Foreign developers snap up property in Australia

Foreign developers snap up property in Australia

Posted on Tuesday, December 20 2011 at 5:04 PM

Foreign developers are making the most of bargain buying conditions in Australia and snapping up property.

Property research company CBRE reports the residential development sector has been heavily targeted by offshore groups and foreign companies currently have more than 13,000 apartments either planned or in the marketing phase. Based on average apartment completions in Australia in 2011, this represents a market share as high as 32 per cent.

CBRE executive director of global research and consulting, Kevin Stanley, says foreign developers haven’t been this active since the beginning of the boom in the late 1980s and early 1990s.

“Asian developers, predominantly from Singapore, are leading the pack, accounting for 92 per cent of all apartments presently being proposed or developed by foreign companies in Australia,” he says.

Singaporean developers are responsible for almost 5000 apartments being planned or under way. Sydney and Melbourne account for 79 per cent of where the 13,000 apartments are being planned. Foreign developers are also facilitating apartments on the Gold Coast (10 per cent), Brisbane (six per cent), Perth (three per cent) and Adelaide (two per cent).

“We’re also aware of site purchases in regional areas of Australia close to mining centres, such as Mackay, where population and employment growth is very high, although to date there are no apartment numbers available for these projects.”

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