I’VE ALWAYS FELT that Australia is the lucky country, and recent developments have only confirmed this. While the pandemic and the war in Ukraine have battered global markets, Australia has fared very well. Our economy remains healthy, unemployment is still low, and now — with borders fully opened — we’re poised to welcome an influx of people, with both expats and immigrants expected to flock to our shores later this year in search of a better life.
This, of course, will be a boon to the Australian property market, particularly the luxury sector. At Kay & Burton, we’ve had an astonishing number of enquiries from interested buyers in Hong Kong, London and New York. This is backed up by data from online searches and other indexes, with many global ultra-high-net-worth individuals planning to buy property in Australia in 2022, as Kirsten Craze writes in her article (p28).
Research by the team at NAB, who are our trusted partners, also points to a buoyant high-end property market, with a number of record-breaking sales occurring in the eastern states already this year (p32). Much has been made of recent interest rate hikes, but in historical terms they are still low and not likely to affect the upper end of the market. All eyes will be on the new government’s economic strategy in the months ahead. With our close ties to Asia, we’re in the engine room of the world, and our economy will continue to grow.
The return of immigration and especially foreign students will be crucial to drive much-needed stimulus to the CBD. Going forward, Australia would do well to diversify its trade relations in Asia and move away from relying on China, according to NAB group chief economist, Alan Oster (p12). Although international markets are under pressure, he believes Australia will avoid a recession, which is good news for all. Winter is upon us, but I hope you make the most of border restrictions lifting and travel to warmer parts of Australia and the world, including some of my favourite cities, Milan (p14) and Paris (p52). Don’t forget to bring our third issue of “The Luxury Report” with you. The feedback we’ve received has been incredible, and we’ve certainly enjoyed sharing our knowledge with you.