Overseas investors will be keeping an eye on the AUD rather than the fall or rise of $300 000.
Look to the gold coast property market where $5million apartments lie idle for the last few years. There is no need to worry about rents with 'Land Banking', when the dollar has gone from 75 (pre GFC) to parity then that's a 33% increase in capital without having to worry about an appreciation in its stated value.
So a $5m apartment bought three fours ago, has a a value of 6.7m. Good time to sell as an overseas investor no ?
I trade FX and have the dollar retracing back to 80.00 late next year. When property is already falling (and looks to be falling) and the dollar is strong, how do you think these overseas investors will react when (if) the AUD falls back below 90.00 (with historical lows of 60.00 not far from memory.
