Is Foreign Investment Bad For First Home Buyers?
Property investments in the country have been enticing foreign buyers for the past years. According to John McGrath of McGrath Estate Agents, this has been one of the biggest surges in recent years, with Chinese investors dominating as much as 90% of the property market in certain suburbs.
These investors have been credited for driving property values up, accounting for 40% of buyers in a recent auction from CBRE Real Estate, showing clear foreign interest in the nation’s growing property market.
But is it fair to say that these investors are driving First Home Buyers?
The Australian market comprises 5 trillion properties, and it is a major economic factor. Supply is not an issue. Although foreign investors play a huge role in purchasing property with different standards, it is imperative that home developers align their business to accommodate not only foreign buyers, but also the needs of Australians. Property values should at least be within reach of first home buyers to even out the playing field.
Read more about this on the Radio Australia website.