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Australia ripe for international real estate investors

Fed up with low rates of interest from the banks and the uncertainty of shares international real estate could be the vehicle for your investment. The Global slowdown has taken its toll on the many regions around the world & overseas property investors now feel uncomfortable to invest in many regions. So where is the frustrated real estate investor to go.The answer it appears is Australia.

Australia comes out on top of the list of best countries in the Australasia Region for property investment, with China and Japan right behind it. The Investment Intentions Asia Survey, conducted by the Asian Real Estate Association, the European Association of Investors in Non-Listed Real Estate, and the Pension Real Estate Association asked potential investors what markets in the region they like the best.

Nearly half of the investors and managers of funds that invest in other funds believe that Australia and Japan are the most attractive markets in Asia. Approximately 41% of the respondents put Australian and Japanese office as the top investment choice. The survey included the largest global investment firms such as LaSalle Investment Management and Blackrock.

Breaking down the survey shows that 64% of fund-of-fund managers, those that invest in other funds, listed Australia as the preferred location. 58% of investors had Australia on top and 40% of fund managers had it first. Additionally, most respondents expect the Australasia real estate market to recover in 2010, with many looking for a beginning in late 2009.

According to the Australian, auction figures from Australian Property Monitors showed an improvement in clearance rates.The paper noted that in Sydney this statistic stood at 69 per cent - up from less than 50 per cent at the same time in 2008.

Yvonne Chan, head of research at Australian Property Monitors, remarked: “Although medium prices have shown a small growth month-on-month since the beginning of this year, the activity level is fairly high.”

Other cities to benefit included Melbourne - where the rate of 72 per cent represented a 20 percentage point improvement - and Adelaide, where clearance rates rose from 39 per cent a year ago to 66 per cent.