Does the rise in offshore property investment support or threaten our local Australian construction and development industry? How will the predicted future oversupply in apartments impact the market? The key to balance may lie in the type of controls put in place to protect locals whilst continuing to leave the door open to opportunities from foreign investment.
The impact of offshore developers on Australia’s property market continues to divide key industry players. While some local developers see offshore interest as an opportunity for collaboration, others are concerned by the increased competition this brings to the market. Australia’s Foreign Investment Review Board registered a dramatic increase in foreign investment particularly in residential real estate in 2013-14. While approved investment in commercial real estate increased from$34.8 billion in 2012-13 to $39.9 billion in 2013-14, proposed investment in residential real estate more than doubled, up from $17.2 billion to $34.7 billion in 2013-14.