There are huge number of factors that influence property in Adelaide – and one of these could come from beyond Australian shores. Foreign investors have been flooding into the national market in droves, and a new report shows that this could actually help drive building work nationwide. This is something that should please homebuyers all over, including in the South Australian capital.
According to the Foreign Investment Review Board 2013-2014 Annual Report, offshore buyers have been snapping up real estate nationwide. There was a massive increase in the number of approvals for commercial and residential properties last year – in fact, the figures show a whopping $34.7billion in approvals for residential homes alone over the year.
This can have some great implications for real estate in Adelaide. The Property Council of Australia said this highlights just how important offshore interest is driving economic growth, creating jobs – and getting building work moving. There were 10,946 homes under construction in 2014 in South Australia, which was an improvement on the previous two years according to the Housing Industry Association. If offshore capital keeps flowing in, it could get even better for the Adelaide market.
There has also been a bit of debate about whether foreign investors are actually stopping local investors from securing a home – but Property Council chief executive Ken Morrison quickly put this to bed. He noted that these investors aren't duelling with local buyers – in fact, they're helping everyday Australians get a foot on the property ladder by improving affordability.
"Foreign investment provides the crucial early stage capital to get big new housing developments over the line and into construction, delivering the twin benefits of more jobs and more new homes," Mr Morrison said in a 30 April statement.
With home building looking up and overseas buyers giving the construction sector a handy boost, the future's looking bright for the property market – and Adelaide could get a slice of the action.
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