OVERSEAS INVESTORS “LAND BANKING” YELLOW CANARY

Developers have advised us that most apartments purchased in Manningham are by locals. It has been stated for a long time that overseas buyers have been courted by focused residential marketing. The Australian Government only allow them to buy new properties, or buy to increase the quantity of housing – see attached guide below.   What is the best for Australia?

  • Investment keeps the building industry going – a key industry in Victoria.
  • External and Overseas interest & investment; increases demand, increases sales, drives up prices and damages affordability as they do not live in our economy.

buying_a_home FIRB Foreign Investors ( 2 Pages Overview)

What do you think?

4 Responses to “OVERSEAS INVESTORS “LAND BANKING” YELLOW CANARY”

  1. Spearmint. says:

    Like it or not, we are now part of a more globalised property market, locals have lost their competitive edge and are being priced out by other purchasers, including investors and overseas buyers. With a limited supply of established properties, unbridled overseas investment, thanks to loop holes in FIRB regulations, our market will continue to drive up house prices.

    Spearmint

  2. Pixie says:

    If the market for housing was not dysfunctional there would be little or no interest from foreign buyers. Holding an illiquid asset in a foreign jurisdiction with a lot of aggravation (tenants) to earn your rental yield is not attractive to most investors. The fact that there is no such interest from foreign buyers is the proverbial yellow canary. Fix the distortions on the supply and the demand side and the foreign interest will evaporate.
    Pixie

  3. Dalray says:

    There has been a sharp increase in the number of high rise apartment projects on Doncaster Hill being marketed off the plan in Asia, not only to attract overseas investors who are allowed to purchase in this way, but also the fact that Australia is seen as the Switzerland of Asia with a reliable currency, a stable market place in which to place some of their savings long term. By comparison the off plan pre-sales of smaller apartment projects, being sold locally outside the Doncaster Hill perimeter, have been extremely slow due to concerns of high owner’s corporation fees, privacy issues and poor capital gains due to fear of a glut compared to the strong demand for town house units which are performing as well as established properties. Barely a week goes by without a complaint from someone who lost out at the auction of a property to a “foreigner” or from a real estate agent who reported a sharp rise in interest from overseas clients.
    Dalray

  4. Friend of Doncaster says:

    While the surge in apartment pre-selling overseas might be encouraging to the authority who foisted the high rise scheme upon us, the long lead up times between council approval, achieving the sales quota requirement and completion (typically three years for high rise apartments) means that the banks and overseas investors could be exposed to the risk of a protracted downturn as apartments could still be being constructed en masse long after the market has turned South.
    Friend of Doncaster

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