Australia is a superior international destination for South Africans to invest in property. Not only has the Australian property market experienced consistent capital growth over the last 100 years, it has seen property prices doubling every 7 to 10 years. BIS Oxford Economics has also forecast a significant 55% rise in residential construction over the next 4 years to reach 236,650 by 2023-24. We take a look into some of the positive factors underpinning the Australian property market.
Investor confidence
The Australian market has proved to be a resilient market during downward trends. While other countries have experienced extreme property price declines of up to 70%, Australia has remained steady. For local and foreign investors, Australian property market is seen as the best choice compared to other property markets and even the stock markets. Other contributors fuelling investor confidence is that there are currently no changes expected to the capital gains tax, and Australians population continues to grow, which is a clear indication that this destination is a key property investment goldmine.
Steady economy
In the last 10 years, the Australian dollar has appreciated by 62% against the Rand. The Reserve Bank of Australia has set out to achieve an inflation rate of 2 – 3 % over time. As it stands, it has already reportedly dropped the interest rate in 2019 and recently chosen to keep the rate at 1%; which is the lowest it has ever been. This has subsequently boosted housing affordability.
Key locations performing well
Despite challenges in the property market, key locations are strengthening the Australian property market. Brisbane, along with Melbourne, were voted by industry experts in the latest Finder RBA Cash Rate Survey to be the best capital cities to invest $500k in property. The Brisbane economy is predicted to increase from $135 Billion to $217 Billion over the next 12 years.
Invest Australia has been specially curated to introduce strategically positioned off-plan investment opportunities to an exclusive South African market who are interested in securing offshore property investments in Australia; the fastest growing first-world property market.
