Unlocking the Potential of the
Australian Property Market
The Australian property market represents stability and opportunity, attracting investors, immigrants, and those seeking secure and profitable investments. Even in the face of the global pandemic, Australia's property prices and rental rates have steadily risen, reflecting effective government housing policies and subsidies. The continuous influx of immigrants, supported by an open immigration policy, has driven population growth and property prices to new heights.
Investors eyeing Australian properties are drawn not only by rental returns and potential appreciation but also by the country's robust legal framework, ensuring safety in property transactions. Furthermore, investing in Australian real estate offers unique advantages, including exemption from inheritance tax and the ability to pass down properties with perpetual freehold ownership, securing assets for generations.
Continuous Population Growth
A property market's worthiness often depends on sustained population growth. In Australia, substantial immigration, particularly in cities like Sydney, Melbourne, and Brisbane, ensures a constant influx of new residents, international students, and working holiday visa holders. This diverse demographic significantly contributes to ongoing housing demand.
Australia's population is projected to increase by 40% from 24.2 million in 2016 to 34 million by 2041, adding 3.4 million households. With an annual immigration quota of around 200,000, housing demand in Australia is expected to surpass supply by 663,000 units by 2031. Even amid the pandemic's impact, the population is projected to reach 31.8 million by 2040.
Notably, Australia has maintained a consistently low rental vacancy rate since 2005, hovering around 2%, with some areas even lower. Coupled with ongoing population growth, the demand for rentals continues to rise. For investors, the Australian property market offers stability, underpinned by room for growth.
Robust and Stable Property Market
Investors value countries with a strong legal system when considering overseas property investments, recognising the importance of investment security. Australia ranks third globally for overall transparency in the property market, behind only the United Kingdom and the United States. This ranking is based on performance evaluation, regulatory and legal frameworks, and transaction processes.
Australia's stable property market is reflected in an average annual return on investment of 7% over the past three decades. This resilience is attributed to secure housing policies and government subsidies. Infrastructure development projects, with over AUD 110 billion allocated in recent federal budgets, are expected to create job opportunities and further bolster the property market.
Freehold Property Ownership
Unlike properties in Hong Kong, which often feature 99-year leaseholds, purchasing property in Australia provides long-term security. Most Australian properties offer both freehold ownership and property utilisation rights, granting perpetual ownership rights that can be passed down through generations.
Australia does not impose inheritance taxes, unlike the UK, the US, and Canada. This means that investors and property owners can pass down their assets to successive generations without the burden of hefty tax obligations.
In contrast to Hong Kong's high property prices, a comparable amount can secure more spacious properties in Australian cities like Melbourne, Brisbane, and Perth.
Alison and her experienced team at Right Key Investment are ready to guide you through your property investment journey in Australia. From expert investment advice to diligent rental management, they are prepared to help you turn the Australian dream into a reality.