Property Investment Australia

Property Investment in Australia is becoming increasingly important for investors around the world seeking capital growth in a stable political and economic environment. The worldwide demand for mineral resources has led economic growth in Australia. Continued demand for resources from developing countries is going to provide further impetus for growth in resources and drive property investment here.

Over $12 Billion is being invested in mineral exploration in South Australia alone over the next 5 years. With this comes infrastructure and infrastructure drives prices. We can already see major overseas funds like Germanys SachsenFonds GmbH investing $186.33M in major commercial properties in Adelaide.

Last year the SATAS delegation of Japanese businessmen came to Australia to identify opportunities in the Australian property investment market and to seek information on regulation and legislation for property investment advice. Interest has been growing since.

As Superfunds continue to grow in value around the world, new investment opportunities are continually being sought. Expect to see Listed and Unlisted Property Trusts invest more in growth areas particularly those driven by the resources boom and tourism. It all means new property investment opportunities commercial and residential.

It also means competition for good development sites, between traditional developers and the LPTs for development will grow. Expect to see reduced profit margins as LPTs and Funds seek out lower margins than traditionally available to developers.

It’s usual to see this sort of activity lead to property price growth. We have seen this sort of activity in 2002-2003 in Western Australia for instance.

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