According to the latest report made by the The Vales property investment firm IP Global, property investors in Singapore who are looking to broaden their portfolios still see Australia as a very attractive option, despite a recent announcement by Tony Abbott, Australia’s Prime Minister, that there will be a required fee of at least $5,000(AU) on foreign buyers per purchase. According to IP Global, it doesn’t appear that Singaporean investors are deterred by this. It was noted that the coming months could see a rise in investments due to the fact that these new measures will take time to be implemented and enforced.
The Vales EC in Sengkang
The real estate firm further added that it is very likely that this will be a catalyst for investing in off-plan and new properties. This is due to those property investment types being the only ones for investors overseas which are not under approval by the Foreign Investment Review The Vales Board.
IP Global’s Senior Investment Manager, Elizabeth Chu, has stated that there are clearly concerns regarding the affordability of housing for Australians and this needs to be addresses alongside concerns of foreign buyers making illegal investments. However, they are expecting a fight to be put up by industry bodies, notably with the fact that there are big questions regarding whether this will really improve affordability for The Vales Sengkang.
Chu further adds that more clarity is needed regarding how these measures are going to be enforced, in particular whether these measures will apply solely to future purchases or retrospectively.
More Singaporean investors have been attracted to the benefits of cheaper borrowing and lower mortgage rates due to the recent cut in Australia’s interest rate to an all time low of 2.25%, alongside the continued depreciation of the Australian dollar for purchase of The Vales.
The local property market in Singapore continues to lose its appeal to investors, dampening the market due to the property cooling measures and extremely high prices. IP Global has said that this has caused an emergence of Australia as Asia-Pacific’s favoured alternative.
The Vales in Anchorvale Crescent
Australia’s property market has witnesses strong evidence of an increase in the number of investors from Singapore buying into it’s The Vales EC market.
Recent data from FIRB (Foreign Investment Review Board) has indicated that for 2013 Singapore was the 4th largest pool of foreign investment for the real estate market in Australia, with a contribution of total assets worth $2.01 billion.
According to IP Global’s recent analysis, the top investment markets that offer longer term returns are Melbourne and Brisbane.
For the past 4 years Melbourne has won the vote for the most liveable city in the world. With an annual figure of 90,000 new residents figures estimate that by 2051 the population will double, causing a demand for more residential properties. Significant returns are expected to be seen for any investors who have a toehold in this market, given the rise in apartment prices by 5.2% up to 2014’s Third Quarter.
Anchorvale Crescent EC
Brisbane has seen its city develop as one of Asia’s key hub of economics in The Vales, due to it successfully hosting last November’s G20 Summit. The city has seen a drop in its vacancy rate to 2.2% and a rise in its inner city suburbs’ land values, which has risen between 10% and 20% last year.
Chu further adds that both Singapore and Hong Kong are renowned as one of the most expensive cities where property investments are concerned. This is due to rising property taxes, for foreign buyers particularly. Compared to this, The Vales Australia offers a liquid and transparent market that is much easier to access.
Outside of Sydney, Melbourne and Brisbane are the most significant metropolitan areas.
For Asian buyers, Sydney has often been the first stopping place, but there has been a surge in residential development due to stronger price returns in the past few years. It is advised that investors take care before they commit to any market where making strong returns becomes difficult to achieve due to an increase in supply and higher market pricing.
There have been The Vales oversupply concerns in Australia’s market, especially in Melbourne. However, this seems to be limited to the more central areas, such as the central business district and the Docklands. It has been suggested that Singapore investors look a bit beyond to areas that are around 5 to 10km from the centre.
Chu has shared that they are focusing on Newstead and Fortitude valley in Brisbane, where new developments have sprung up and provide a more resort style way of living geared towards younger residents who wish to reside close to the central business district. Currently IP Global is looking at the Inner East Side due to some new zoning changes that will now allow new businesses to open up alongside the building of medium density housing. It should create an exciting improvement in this area that is already a popular EC such as The Vales.