million strong, this country has some very strong selling points on this front.

Tourism industry.  Australia’s tourism industry is booming.  The country is expected to see growth of about 3.8% per annum through 2017, and it already holds some 1.7% of the world’s total tourism demand as it stands.  More than 700,000 Brits alone visit this country a year, according to the Foreign & Commonwealth Office.

Growth potential.  With areas like Sydney, Melbourne and Brisbane all experiencing growth and the predictors looking very good for next year, buyers are finding the possibilities here are strong.

Buying property in Australia can be a bit costly, but the appeals of this market for holidaymakers, would be expats and investors remain strong.  As key areas experience growth, this market is looking more interesting for buyers.  If visiting Australia is on your agenda over the holidays, expect to see some properties marketed directly to you.  Now could be the time to look at the potential in Australia’s real estate market more closely.