Damon Krongold On Foreign Investment

Market Insights
8 years ago
3 minutes

Foreign Investment is by no doubt, dominating parts of Melbourne’s real estate market. Specifically, it is off-the-plan apartments sales that has benefited so significantly by these market interests. 

Damon Krongold, Director of Project Marketing at Beller Real Estate, has applauded Melbourne’s alluring cultures, and highlighted why it is that Melbourne is so attractive.

"There is no question that there is a very strong Chinese element to our foreign investment," said Damon Krongold, "the interest coming from China, as well as those in greater-Asia and Malaysia, is continuing to grow, and is growing rapidly. With large and established Asian communities in both Melbourne and Sydney, the adoption period for investors, or for those buying for their families, is quick, easy and almost effortless. Specifically, the Chinese, who prioritise education, both secondary and tertiary, see Melbourne’s possession of a variety of high quality institutions, ranging from co-ed and unisex private schools to Melbourne and RMIT Universities," said Krongold.

Their view of Australia, and specifically Melbourne, is as a safe environment for their children, and their eventual families, to grow up and live. Additionally, and taking into account Singapore and Malaysia, they recognise the importance of a strict judicial system. Zero-tolerance attitude towards certain acts, that both Melbourne and Sydney implement, go hand in hand with Asian beliefs. 

The identification that we are a safe nation that has a strong emphasis on community and education, coupled with the fact that it is run by a (comparatively) non-invasive government, makes Melbourne a haven for both property and financial investment. 

Progression in foreign currency has undoubtedly helped. Singapore used to be around 15-20% devalued against our Australian dollar, however, today, they have appreciated dramatically, whilst  we have dropped on the wayside. With their industrial prowess and levels of foreign reserve, they often reach parity, and for an investor wanting to get into the Western market, Australia is ideal. They look at our apartments with the conversion in mind, and they see a very enticing place to invest. 

Being the melting pot of cultures, that Melbourne is known as, whether it be Greek, Italian, Eastern European or Chinese influence, has led to a plethora of cafes, restaurants and bars. All of those multinational cultural based communities as a result have a contributed to our cultural entertainment throughout Melbourne. Then you get to our coffee culture, to which it was initially foreign, and now we are the coffee-leader of the world, yet we’ve embraced the best that is European. These are the basic draw cards that are attracting people in Melbourne. We are still not as heavily concentrated or populated as Sydney, which is a big plus as well. Melbourne is sprawling, less-dense, and easier to get around. 

Putting all our preconceptions aside, it is these things; infrastructure, culture, entertainment, safety and affordability, that has made Melbourne so attractive."