EXPATS and foreign investors could push residential property prices even higher this year as the falling Australian dollar prompts offshore buyers to enter the market.
A combination of low interest rates, a weaker local currency and surging house prices in Sydney, Melbourne and Perth might set off another wave of buying in Australia’s major cities over the coming months, CommSec economist Savanth Sebastian says.
“Australia’s starting to look a lot more attractive from a foreign investment perspective with the falling currency and that will probably show up more in the property market than anywhere else,” Mr Sebastian told AAP.
“It will be more prevalent, especially with an improving global risk appetite.”
He said foreign demand for Australian property was unlikely to wane, but it would take some time for enough new supply to come online.
RP Data figures released last week show that Australian home prices jumped almost 10 per cent in 2013, with house values in Sydney rising almost 15 per cent, followed by Perth with an annual growth rate of 9.9 per cent.