Foreign investment impact on Australian residential real estate market and housing affordability

Property Project Research

Contents
Introduction:...............................................................................................................................2
a) Background.....................................................................................................................2
b) Problem statement...........................................................................................................2
c) Aims and Objectives.......................................................................................................3
d) Research Questions.........................................................................................................3
Literature Review:......................................................................................................................3
a) Introduction.................................................................................................................3
b) Summary......................................................................................................................4
Research Methodology...............................................................................................................5
c) Data collection method................................................................................................6
Conclusion..................................................................................................................................7
References:.................................................................................................................................7

Title: Foreign investment impact on Australian residential real estate market and housing
affordability
Introduction:
The growth of foreign residents in Australia has start participating in the purchasing of the
residential houses. The purpose of this article is to analyse the impact of foreign investment
on making affordability in the housing market. The supply of residential area is increasing
with the demand of it from foreign investors. The price rate of the dwelling area is getting
increased due to the increase of demand. The legislative laws are developed in Australia to
promote local construction for the development of dwelling houses (KPMG Economics,
2017). The residential projects are purchased by foreign investors or domestic buyers. It
influences the housing living condition in the Australia. The people of Australia are looking
forward for investment in the residential area. The Gross domestic product rate of the
Australia country is increased to a high extent due to the foreign investment from various
sources in housing residential area.
a) Background
The increasing demand of the dwelling houses has resulted into the rise of price which is
around 7.25 % every year. The analysis of the residential prices in the last ten years, it is
found that the steady growth of 3% is increased. The price of the dwelling houses is increased
near about 6 times from his actual price. The GDP of the country is increased due to the
foreign investment in the residential area in Australia. The growth of economy helps in
increasing the living condition of the people. The performance of the Australian investor is
improving with the association and consideration of immigrant in the Australian policy of
real estates (Masron and Kepili, 2016). The new opportunities are created for the property
dealers and buyers. The foreign residents are also participating in the process of purchasing
the houses (Sharpnel, 2016). The recent studies help in providing the information that 10 to
20% of the purchase of dwelling houses is done by the foreign investors. The population
explosion also increases the demand of dwelling houses for the local people and immigrants.
b) Problem statement
The major problem which exists with the housing investment is the increasing prices of the
dwelling areas due to the increasing demand from foreign residents. The financial condition
and stability of the residential people get disturbed with the investment in housing area.