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Brokers are looking for new avenues to international property investors as a new report suggests they will play a major role in shaping the 2014 property market.
According to Neil Smoli, managing director of property research and investment firm Aviate Group, the Australian market is set for a shake-up.
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“The influence of foreign investors purchasing residential property in Australia is having an increasingly pronounced impact,” he said in the company’s property market outlook for 2014.
“The relatively simple path for overseas investors to purchase property in Australia can be expected to come under further scrutiny, particularly given the falling number of first home buyers in the market at the moment.”
Speaking with The Adviser, Eric Cui of Alliance Mortgages in Sydney (who was among the top 20 in The Adviser's 2013 Young Brokers ranking) said he agreed that foreign investment is on the rise, particularly from China.
“Based on last year’s figures, Chinese investment in Australia is definitely picking up and I personally estimate that there will be lots more looking to buy in Australia in 2014,” Mr Cui said.
“My real estate agent referral partners have also told me that enquiry has picked up from that channel.”
Trying to tap into this market may be difficult, especially for those who can’t overcome the language barrier. However, Mr Cui claims he has found a way to make the most of the growing sector.
“Some local real estate agents market in mainland China for developments and projects, so they have their finger on the pulse.
“We have exclusive partnerships with these real estate agents in our local area. So when they sell off-the-plan properties and the investor signs the contract, we’ll be brought on board to finance the mortgage.”
The report from Aviate Group also pointed to larger-scale foreign investment helping to keep interest rates low.
“Of particular interest will be the rumoured entry to Australia of certain major Asian banks, which could be expected to move aggressively into our market and potentially keep the rates offered by the major Australian banks in check,” Mr Smoli said.
