Property Demand In Australia Is On The Rise Due To Foreign Immigrants

27 Nov 2013

During the March 2013 quarter, net foreign migration to Australia raised by 73,398 people, according to the recent ABS population figures. Compared to 60,970 people during the March 2011 quarter represents an increase of 20% over the past 2 years.

Currently, overseas migrants account for more than 60% of Australia’s total population growth during the March 2013 quarter.

Traditionally, population growth is the property market’s key driver as it underpins real estate demand.

Foreign immigrants, when they first arrive, not only do they require rental properties in Australia, but at a later point they start investing in properties and buying their own homes.

According to DEPPRO, more than one in ten of their clients are foreign immigrants who entered Australia over the last decade and then after establishing themselves financially, they decide to purchase investment properties to establish long term wealth.

Over a period of time, these foreign immigrants tend to buy multiple investment properties with many selecting to buy properties in many regions throughout Australia to boost their returns.

A breakdown of the places where people are moving to indicates that a major proportion move to Victoria, New South Wales, Queensland and Western Australia.

DEPPRO also found that several foreign immigrants who buy investment properties do not completely understand the tax benefits that they can gain in Australia.

After arriving in Australia, several new immigrants to Australia decide to purchase investment properties as a way to establish wealth without realizing that there are plenty of claimable tax benefits related to property investment in Australia.