AUSTRALIAN PROPERTY ATTRACTS GROWING INTERNATIONAL ATTENTION

As the Australian property market continues to register annual growth of around 15%, a growing number of property professionals are looking to target the potential investors hitting the relatively untapped overseas market in the country.

The latest company to establish itself as a presence in the industry is Australianinvestmentproperty.co.uk, which aims to offer visitors to its site a selection of luxury properties, spread throughout Australia’s property hotspots. The site features off-plan and new-build investment opportunities in Melbourne, Sydney, Brisbane, and the Gold Coast.

Where the portal differs from other multi-country sites, is that all of its properties are available exclusively to UK investors, a USP that it hopes will attract potential buyers.

“We will make sure that previews match the buyer’s criteria in terms of style, location, and price range,” explained a spokesperson. “Thereafter, the company offers a full turnkey service for trouble-free purchasing. We can even offer finance to help buyers seal the deal they want.”

Agents can now also market their Australian properties and related services through lead generation site PropertyIndex.com

The site has recently started targeting Australian property professionals through a series of campaigns as the number of UK citizens emigrating abroad reaches record numbers.

The portal believes that with high numbers entering Australia, the rental and sales opportunities for agents is set to be lucrative – particularly as the Australian domestic market enters a phase of correction, putting many out of business.

Propertyindex.com managing director, Lee Bramzell, added: “Our flexible, commitment free, cost per lead model offers a great opportunity for agents in Australia to capture Brits before they even leave the country.”

Many Australian companies have already taken the initiative and directly marketed their properties towards the potential British expat buyer.

Large Queensland-based developer Ingles has recently launched a concerted marketing campaign towards UK agents, offering a range of commission and financial incentives and there was also a heavy Australian presence at this year’s EPEX exhibition held in London in April.

One of the veteran companies that have been marketing to international buyers is Australian Property Solutions, set up after its New Zealand company found a high level of interest for this service.

“Most demand is coming from the UK, USA, Asia and South Africa,” said the firm’s MD, Lyndon Fairbairn. “We have been focusing on investing into the major Australian cities such as Sydney, Melbourne and Brisbane. All three have very strong fundamentals that are conducive to strong appreciation in property values. Melbourne is always favoured too as overseas investors have no stamp duty payable when buying off-plan.”

New investment opportunity
Renters and investors who are looking for new ways to buy a slice of Australia’s $3.2 trillion market will soon have another option, property derivatives.

A deal signed between RP Data, Rismark and the Australian Securities Exchange will see the creation of Australia’s first residential property derivatives market.

The property index derivatives, likely to be launched around the second quarter of next year, will be traded at the ASX, and will use RP Data–Rismark Hedonic Index for measuring house price changes over time.

“A residential property derivatives market has the potential to allow individuals and institutions to cost–effectively access index–linked exposures to the $3.2trillion residential property asset–class,” said Christopher Joye, Rismark International’s MD. “Previously, the high transaction costs associated with residential property investment have made accessing this asset–class on a diversified basis difficult.”
 
A property derivative is a financial instrument whose price is dependent upon, or derived from, the value of an underlying real estate asset. The key advantage is the lower transaction costs. With traditional property investment, buyers generally have to come up with around $30,000 in cost for an average $500,000 property. Property derivatives also allow investors to increase exposure to the markets at lower costs and the enables those who are non–property investors to gain exposure into the market.

“Property is the last major asset class in Australia without a developed derivatives product, and while this is still a relatively new idea, it is a tool property professionals should not ignore as investors seek ever greater flexibility in relation to property investment,” said Luke Hartigan of Jones Lang LaSalle.

Property derivatives markets have flourished around the world with the UK currently having more than £7billion worth of over–the–counter commercial and residential property derivatives outstanding according to RP Data. Source: OPP

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