Australia beckons for Asian investors
With Sydney and Melbourne commanding already high prices – an inner-city one-bedroom home in Sydney currently commands up to A$750,000 ($984,000) – analysts expect market focus to shift to other cities where demand and prices are lower.
To ward off the threat of asset bubbles, Australian policy-makers raised interest rates to 4.75 per cent last month. But analysts say this will not put off Asian investors. Singaporeans, for example, can finance their Australian properties with loans pegged to a lower interest rate of about 1.5 to 2 per cent.