New global property report says Brits are buying more in Australia

by Ray Clancy on November 19, 2015

in Property in Australia

Australia is very popular with British people but now it seems the love affair is more than just the lifestyle and weather as more UK investors are buying property in the country.

Record low interest rates, the comparatively weak Australian dollar and escalating prices in the UK are behind the rise of British buyers down under, according to new research from IP Global.

111815-gold-coast-city-housesMelbourne and Brisbane are experiencing the highest demand from both UK and other overseas buyers. While there is still interest in Sydney, rocketing prices have led to tighter investor lending criteria and fewer overseas buyers as a result.

The third quarter Global Real Estate Outlook report also identifies and analyses the best performing cities for property investment.

Overall, British nationals are now one of the largest overseas buying groups in the Australian market, although Indian and Chinese investors are buying higher prices properties. With volatile equity markets at home, Chinese buyers are increasingly putting their money into stable markets like Australia, the UK and the United State.

One of the most popular cities for overseas investors is Melbourne, consistently voted one of the world’s most liveable cities, where buyers are set to see returns of up to 8% next year.

Brisbane is also rapidly boosting its international reputation, according to the report which points out that house prices have risen 5% per annum over the last three years, led by regeneration in areas such as Cannon Hill and Newstead.

‘British investors are appreciating the value of the Australian property market more now than ever before. It offers a transparent and liquid market that is continuing to generate strong yields and capital growth,’ said Jonathan Gordon, director at IP Global.

‘Of course Australia has traditionally been the destination for British expats looking to relocate and find a home in the sun. Now we are seeing British investors going in specifically from an investor perspective to capitalise on its growing property market,’ he explained.

‘Brisbane and Melbourne are two of the most popular metropolitan areas. While Sydney still has some appeal, particularly for Asian buyers, many investors are wary about committing to a market where high prices and increased supply are likely to limit the rate of return,’ he added.

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