Australia owes China big time, at least from the perspective of the real estate market. The influx of investments has helped the national economy, and reports say that most of these investments come from China. As a matter of fact, experts have found that China is currently the number one investor in the Australian property market.
But while realtors are rejoicing on this, some can’t help but wonder why this is happening. In the opinion of industry experts, investors have two reasons.
The first reason is simple: diversification. All financial advisers agree that the key to beating inflation and succeeding in making your own money work for you is to create a diverse, income-generating portfolio. The stock market surely is the first option, but investors have to venture outside of this domain. Mutual funds and bonds also act as effective investment vehicles, but all these are non-tangible assets. Compare this with real estate, which is relatively low-risk and easy to manage, and you’ll understand why investors want properties in their portfolios.
The second reason has something to do with the Australian environment. We all know that the Land Down Under is one of the most attractive tourist destinations in the world, but even more so for the Chinese. One survey has indicated that Australia is at the top of the Chinese tourist wish list, and that is definitely driving investors to buy properties in the area, too.
Moreover, Australia presents itself as a great emigration destination – and this is what makes properties in the country easy to sell, according to the experts at Laing+Simmons. The Land Down Under has a strong common law process, which makes it ideal for Chinese residents who want to move to English-speaking countries. An impressive education system adds up to the equation, too. Lastly, the environment is pleasant, given the good weather and clean air.
The good news is that houses in Australia will remain attractive in the eyes of investors. As far as the data show, the Chinese-driven boom will continue for a few more years. Hopefully, this continues to strengthen the real estate market and, in effect, have a significant positive impact on the national economy.