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Overseas Property Investors Seeking Aussie Luxury

Melbourne luxury riverfront property

Overseas property investors are still buying Aussie luxury real estate despite taxes introduced against foreign buyers

Prime Aussie residential real estate, particularly in Sydney and Melbourne, is still attracting foreign property investors, according to the Knight Frank Prime Global Cities Index Q2 2017.

High property prices has stopped many of the Aussie population from being able to buy real estate, but the top 5 per cent of the prime luxury residential property market is still attracting foreign buyers.

Knight Frank report that despite appreciation of the Australian dollar at the end of July, conditions are still favourable and many expats are securing their ideal home for a future return to Australia.

Director of residential research at Knight Frank Australia, Michelle Ciesielski, commented: ‘Foreign interest in prime Australian residential property has remained relatively strong over the past year, with many currencies holding an ongoing purchasing power against the Australian dollar.

She continued: ‘In saying this, more due diligence is being carried out by purchasers – particularly due to tax surcharges being introduced, stronger penalties being enforced by the Australian government for those who breach the rules, and the processing fee now payable for every application to the Foreign Investment Review Board.

Melbourne led the way among Australian state capitals for property inflation in July, according to the CoreLogic July 2017 Home Value Index.

The Victoria state capital saw property prices rise by 3.1 per cent in July, compared to the combined capitals average of 1.5 per cent.

However, most state capitals continue to enjoy property price rises as the economy in Australia remains upbeat.

Senior economist at CommSec, Savanth Sebastian, said: ‘The rise in home prices will garner the most interest. Especially in light of the solid back-to-back gains in property prices. In fact, in the past two months, national capital city home prices have lifted by 3.3 per cent. Granted the out-sized 3.1 per cent lift in Melbourne home prices in July was a significant driver of the overall result, but the gains were broad-based.

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