Singapore has emerged as Australia's main source of foreign real estate investment, overtaking China.
A study by real estate technology group Juwai IQI has shown that investments by Singaporean investors have exceeded those of Chinese investors in recent years.
The Australian Foreign Investment Review Board (FIRB) approved $ 19.3 billion worth of Singaporean entity investments in Australian real estate during the two years between June 2018 and July 2020 .
This was more than the $ 13.2 billion investment by Chinese investors and institutions during the same period.
Investment from Singapore now accounts for 17 percent of total foreign real estate investment in Australia.
Over the past five years the interest of Singaporean entities in Australian real estate has increased sharply.
In fact, the city-state's FIRB-approved investments only reached $ 5 billion in 2016-2017, before rapidly climbing to $ 8 billion the following year and to over $ 9 billion over the next two years.
On the flip side, China's annual investment share in Australian real estate has fallen to 13%, from its recent high of 26% during the past year. 39; fiscal year 2015-2016.
Juwai IQI Group co-founder and executive chairman Georg Chmiel said that while Singapore's real estate investments in Australia have been largely driven by the city-state sovereign wealth fund GIC, individual home buyers have also become more active.
"Australia is like a big backyard for many Singaporeans. Perth is only a five hour flight away and the towns on the east coast are also relatively easy to reach. accessible, "Mr. Chmiel said.
"For retirees, second home buyers, families with school and university-aged children, and real estate investors, Australia is an obvious destination."
However, travel restrictions and border closures amid the COVID-19 pandemic have had an impact on the flow of foreign investment in real estate in Australia.
Nonetheless, Mr. Chmiel believes Singaporean investments have continued to increase despite global concerns about the pandemic.
"When the pandemic is finally behind us, we expect Singaporean home purchases to continue to increase," he said.
"The total value of Singaporean investments in Australian real estate will vary from quarter to quarter.
“A large portfolio acquisition by GIC or a Singaporean REIT may skew the numbers, but the trend is clear. Singaporean real estate investment is on the rise. "
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