Investing in Australia Property: How to Buy a Quality Investment Property in Canberra with HK$700,000?
- Alison Tao
- Aug 13
- 4 min read
Updated: Aug 27
In today's investment landscape, what can you do with HK$700,000?If you're hesitant about the high volatility of the stock market, many opt for fixed deposits. However, with the recent sharp decline in Hong Kong’s interbank offered rate (HIBOR), fixed deposit rates have fallen below 1%, turning "yield-seekers" into "yield-chasers."
HK$700,000 is neither enough for a down payment on a rental property in Hong Kong nor sufficient to secure high-return local investments. As a result, many are turning their attention to overseas real estate markets—and Australia, with its strong legal system, political stability, and transparent property transactions, has long been a top choice for international investors.
Yet, many Hong Kong investors assume that Australian property prices are already out of reach. Even in cities like Perth, Adelaide, and Brisbane, the median house price now typically ranges between AU$800,000 and AU$1 million, leading many to believe they can no longer enter the market.
But the truth is, Australia still offers "low-barrier" investment opportunities—such as its capital, Canberra.With a HK$700,000 down payment, you can purchase a quality apartment in Canberra, enjoying around 5% rental yield and potential capital growth. Even better, Canberra does not impose additional stamp duty on foreign buyers, meaning overseas investors pay the same fees as locals—total entry costs (down payment + stamp duty) start at just HK$700,000+. In contrast, Sydney and Melbourne charge 8-9% extra stamp duty for foreigners, while Brisbane imposes 8%, making Canberra a far more affordable option.
1. Why You Should Avoid "Cheap" Overseas Properties
Many budget-conscious investors look to the UK, Japan, Thailand, Malaysia, Vietnam, or Cambodia, believing these markets offer lower entry costs. However, from a long-term investment and risk management perspective, these markets come with significant drawbacks:
UK: Post-Brexit economic instability, high inheritance taxes, slow capital growth, and expensive management fees erode real returns.
Japan: Aging population leads to declining demand, high earthquake and tsunami risks, rapid property depreciation, and a weakening yen further diminishing rental income value.
Southeast Asia (Malaysia, Thailand, Vietnam, Cambodia): While advertised yields may seem attractive, political and legal instability, currency fluctuations, and fraud risks mean many investors end up losing money.
As an Australian-qualified lawyer and real estate agent, my first rule for property investment is a strong legal system. Without proper legal protection, even a 100% capital gain may never truly end up in your pocket.
2. Why Australia Remains the Best Overseas Investment Choice
Australia ranks 7th globally in investment security (84.08/100), thanks to its clear property rights, transparent transactions, and political and economic stability, attracting investors worldwide.
While cities like Perth have made headlines for rapid price growth, Australia isn’t just about these hotspots. For budget-conscious investors, Canberra is a market worth considering—apartments start at just AU$500,000+, and some lenders offer 80% mortgages to foreign buyers, significantly lowering the entry barrier.
With proper planning, HK$700,000 can be your starting point for Australian property investment, offering both stable rental income and capital appreciation potential.
3. Is Canberra Worth Investing In?
When evaluating Canberra as an investment destination, I prioritize three key factors: legal system, economic fundamentals, and demographic trends.
1）Legal SecurityWith HK$700,000 for a down payment, investors seeking common law jurisdictions typically consider the UK and Australia. Both offer strong legal protections, but Australia holds a distinct advantage - no inheritance tax. This makes intergenerational wealth transfer significantly more efficient compared to the UK's hefty 40% inheritance tax.
2）Economic FundamentalsAs the national capital, Canberra boasts unparalleled economic stability:
Government sector employs 26.6% of workforce (ABS 2021 Census)
Unemployment rate of just 3.4% (vs national 4.3%)
Highest wages in Australia (AU$2,178 weekly average)
3）Demographic DriversThe ACT Treasury projects population growth from 470,000 to 784,000 by 2060 (1.4% annual increase). Notably:
43% hold bachelor's degrees (vs 26.3% nationally)
Chronic housing undersupply (3,000 annual deficit)
Oxford Economics forecasts 20% price growth over 3 years
4. Property Cycle Analysis
HTW's Property Clock positions Canberra in the "Start of Recovery" phase (June 2025), indicating:
Market bottom confirmed
Early-stage price growth emerging
Potential to replicate Perth/Adelaide's growth trajectory
CoreLogic data shows 1.3% quarterly growth, with REIACT CEO confirming market recovery. Bank of Queensland's chief economist predicts Canberra will lead national price growth (12% over 24 months), supported by:
Interest rate cuts stimulating demand
Relative affordability vs other capitals
Strengthening rental market (1.5% vacancy rate)
5. Prime Investment Location: Phillip
The Phillip precinct offers compelling investment fundamentals:
Infrastructure Investment
AU$265m Light Rail Stage 2 (2028 completion)
AU$500m Canberra Hospital expansion
AU$325m CIT campus (6,500 students)
Market Characteristics
15 minutes from CBD
67% apartment dwellers (ideal for investors)
Entry point from HK$700,000 down payment
Westfield shopping center and major employers
6.Investment Outlook
Canberra presents a unique value proposition:
Leasehold system (identical to Hong Kong's)
No foreign buyer surcharges (vs 8% in Sydney/Melbourne)
Australia's lowest land tax (0.75%)
Up to 80% LVR for overseas buyers
With AAA credit ratings and major infrastructure projects, Canberra's property market is poised for sustained growth. The Phillip precinct, in particular, offers exceptional growth potential due to its transport links and amenity profile.
For personalized investment advice, visit investwithalison.com to schedule a consultation.
Alison’s Story
Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.
When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.
So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.
Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.
Alison Australian real estate information platform
The original intention of Miss Alison to establish investwithalison.com is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.
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