Foreign real estate investment, residential tourism and the Australian residential property market

Purpose: This research aims to focus on the emerging determinants for the Australian residential property market subsequent to the Global Financial Crisis 2008. Design/methodology/approach: Quantitative models built on secondary data were tested on three residential property markets comprising metropolitan Melbourne and two key suburbs in the state of Victoria. The relationship between the house price performances and various leading Australian economic indicators was assessed. Findings: As a result of the increasing relevance of Asia Pacific private wealth in the Australian residential property market, non-traditional determinants such as residential tourism have emerged as significant in the Melbourne residential property market. Research limitations/implications: The result of this study can provide a better understanding on the relationship between the Australian residential property market and both the existing and emerging leading economic indicators. Originality/value: A better understanding of foreign investment activities will assist policymakers to effectively manage inflated Australian residential property market without compromising the steady flow of foreign real estate investment.