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Why is Australian real estate prospering?
Author:wubaiyi Date:2018-07-30

Australian real estate has enjoyed a long-term steady appreciation! According to Core Logic, the Australian authoritative real estate website, housing prices in Australia have risen by 231% over the past 20 years, and housing prices in capital cities and non-capital cities have risen by 252% and 167% respectively, of which Melbourne has 335%. The increase in house prices led the whole of Australia. Australia's senior real estate investment expert, an overseas real estate service authority, pointed out that Australia's long-term performance in economic, environmental, population growth, education, etc. has created a high-value, huge potential real estate market.

1. The Australian economy has maintained positive growth for 27 consecutive years, setting a world record

Australia's economy is developed. Even in the global economic crisis, there has not been a recession. It is the only developed country in the world that has maintained positive economic growth for 27 consecutive years. It is also one of the few countries in the world that has always maintained price stability without inflationary pressure. A strong economy has laid a safe and stable real estate investment environment.

2. Australia's population explosion, immigration growth hit an eight-year high

Australian Bureau of Statistics (ABS) data show that as of September 30, 2017, Australia's permanent population exceeded 24.7 million. During this period, Australia's overseas immigration increased by 251,100, accounting for 63% of the total population growth rate. It is the fastest in 8 years. The population has surged, generating huge housing demand and pushing the real estate market!

3, fewer people and more rooms! More than 230,000 housing units need to be built each year

In the past 15 years, the supply of the Australian housing market has been insufficient, which is the potential cause of the rapid growth of housing prices. According to a report released by the Australian Housing Industry Association (HIA), Australia needs to build more than 230,000 homes per year (equivalent to maintaining the highest starting record) to meet the expanding housing demand.

4. Highly urbanized, land resources are increasingly scarce

Australia is a highly urbanized country. The southeastern and southwestern regions of Australia, which account for only 2% of the country's land area, are home to 75% of the country's population, with economic output accounting for 80% of the country's total. With the continuous development, there are fewer and fewer developable residential sites with superior location and convenient transportation. Land resources are extremely scarce and are the golden area of real estate investment.

5, permanent property rights, low total price, fine decoration

Australian property has a permanent property right, inherits from generation to generation, and has no inheritance tax, no property tax, and only 10% down payment. Fine decoration, convenient to purchase. Low vacancy rate, stable rental returns, and easy to increase wealth.

6, the world's first category of "highly transparent" real estate market

Whether it is buying a house or selling a house, Australia has the most comprehensive real estate laws and regulations to protect property owners! The industry information is highly transparent, construction costs and house prices are basically completely transparent, and the profit margin has a clear legal scope. The government strictly regulates the qualifications of personnel engaged in the real estate industry to ensure the safety of the real estate investment process.


 

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