HSBC has released a short note today on Asia’s increasing appetite for Australian residential property, with Australia ranked as a top destination for investment by affluent Asians:
Australia is one of the most sought-after property investment markets globally among affluent Asians. And amongst the future investment in Australia, affluent Asians are likely to favour smaller property markets such as Queensland and ACT over the larger markets of NSW and Victoria, according to HSBC research.
HSBC’s international property investment research was conducted by RFi involving more than 7,000 affluent individuals across seven Asian countries to understand their international property investment appetite…
According to the research, Australia is currently the number one destination for offshore property investment among wealthy Indonesians, while Malaysians and Singaporeans ranked Australia second.
For the rest of Asia, 9% of affluent Chinese, 10% of those from Hong Kong and 18% from India are currently invested in Australian property…
HSBC’s research also indicates that investors across the region are broadening their scope from traditional property markets like Sydney and Melbourne to Queensland and ACT. Of the affluent Asians looking to buy in Australia in the next year, 25% intend to buy in Queensland, 23% in ACT, compared to 20% in Victoria, 18% in New South Wales followed by 16% in Western Australia…
“The increased flow of foreign investment into Australia can be a catalyst for increased construction and property development which can support the economy rebalance away from the mining sector”…
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
