Foreign Investors Pricing Out Australian Real Estate

A generation of Australians are being priced out of the housing market, leaving many facing a “lifetime of renting”, according to a report by Credit Suisse.

Chinese buyers are currently pouring in more than A$5bn ($4.5bn; £2.7bn) into the residential market every year, pushing up prices, the findings show.

The median house price in Sydney has risen by 45% in the past five years.

Australia has some of the most expensive property markets globally.

The investment report by Credit Suisse analysts combines information from several official sources including the the Australian Foreign Investment Review Board, the Australian Department of Immigration and the Australian Bureau of Statistics.

However, the report’s authors caution that the magnitude of flows into the Australian market from China is difficult to estimate precisely.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza