Community

Its time for Indian investors to buy into the real estate market in Australia

Its time for Indian investors to buy into the real estate market in Australia

India must act

By PAUL McKENZIE

In the second part of this series (Check first part here), we reviewed inroads made by Asian investors into purchase of commercial properties in Australia. In this concluding part, we take a look at how Indian investors will benefit in being a part of the ‘Asian Century’.

Others examples of Asian foreign investment in Australian real estate during 2015 includes Singapore’s Philip Lim acquisition of Melbourne’s office tower on 600 St Kilda Rd for $81.5 million. Singapore’s Cache Logistics Trust acquired three industrial properties in Sydney, Melbourne and Brisbane for over $70 million. Hong Kong-listed China Aoyuan Property Group with local player Ecove, bought Sydney’s 130 Elizabeth Street office tower for $121 million. Malaysia’s Mulpha Group acquired Norwest Marketown in Sydney’s Norwest Business Park at Baulkham Hills/Bella Vista for $120 million. China’s Fosun Group has entered the Australian property market, purchasing the North Sydney office tower on 73 Miller Street for $116.5 million. Hong Kong billionaire Tony Fung’s Aquis Entertainment has paid $160 million for the Sheraton Mirage Resort on the Gold Coast. The Foreign Investment Review Board has given Singapore REIT Starhill Global Real Estate Investment Trust approval to acquire the Myer Centre in Adelaide for $288 million.

Recent Free Trade Agreements (FTA) with China, Japan and Korea also focus on encouraging more foreign investment in Australian real estate, allowing these countries to enjoy commercial property thresholds of $1.094 billion similar to the United States and New Zealand, rather than the uniform commercial property threshold of $54 million restricted to other countries. This came into place for Korea in December 2014 and for Japan in January 2015 (Source, FRIB website). This is good news in the Australian commercial property sector, with the residential property sector enjoying a boom with new residential properties bought by foreign buyers/investors taking advantage of low interest rates. India is the next destination for Australia with FTA relations, and Prime Minister Tony Abbott is keen to get Indian investors interested in the real estate market here. The last Taj Group of Hotels sold their Sydney property, but maintains a local presence with an office in Sydney, looking to re-explore such opportunities here.

India is missing in action when it comes to foreign investment in Australian real estate, but it is expected to become a major player in the few years, as it becomes a major trading partner with Australia to rival China’s leading position.

Whist foreign investment of Australian real estate flourishes, it is instrumental that we continue the ‘Asian Century’ trend with strong growing business, trade and investment relations with our Asian neighbours. Recent announcements of tougher foreign investment rules in property with the FIRB can put a damper on foreign investors, especially at the lower end with residential property, that are required to pay hefty $5,000 application fee for FIRB approval to acquire property. When announcing such review and tougher new rules, recommendations from the House of Representatives Standing Committee, chaired by MP Kelly O’Dwyer in 2014, included establishing a national register of land title transfer system to track foreign investment in residential real estate. Already coming into place soon, is a national on-line property exchange system – PEXA – for settlements with major banks and their settlement agents. Simon Henry, co-chief executive of the Chinese language website Juwai.com where many offshore buyers look to buy Australian property, said: “There is no other country that charges fees to foreign investors that is actually seeking foreign investment.”

Federal Treasurer Joe Hockey commenting on the 2013/04 FIRB annual report says, “Continuing increased investment interest in Australia by sovereign funds from North America, Europe, the Middle East and Asia are demonstrating Australia’s ongoing competitiveness as an investment destination.” Recently, the Victoria government has introduced from July 1, a 3% foreign buyers tax, to cash in the foreign investment in real estate growth.

The Indian Telegraph Sydney Australia

Its time for Indian investors to buy into the real estate market in Australia

Community

More in Community

Maddington man who's claimed division 1 six times reveals his winning lotto strategy

Maddington man who’s claimed division 1 six times reveals his winning lotto strategy

The Indian TelegraphNovember 20, 2017
Police seize 700kg of cocaine and arrested three men in international drug trafficking bust

Police seize 700kg of cocaine and arrested three men in international drug trafficking bust

The Indian TelegraphNovember 16, 2017
Popular swimming spot shuts down

Popular swimming spot shuts down

The Indian TelegraphNovember 13, 2017
Why the dual citizenship saga wouldn’t have played out this way under Tony Abbott

Why the dual citizenship saga wouldn’t have played out this way under Tony Abbott

The Indian TelegraphNovember 6, 2017
Teen critical after Blacktown shopping centre stabbing

Teen critical after Blacktown shopping centre stabbing

The Indian TelegraphNovember 2, 2017

Murder charge laid after Ms. Parwinder Kaur dies from burns in 2013

The Indian TelegraphNovember 1, 2017

Video of Ms. Parwinder kaur’s husband revealed

The Indian TelegraphNovember 1, 2017
parwinder

Husband of Parwinder Kaur arrested following her death in Sydney’s north-west in 2013

The Indian TelegraphNovember 1, 2017
Abbott's belief in India and political conservatism

Abbott’s belief in India and political conservatism

The Indian TelegraphOctober 31, 2017
Jie Curtis has been jailed for at least seven years for the ‘terrifying’ attacks

Jie Curtis has been jailed for at least seven years for the ‘terrifying’ attacks

The Indian TelegraphOctober 31, 2017
Brisbane man stabbed to death after investigating power cut to his Kuraby home

Brisbane man stabbed to death after investigating power cut to his Kuraby home

The Indian TelegraphOctober 30, 2017
Traffic delays on Sydney Harbour Bridge after crash

Traffic delays on Sydney Harbour Bridge after crash

The Indian TelegraphOctober 25, 2017
Chhath 2017: Delhi Government Announces Public Holiday On Chhath Puja

Chhath 2017: Delhi Government Announces Public Holiday On Chhath Puja

The Indian TelegraphOctober 25, 2017
We Finally Have A Real Pic Of India From Space On Diwali

We Finally Have A Real Pic Of India From Space On Diwali

The Indian TelegraphOctober 23, 2017
'It Was Going To Eat Her' - Australian Teen Survives Deadly Shark Attack

‘It Was Going To Eat Her’ – Australian Teen Survives Deadly Shark Attack

The Indian TelegraphOctober 23, 2017
What is Diwali? Everything you need to know about the Festival of Lights

What is Diwali? Everything you need to know about the Festival of Lights

The Indian TelegraphOctober 20, 2017
A taste of Bollywood in Hobart’s CBD as Franklin Square hosts Diwali, the Indian festival of light

A taste of Bollywood in Hobart’s CBD as Franklin Square hosts Diwali, the Indian festival of light

The Indian TelegraphOctober 20, 2017
Dhanteras 2017: Why do you buy gold, silver and utensils on this day; and things to remember while buying

Dhanteras 2017: Why do you buy gold, silver and utensils on this day; and things to remember while buying

The Indian TelegraphOctober 17, 2017
Official launch of Adani's Carmichael mine cancelled

Official launch of Adani’s Carmichael mine cancelled

The Indian TelegraphOctober 16, 2017
Diwali festival to light up Blacktown Showground this Sunday

Diwali festival to light up Blacktown Showground this Sunday

The Indian TelegraphOctober 14, 2017

Inside the mind of Ruma Mundi

The Indian TelegraphOctober 12, 2017