Australia property remains popular with investors from all over the world. In the recent research by Juwai.com, one of the leading property portals in China, Australian property has gained much attention from the Chinese buyers and topped the charts as the second most popular property investment destination just next to Thailand. As Australian properties attract attention, let’s examine the 5 reasons behind the increasing popularity in Australian properties.
Australia is a country that enjoys steady population growth. From the OECD Countries growth chart, Australia’s population growth rate is the highest next to Israel and Luxembourg. By 2090, Australia is to achieve the same population as Canada, which is 50 million. Over the years, Australia sees high population growth especially in Eastern states such as Melbourne and Sydney. This is due to a high immigration rate of 56% and a natural increase in local population of 44%. With the growth of population, one can expect the demand for dwellings will increase. Therefore, investing in these cities ensures a continuity of both capital and rental growth.
One of the reasons most investors love to invest in this market is because Australian property maintains steady rental yield while achieving positive capital growth. The average rental yield for houses from across the cities ranged from 3% to 5.8%. Over the last 25 years, Australian properties have seen an increase of 25% in median prices. From the portal search in Juwai.com, the demand for Australian property remains high even as Australians are bracing themselves with the economic uncertainty caused by the pandemic.
Apart from immigrants, Australia has the highest ratio of international students per head of population in the world by a large margin, with 812,000 international students enrolled in the nation's universities and vocational institutions in 2019. Accordingly, international students represented an average 26.7% of the student bodies of Australian universities in 2019. With the influx of immigrants and the escalating number of international students coming into Australia, the demand for rental property will continue to surge.
For the past three decades, Australian properties see an average ROI of 7% per annum. Australian properties have enjoyed consistent capital growth over the last 100 years, with property prices doubling roughly every 7 to 10 years. This forms a big pulling factor for the investors all over the world. The slight set back of the properties prices due to the pandemic actually creates a unique opportunity for the avid investors to enter the Australian market with much lesser upfront capital.
It is easy to invest in Australian properties as compared to many other countries. The transparency in the rules and regulations, the hassle-free procedure in property investment makes it easy for anyone to buy a property. Besides the ease in investing, managing a property in Australia is simple too. Most Australian property management companies are able to assist foreign investors in everything with matters regarding property. These property management companies are regulated, and due to the competition with one another, most property management companies provide professional services with reasonable prices.
In Australia, the government does not enforce restrictions on foreigners to a certain type of property and are welcome to own freehold properties and enjoy ownerships of such properties like the locals. There are also no price restrictions for foreign investors too. This is not the case with many other countries. At countries like Vietnam, foreigners have restrictions on owning leasehold properties. Whereas in Thailand, foreigners are not entitled to purchase a landed property. In Malaysia, foreigners can only purchase properties with a selling price of more than RM 1,000,000.00.
Australian properties are easy to invest, providing good returns and rental yields. It is indeed a good place for you to invest in.
This article is written by Sue Wong.
We at IQI International Sales Team are a team of professional sales with vast knowledge in international property market investment. We look forward to hearing from you and to serve you! If are interested to find out more about Property Investment in Australia, do contact us!