Finland Times

 

Record amount of foreign investment in Australian property market is boosting the local economy, an ANZ bank report said on Thursday.

     

The ANZ-Property Council survey said that foreign investors, many of who are Chinese, were purchasing more than 25 percent of homes sold in New South Wales and Victoria.

     

Thanks to the strong property sales, home values have risen, building activity has increased and there is more employment in the sector.

     

The report said increased property investment balances weak business and consumer confidence, and subdued economic activity caused by the slowdown of Australia's mining industry.

     

"The property sector continues to be the bright spot on the broader Australian economic outlook," ANZ chief economist Warren Hogan said in a statement.

     

"Supported by the weight of investor capital, the property sector is not just creating capital growth, but is expecting to generate employment growth and increased building activity, particularly in the areas that are attracting foreign investor capital such as Sydney, Melbourne and Brisbane."