Australia real estate investment provides steady return

KUALA LUMPUR (April 30): While Australian real estate does not offer capital gains that are as aggressive as those found in emerging markets, properties Down Under provide long term steady returns and enjoy strong demand, said an Australia property investment consultant.

“Vacancy rates in Australia are generally low. For example, in Sydney, the average property vacancy rate is 2% to 3%, which means there are typically only two to three units available for rent in a residential project,” said Jalin Realty founder, owner and group CEO Ian Chen (pictured) during his session at The Edge Investment Forum on Real Estate 2016 (REIF 2016).

His presentation topic was “Investing in properties Down Under: Have you missed the boat?”.

He shared that generally, Australia’s residential prices enjoy 7% to 8% growth per annum.

“You can only double your property price after investing for 10 years. Australia is not the property investment place for short-term flippers, but for those who want a steady investment return for the long term.”

He also added that there is no oversupply of residential properties in Australia so far.

“[The market] will not be oversupplied. Melbourne and Sydney residential supplies are coming up steadily because of strong demand. However, I believe it will be very well absorbed because the population and demand are growing strongly, and Australia also has very low vacancy rates,” Chen remarked.

He concluded that Australia is among the most stable and safe property markets, despite the local government implementing some tightening measures on the real estate investment market, such as a 1.5% absentee tax based on the property value for investors who do not stay in their property for at least six months.

“Have you missed the boat? You have not; in fact, there are plenty of boats now. Developers are more innovative and there are more projects to be launched in the next three to four years. My advice is to choose the right one,” Chen said.

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Grab the May 6 issue of TheEdgeProperty.com for a more detailed report on REIF 2016. The full report comes out in the May 9 issue of City & Country, the property pullout of The Edge Malaysia.