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Strong Economy and Rental Market Could Make Adelaide More Attractive than Florida - 22 December 2010

With similar exchange rates to the pound, British investors are starting to once again consider Australian over American property, according to real estate experts.

One of the areas of increasing interest is Adelaide. The South Australian city is great for buyers wanting to rent out properties, as vacancy rates are currently less than 1 percent in the region, according to real estate agents. Newer homes and developments are consistently occupied and being swept up by local and foreign investors alike, they say.

In comparison to the rest of the country, Adelaide’s property rental market is remarkably steady. Most of Australia’s real estate market has experienced price irregularities over the last few years, particularly in the more popular areas of Sydney and Perth, which have hence sent British buyers looking towards to the U.S., where home prices have continued to drop drastically especially in America’s sunny, beachy areas like Florida.

Adelaide’s economy also remains the strongest in all of Australia — which is no modest feat, considering Australia is often cited as one of the few countries to escape the recession nearly unscathed.

Add a similar exchange rate (£1 = Aus $1.61; £1 = U.S. $1.59, as of Nov. 22) to its steady property market and economy, and property in Australia is looking to be a better investment pick over the U.S., say economists.

The Chinese have already become wise to Australia’s potential for rentals and resales. In the 2009 to 2010 financial year, the Chinese outspent the British in Australian property, snatching up Aus $71.5 million worth of homes. However, economists are predicting the return of the British buyer to the Australian market in the New Year.

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