On the contrary, the turmoil in the global financial markets could actually be good for the real estate owners in Australia.
According to Financial Review, Sydney and Melbourne commercial property markets are among those that can actually benefit from the unstable global financial markets. However, it should be noted that additional investment from China should be treated with uncertainty. It is yet to be determined if Chinese investors would continue to buy additional apartment as more units are being developed at record numbers.
In a previous report, Australian developers are not worried that the Chinese government has begun measures to control outflow of cash from China. According to CBRE senior managing director Rick Butler there has been no change in Chinese investing activities in Australian real estate market and added that he does not even expect that it would slow down.
Moreover, co-founder of real estate website juwai.com, Simon Henry, believe that the Chinese investors will continue to buy more properties in Australia's property market. He even believes that China's motive is actually to make the currency tradable so money actually outflows and goes into real estate overseas.
But locally, markets hard hit by cheap oil prices like Alberta, Calgary and Pert see decreasing home values, rising vacancy rates and fewer home sales but despite that investors like Brookfield believes that overall Canada is in good shape and sees opportunities even in these hard-hit oil markets. Brookfield is said to be planning a shopping spree in markets like Calgary and Alberta.
According to Financial Review, overall the financial instability in the global market is actually doing the Australian real estate a favor and one reason is that investors are looking at more stable assets or tangible assets to add to their portfolio. It is a good time to enjoy cheap loans as the central bank is cutting interest rates to stimulate investments through cheap loan.
