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Overseas buyers are set to drive the residential property market up in 2014, according to Vow Financial chief executive officer Tim Brown.
Mr Brown also told The Adviser that overseas borrowers are driving growth in several specific areas.
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“The new visa requirements mean if you have $5 million in cash you can basically buy yourself an Australian citizenship,” he said.
“In some of the Chinese areas like Chatswood, Eastwood, Hurstville and Burwood in Sydney, we are seeing a lot of Chinese buyers entering the market.”
Mr Brown also said he expects select cities to drive substantial national growth in the next year.
“I think in Sydney, Brisbane, Perth and Darwin there is an undersupply of housing to meet the population growth in those capital cities,” he said.
"We are also seeing an improvement in confidence and lower rates.”
Mr Brown put this confidence down to the change in government: “I think most people are now fairly confident that the decision making process in government will stabilise,” he claimed.
At the recent Vow Financial conference in Hawaii, Mr Brown announced that in the three months ending July 2013 Vow had its highest ever lodgements, approvals and settlement from the Vow network.
Lodgements for the June quarter were up by 52 per cent when compared with the same period last year.
Mr Brown attributes the success to market conditions and Vow’s recent recruitment.
“We’ve brought in some really good people, who see Vow’s proposition of a diversified offering as an attractive offering compared to some of our competitors,” he said.
