As a young nation Australia has been a net importer of foreign capital to develop property since Arthur Phillip sailed through the Sydney Heads in 1788 to found a Georgian offshore detention centre. This initial development of Australia cost the British taxpayer £84,000 to transport 732 petty thieves from the London slums in 11 ships along with the capital goods necessary to sustain a new colony. Foreign capital has been required to develop projects and buy real estate from the Sydney Harbour Bridge, the iron ore mines in the Pilbara to the $6 billion urban regeneration project that Lend Lease is undertaking at Barangaroo on Sydney Harbour.
Whilst there is no shortage of articles in the press about the evils of foreigners buying Australian real estate, as the fund manager of a Listed Property fund I am only concerned about the supply and demand for property and its influence on the valuations of the Trusts held in the portfolio. In this week’s piece we look at the impact of foreign investment on Australian property.
Read more here.