Real estate in Australian cities boom as Sydney prices rose by 12%

As borders reopen and international students return, foreign investors may be looking to quickly buy Australian property

According to Business Insider, Australia’s real estate market has been running red hot, but the return of foreign investment can spike prices up to new levels.  

New data indicated that while some capital cities like Melbourne and Sydney have experienced double-digit price growth, their experience has been ‘mild’ in comparison to other cities around the world.  

Sydney prices increased 12 percent or AUD140,000 (USD102,695), over the 12 months to March. As reported by Domain, median prices in Harbour City hit more than AUD1.3 million.  

Economic support, easy money, along will containment of the COVID-19 pandemic has led to the property boom and affordability concerns for buyers.  

However, globally, Sydney’s growth is thin compared to the 30 percent-plus growth seen in Los Angeles, Montreal, Toronto, and Auckland over the same period.  

Australia’s largest cities are comparatively closer to the ‘middle of the pack’, with Perth, Brisbane, and Melbourne all growing 9.7 percent, 8.2 percent, and 6.1 percent respectively.  

“Australia has an appealing story of strong but relatively measured price growth. It’s doing much better than global competitors such as London or Tokyo, where prices fell by six percent and seven percent respectively,” said an analyst.  

As Sydney and Brisbane rank among the top 10 most popular cities with Chinese investors, it raises the potential of Australia’s boom to continue when the country exits lockdown.  

More: Australian developers continue to build as they see an end to COVID woes

The strength of the market, pent-up demand, and the return of students will drive Chinese investment to recover.  

The Australian market is already strong despite the lack of migration, but further upward price pressure will attract buyers eager for a safe investment and afraid of missing out on an opportunity.