Following the 2001-to-2003 growth phase in the Australian property market, price growth slowed down over much of the country. But most large Australian real-estate markets are now emerging from the 'downside' of their cycles - and Sydney is again experiencing solid growth, with higher rents and improving yields luring more investors, according to real estate giant Colliers International.
Darien Bradshaw, Colliers International regional director, International Properties, said buyers from Hong Kong included expatriates (mainly Australians) and Asian investors, buying in off-plan apartment blocks or 'master-plan communities'.
Hong Kong investors were especially attracted to Sydney and the Gold Coast, said Mr Bradshaw. Those buying in Sydney typically wanted to be 'within five minutes' of the CBD, with harbour views, or in big Chinese communities such as Chatswood on the city's north shore. Cairns was also 'quite hot' and getting to the top of its cycle.
Brisbane is experiencing double-digit growth, and the average price for a new unit in Brisbane or on the Gold Coast is about A$600,000 (HK$3.9 million). Yields for new units are about 5 per cent.
Colliers said the most recent Foreign Investment Review Board figures (2004-5) showed that Queensland attracted the highest proportion of foreign dollars. While Perth had seen 'phenomenal growth' over the past two years, the time to invest in the city 'appears to have passed'. Price growth had recently slowed considerably as prices became 'unaffordable', and healthy rental yields 'difficult to locate'.
Eddie Kutner, chairman and founding director of Central Equity Group, the largest inner-city apartment developer in Melbourne, said: 'I think Hong Kong people recognise that Australia is a stable country with a strong economy, not too much red tape and a very straightforward business culture.'
