Real sector experiences boom

The influx of foreign investment to Australia’s real estate sector, is an indication of the numerous opportunities that abound the country, experts say.

Notable, is the recent moves by Chinese investors to pump in funds for the development of Australia’s inner-cities.

The preference for the inner city housing sub-sector of Australia, has caused relative growth in the country’s economy, as reported by a recent report by CBRE Group.

Speaking further, Jacob Fong, CBRE Senior Research Analyst said "The increase in turnover across these markets is a clear indication of the increasingly strong demand for residential development sites, largely being driven by foreign investment. The buyer demand has transformed the inner city real estate markets in all three cities, where the highest and best use for sites has traditionally been commercial."

Fong also added that "A further factor in the increased level of inner city construction has been a demographic shift across Australia towards smaller households. The traditional preference for detached homes is being challenged, with greater acceptance emerging for smaller units in inner city areas.”

In Australia, the high cost of housing in the cities, has driven dwellers to move to the inner cities, thereby creating opportunities for investment in the sub-sector.

Here are some tips for investing in the Australian real estate sector.