MARKETS
Markets
Australia
Australia has an enviable Western-style capitalist economy with a per capita GDP on par with the four dominant West European economies. Housing prices probably peaked in 2005, diminishing the prospect that interest rates would be raised to prevent a speculative bubble. Since this peak the market softened in the major centres, with some drop in values experienced in Sydney and Melbourne. Other places like Perth and Adelaide have seen prices still trending upwards, while Brisbane tended to level out.
Conservative fiscal policies have kept Australias budget in surplus from 2002 to 2005, and in 2006 the Treasurer announced that Australia was ‘debt free’. It is little wonder Australia is often referred to as ‘The Lucky Country’.
Why invest in Australia?
Population Growth: Population growth is the key driver of demand for housing. In Australia, the total estimated resident population has increased, on average, by 240,000 persons per annum over the past five years. The housing requirements of this ongoing increase in population must be met through the construction of new dwellings.
Strong Economic Forcast: Rising output in the domestic economy, robust business and consumer confidence, and rising exports of raw materials and agricultural products are fueling the economy. Australias emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economys strength.
Stable Investment Environment: Despite some recent small shifts with interest rates increases – the sentiment in the investment community is positive with a widespread belief that the demand for housing growth will continue to outstrip supply resulting in another upward trending cycle over in 2007-2008.