Abstract
We undertook an autopsy of the drivers of individual foreign real estate investment ‘bust’ in Australia through a new theoretical lens of ‘habitus’. Our autopsy data drew contours around the individual foreign real estate capital ‘boom and bust’ cycle, as well as the long-term commitment of professionals in the real estate sector to Australia’s real estate market. More specifically, we showed that the foreign capital ‘boom and bust’ cycle began in earnest in about 2010 (starting at A$8.7 billion), grew to A$72.4 billion in 2016–2017, and then declined to A$12.5 billion in 2017–2018. This decline in foreign capital into Australian real estate occurred within a domestic real estate market in Sydney that also started to slow in 2017. Based on 20 semi-structured interviews with real estate professionals in Sydney and public material culture data, we found out that the off-the-plan apartment sales and global policy landscape changes contributed to the decline of foreign real estate investment in Australia. The three possible implications for Sydney’s future residential real estate development: (1) The loss of investors, (2) the evolution of the labor force, and (3) the diversification of housing products, have been raised as part of a future research road map.
Highlights
Australia experienced rapid growth in real estate prices between 2010–2017 [1]
It should be noted that the Australian local living habitus has been protected by the local policymakers through policies limiting foreign real estate investment from 2017
The New Middle Class (NMC) from Asia that invest in Australia are heavily influenced by family plans for migration and education [22], which are different from the practices and motivations of ultra-high net-worth individual (UHNWI) and ultra-ultra-high net-worth individual (UUHNWI) investors
Summary
Australia experienced rapid growth in real estate prices between 2010–2017 [1]. During this period, there were concerns about the growing number of foreign investors purchasing property in Australia, especially regarding investors from China. Chinese with the boom and bust of foreign real estate investment in Sydney should be identified. This article focused, in particular, on why the Australian housing market has been a good choice for global real estate investors from 2017 to 2019, including global policy changes, the role of off-the-plan apartment sales, and the possible implications of the changes on the future housing industry in Sydney, namely: (1) The loss of investors, (2) the diversification of housing products, and (3) the evolution of the labor force
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
