Australia is a perenial favorite with holiday home investors due to strong demand and a vibrant market. However, recent changes in some rules are relevant to foreigners.
Australia’s housing market is slowing, amidst modest economic growth. House prices rose by 4.65% in Australia’s eight major cities during the year to end-Q2 2016 (3.63% inflation-adjusted), a sharp slowdown from an annual rise of 10.53% a year earlier - and the lowest y-o-y increase since Q1 2013, based on figures from the Australian Bureau of Statistics (ABS). House prices increased 2.27% (1.9% inflation-adjusted) quarter-on-quarter in Q2 2016.
Melbourne saw the biggest increase, with residential property prices rising by 8.2% (7.1% inflation-adjusted) during the year to Q2 2016, followed by Canberra (6%), Hobart(4.9%), Brisbane(4.3%), Sydney (3.6%), and Adelaide (3.5%). On the other hand, residential property prices dropped in Darwin (-6.5%) and Perth (-4.8%) over the same period.
The mean price of residential dwellings in Australia was AU$623,000 (US$470,830) in June 2016, up 3% from the same period last year, according to the ABS.
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