Country Guides Country Guide: Australia

Date Published:

28/05/2008

Australia has long been a favourite destination with Britons looking for a change of lifestyle, coming first in virtually every poll you will ever read of countries to where we would most like to emigrate.

The Property Market

Naturally, the sunny climate, laid back English-speaking Aussie character and cheaper cost of living each have an impact, one that has been ever more heightened by the country hosting two high profile world athletic events since the turn of the Millennium.

"The Olympic Games in Sydney has had a huge effect on the property market, especially in attracting investors" says James Kingdom, research analyst for Colliers CRE, an agent with www.newskys.co.uk. "In the five years prior to the 2000 games, house prices grew by 50% in Sydney, up to 70% in the Homebush area near the stadium, compared to 38% for the rest of Australia. However, the impact of the Commonwealth Games in Melbourne has not been that obvious, as many of the facilities were already in place."

Nevertheless affordable house prices in Melbourne- voted 2005's most attractive destination in the world in which to live for ex-pats in a survey of 130 cities worldwide undertaken by London-based Economic Intelligence Unit (EIU)- continue to appeal to Britons looking for a new life down under, or as an investment opportunity.

For example, new apartments at Chevron, Melbourne- where the TV soap Neighbours is filmed- start from only £120,000 and include 5% rental guarantee for two years.

The apartments are particularly attractive because "In Australia, foreigners can only buy new properties or bare land" says Nick Shinner, agent for www.newskys.co.uk

"But it's actually difficult for foreign buyers to get anything, as new developments are selling out even before launch in regions such as Perth, which is performing very strongly- around 15% up year-on-year."

Perth, the only large city on the west coast, might seem isolated from the rest of the country, whose other major conurbations are mainly on the south and east coasts, but it ranks very highly in international quality-of-life surveys, and property prices are generally lower than on the eastern seaboard. For example, properties at 375 Hay Street start from only £115,000 in a complex of 80 one and two-bedroom homes, which also includes a swimming pool, gym, sauna and gated security.

Perth may be the pearl of Australia's west but Sydney is undeniably the jewel in its crown. The largest and most cosmopolitan city, it has a relaxed atmosphere, a landmark waterfront opera house and the world famous Bondi Beach. Understandably, house prices are highest in Sydney- the Savills/ABS index shows the median housing price in Sydney at A$476,000 with Melbourne at A$320,000 and Brisbane A$318,000, but perhaps surprisingly Sydney's property market has seen a downturn since 2003.

"The East Coast property markets in Australia remain depressed, having come off a strong residential property boom that peaked in 2003 (house price inflation 1997-2003 was 112%)," says Chris Freeman, national research director, Savills Australia www.savills.com.au. "Melbourne and Brisbane have posted only moderate capital gains of 3% in the past year, while Sydney's residential property values have fallen by an average of 8% since 2003."

Of course, for Britons looking to resettle in Australia the cooling house prices mean that their pound goes further downunder. Gina Machado, director of Sydney-based real estate buyers' agency, www.FindersKeepers.com.au sees the price reductions in Sydney as an opportunity for British buyers to pick up a piece of Australia on the cheap, "Driven by a shortage of good-quality property on the market," she says, "there is renewed interest from home-buyers, investors and expatriates, all ready to buy now before prices really start to pick up again."