Foreign investors are still keen to spend their property dollars in Australia despite our tax regime, according to analysis by HLB Mann Judd.

Melbourne partner Josh Chye says investor demand from Singapore, Hong Kong and Malaysia is increasing while inquiries from mainland China have dropped.

“Australia remains an attractive jurisdiction despite the relatively high taxation rates,” he says.

“We have higher than average tax costs for foreign buyers of real estate than our global neighbours, including on land tax.

“This has increased consistently over the past seven to ten years at both the state and federal level, and the additional impost is a burden for foreign investors in real estate.”

Chye says while the tax rate is an issue that investors need to consider, their concerns are offset by Australia’s status as a stable market for real estate investors.

He says strong property price growth of late made it even more appealing, particularly Sydney and Melbourne markets.