Australia’s property market could see a new spike in interest from foreign investors off the back of yesterday’s election win by Donald Trump.
REA chief economist Nerida Conisbee told News.com that the economic uncertainty surrounding Mr Trump’s victory could send investors towards Australia’s property market which is seen as somewhat of a safehaven.
“Australia will be a beneficiary of this as it is considered to be one of the safest markets in the world,” she said.
“In uncertain markets, people don’t like to buy.”
Matthew Tiller from LJ Hooker also stressed the importance of confidence for investors, and should be lacking now that Donald Trump has won the presidency, it could well see investors bail out of the USA and head for markets like Australia.
“Nearly all parts of the Australian economy are intrinsically linked to the performance of the US,” he told News.com.
“Our equity markets take their direction from the US and the Australian dollar is impacted by the strength of the US economy.”
“It’s therefore important that there is confidence in the future policy direction of the US Government and that of the president.”
“A Trump victory adds sovereign, or crown risk, to inward investment into the US, affecting the amount of capital, the type of investors and the level of return expected.”
“It makes investment in Australia more attractive for large foreign developers and institutions, as well as high net worth private buyers looking to purchase residential property.”
Mr Tiller said it might also mean a new spike in interest from Chinese investors who were looking to invest in cities like New York and Los Angeles and might now consider investing Down Under instead.