FIRB Report Reveals 75% Growth In Foreign Real Estate Investment
Foreign real estate approvals have increased by 75 percent in 2015 for Australian real estate to a record high of $61 billion. This may lead to new developments, according to reports.
The foreign real estate data were shown in the Foreign Investment Review Board revealing a total of 36,841 foreign applicants for residential property sales. The numbers indicate a 60% growth from last year, while the amount of properties covered by foreign applicants rose to 75 percent to $60.75 billion, and the purchase approvals since 2012 to 2013 have more than tripled.
This foreign real estate value, which was nearly half of the approved foreign investment, was aimed at generating new developments, a significant development for the housing supply and the real estate market, according to a feature from ABC News.
While the economists at the UBS agree that this constitute the 81% of the entire value of last financial year's residential building approvals, they also said that further research implied only one in three-conversion rate between the actual investment and FIRB developer investment approvals.
Moreover, it also implies that a quarter of the entire new residential developments last financial year in Australia were funded by the foreign investors. With a total of $28.7 billion worth of investment throughout 152 developer applications, this data greatly suggests that the majority were dealt in the high-rise inner-city markets, specifically in Brisbane, Melbourne and Sydney.
The foreign investors are also responsible for the 20,551 approvals for those to purchase newly built properties that are worth a total of $14.4 billion, nearly double the number from last year, according to a feature from the Daily Telegraph.
With foreign investments, a total of 9,236 established homes were bought last financial year, which are worth $10.1 billion, though only those who live in Australia are allowed to purchase an existing property.
Foreign real estate investors also get approvals to further invest an amount of $36.2 billion in a total of 506 commercial properties.