Rising dollar hits Aussie property market

Monday 18 October 2010

Article by Mozo

Australia's rising dollar is deterring overseas buyers from investing in the country's property market, an industry expert has said.

In an interview with the Australian, Harry Triguboff, the country's biggest private apartment builder, claimed that sales at his Meriton Apartments have fallen 60 per cent since the dollar's surge.

According to the newspaper, Chinese buyers make up about 80 per cent of the approximately 1,500 apartments Meriton builds and sells each year.

"They are worried that if the Australian dollar goes down, they will lose money," Mr Triguboff said. "They compare our [apartment] prices to their prices. In their minds, our prices have gone up 20 per cent [due to the rising currency]."

He also suggested that falling overseas interest in new apartments would lead to a weaker domestic building industry but added that Chinese buyers will keep coming back because of their love for Australia.

Consumers aiming to land a property and secure good deals may wish to compare home loans in search of the best options. Mr Triguboff's comments come after the Australian dollar hit a record US99.94 cents last week.

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