Real estate bubble in Australia: the key is in foreign investments
Even one of the most avant-garde nations with the highest level of wellbeing in the world, is experiencing a period of crisis in the real estate sector, which affects those interested in buying a house in Australia.
In fact, Australia is trying to control the housing price bubble, especially in large cities, through the help of foreign real estate investments, which are oriented towards
more in brand new homes.
The real estate prices are so high that they give one of the biggest Australian cities, Sydney, the second most expensive city in the world, second only to Hong Kong.
Despite the volume of transactions is not so high, house prices have increased
suddenly.
Reason why, the Australian government, has started to reduce the strong demand for purchase, to remedy this stalemate that is anesthetizing the country, restricting the circle for the eligible buyers, only to an extremely rich target.
It is hoped that the prices of the brick, can be lowered at least up to 30% of the value of the building property, to return to a situation in the real estate market and free from these non-indifferent barriers.
The rules to protect all potential buyers, came into force as early as 2016 when the situation was less dramatic.
But the strong increase of the population (above all because of the young people who, every year, see in Australia the '' promised land '' for self-determination) has provoked a parallel increase in demand.
It should be noted that the cost of living in the Australian continent is one of the highest in the world, but anyone can, even with more jobs, (regularly registered) to achieve a very high level of well-being as well as a solid economic base.
So for a resident, this phantom bubble is noticeable to a certain extent.
The problem is precisely for foreigners who, for an obvious necessity, need to find an apartment to move to this continent.
The forecasts announce that, the impossibility for many buyers, to afford the luxury (because now it is luxury) to buy a property in Australia, will lead the latter to choose to sign a lease or, even worse, to opt for another country.
In doing so, the Australian brick market will tend to weaken and a price drop will be possible on the estimated (and above all hoped) threshold by the government.
We hope for better times!
In fact, Australia is trying to control the housing price bubble, especially in large cities, through the help of foreign real estate investments, which are oriented towards
more in brand new homes.
The real estate prices are so high that they give one of the biggest Australian cities, Sydney, the second most expensive city in the world, second only to Hong Kong.
Despite the volume of transactions is not so high, house prices have increased
suddenly.
Reason why, the Australian government, has started to reduce the strong demand for purchase, to remedy this stalemate that is anesthetizing the country, restricting the circle for the eligible buyers, only to an extremely rich target.
It is hoped that the prices of the brick, can be lowered at least up to 30% of the value of the building property, to return to a situation in the real estate market and free from these non-indifferent barriers.
The rules to protect all potential buyers, came into force as early as 2016 when the situation was less dramatic.
But the strong increase of the population (above all because of the young people who, every year, see in Australia the '' promised land '' for self-determination) has provoked a parallel increase in demand.
It should be noted that the cost of living in the Australian continent is one of the highest in the world, but anyone can, even with more jobs, (regularly registered) to achieve a very high level of well-being as well as a solid economic base.
So for a resident, this phantom bubble is noticeable to a certain extent.
The problem is precisely for foreigners who, for an obvious necessity, need to find an apartment to move to this continent.
The forecasts announce that, the impossibility for many buyers, to afford the luxury (because now it is luxury) to buy a property in Australia, will lead the latter to choose to sign a lease or, even worse, to opt for another country.
In doing so, the Australian brick market will tend to weaken and a price drop will be possible on the estimated (and above all hoped) threshold by the government.
We hope for better times!
