The world loves to buy Australian housing.
UBS is out with a research paper on foreign investment in the Australian housing market and the numbers will be fodder for people who claim that foreigners are driving up the cost of housing.
One in eight home sales is now a foreign purchase, said UBS. ‘‘Foreign investment now accounts for a record share (since 1991) of 12.75 per cent of the value of total dwelling turnover…up sharply from a trend of an 8 per cent share previously, and a trough of just 3.5 per cent in 09-10.’’
There’s also talk of fresh investment in Australia as Rio Tinto prepares to approve a A$5.1 billion bauxite mine.
Long story short: There are plenty of reasons to like AUD and the RBA could be talking about hiking rates before long.
