An increase in population and a stable economy underpins Brisbane’s property markets
According to IP Global, Middle East investors have begun to turn their attention to Australia to invest in their property market.
An increase in population and a stable growth in economy underpins the real estate market in cities as such as Melbourne and Brisbane, as was said by the real estate firm in its newest quarterly report of the world’s real estate outlook.
Australia’s Statistics Bureau reveals that the country’s economy expanded in the first 3 months of 2015 with an annual rate of 2.3%, while its population increased by 1.5% until the September of the previous year.
Although properties in Sydney are popular and have gone up in price, there exist valuable properties in Melbourne and Brisbane as well.
As there is a shortage of housing units in the city, prices are expected to rise 5-8% higher than its current median, which is A$422,000; this median amount is an increase of 3.6% since the December of the previous year.
In addition, the report also mentions that the key focus of these investors would most probably be in the southern area of the country, in the suburban area around 10 kilometers from the central business district in Melbourne.
Melbourne’s apartment prices rose to 5.2% by March of 2015, however, the city has a low rate of vacancy at 2.1%, which helps keep the yields at an average of 4.1%.
The report also added that a surcharge of 3% is to be added starting July for foreign nationals living in Victoria.
The head of EMEA in IP Global, Paul Preston, has stated that it is obvious as to why Middle East investors would be interested in Australian real estate, and that is because the process of investing is clear and straightforward.
He also adds that a big infrastructure and an increasing population support this idea of investing abroad.