Foreign spending in Queensland improves

Foreign spending in Queensland improves

Posted on Wednesday, December 21 2011 at 4:05 PM

Queensland is set to offer strong property investment opportunities over 2012, according to a research report recently released by Colliers International.

“Stable government, rule of law and transparent accounting practices, as well as an enviable quality of life for residents have continued to underwrite a positive investment track record for the Gold Coast, Brisbane and Queensland generally,” said Colliers International researcher Lynda Campbell.

Easing interest rates are likely to be a turbo charger for foreign investment in Queensland in 2012, added Campbell. “This means that the upside potential for the Australian dollar appreciation against other currencies may be constrained so that Australian property assets should not be impacted by exchange rate considerations as much as they have been during the strong appreciation against the US dollar during 2010 and 2011.”

China still dominates foreign spending in Queensland, with the Gold Coast the prime recipient, Campbell said.

Despite foreign spending declining in Queensland since it peaked in the 2007/08 financial year with a figure of $620.8 million across 1495 transactions, the 2010/11 financial year saw spending ease back a little on the previous year, recording $334.2 million over 733 individual transactions.

Of this total spend in Queensland, the Gold Coast was the number one choice for foreign buyers, with $165.3 million spent in the region alone across 310 transactions, followed by Brisbane with a foreign spend of $86.2 million across 180 transactions.

In the same period, Chinese buyers represented one-third of all foreign buyers in Queensland for the second consecutive year.

“Property investment in Queensland should also be encouraged by the substantial investment ($50 billion) in the state’s mining and resources sector in 2012. This is expected to have significant economic flow-on benefits throughout the state, generate strong employment growth and create demand for multiple land uses including residential housing,” said Campbell.

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