As the fallout from Brexit looms over the United Kingdom's property market, some property experts think Australia's property 'safe haven' could attract new foreign investment.
While Brexit uncertainty has crushed confidence in the British property market, some property experts predict it could mean big business for Australian home-owners.
Universal Buyers Agents property expert Darren Piper says possible restrictions on foreign ownership are making Australia's property market look more appealing than ever - and the current upheaval may see overseas buyers flock to the Australian property market, especially given sharemarket volatility.
“House prices in London have fallen for the fifth quarter in a row. This week we saw the pound tumble after the UK’s Prime Minister revealed her draft deal sending the share market into disarray. By comparison, our share market saw a boost this week following the news and we’re already seeing renewed interest from overseas buyers in local property," Mr Piper said.
Mr Piper says expects to see increased interest from overseas buyers and investors as the UK continues to battle with Brexit jitters.
“It’s natural for investors to look for safe havens in times of uncertainty. Australia’s property market has consistently grown over the past decade and we’re seeing record house prices in Sydney, Brisbane and Melbourne," Mr Piper told WILLIAMS MEDIA.
“It’s the perfect time for people to get their foot in the door. And it’s a great time as a homeowner to explore your options, maybe make a move or stay the course," Mr Piper added.
It comes as no surprise to Malcolm Gunning, president of the Real Estate Institute of Australia (REIA).
"The more sophisticated investor (it's not going to be the smaller investor), will look to come into Australia having been motivated by Brexit. The safe haven is certainly our dollar, which is currently sitting around 70 cents US. We are always of the opinion that if it drops below 70 cents, then not only will you get European money coming in, you'll also get Asian money coming in," he told WILLIAMS MEDIA.
"I'm not surprised that comment has been made. It's happened in the past. The British and the Americans are the primary (sophisticated) investors in our capital cities already. The British are the biggest owners of rural property in Australia, other than Australians and foreigners. So yes, they will definitely come here."
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