Australia continues to be a significant source of foreign investment, with the value of approved investment rising to about $248bn in 2015-2016, according to a newly released report from the Foreign Investment Review Board (FIRB).
The value of approved investment in 2015-2016 saw an increase of over $55bn compared to 2014-2015. This surge was predominantly driven by an increased investment in the real estate sector. “China ($47.3 billion) remains our largest source of approved foreign investment, followed by the United States ($31.0 billion),” the report said.
The FIRB report further noted that foreign investment in real estate continues to be focused on new dwellings, which is in line with Australia’s policy of encouraging residential real estate investment that boosts housing supply. Investments in new homes made up one-third of total foreign investment in the country last year in terms of value.
Charles Pittar, CEO of Juwai.com, a Chinese language international property website, welcomed the report’s findings. “The new report shows that the regime is working. Foreign investment is going right where Australia wants it and is one of the fewbright spots of the economy,” he said.
Pittar also noted the positive impact Chinese investment has had on Australia. “Every Chinese dollar invested landed in the pocket of an Australian somewhere. Chinese investment translates directly into jobs, tax revenue, economic growth and new housing construction. There’s nothing about it that any reasonable person can object to. Frankly, China has been a godsend for Australia these past 10 years.”
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