Australian property demand tipped to grow

Demand for Australian property among foreign investors is growing and set to rise further, it has been predicted.

Malaysian estate agency Jalin Realty International has said the level of demand is high, with chief executive Ian Chen telling Star Biz: "We are definitely getting a lot of enquiries."

He added that the weakness of the Australian Dollar against the Malaysian Ringitt is helping to attract buyers from the latter country, although the paper also noted that an agent from Australian property firm LJ Hooker stated: "The bulk of the foreigners buying Australian properties is from Britain."

The agent said Victoria is the most popular location because of the level of state aid for first-time buyers and lower stamp duty charges for off-plan buyers.

Positive signs in the Australian property market include figures from the Housing Industry Association that there was a 0.5 per cent increase in the number of new homes being bought in April compared to March, with this figure 22 per cent higher than its floor level in December.