Impact Of Foreign Direct Investment Essay

Question:

What is the Impact of Foreign Direct Investment on real estate grounds of Australia?

Answer:

As per the annual report of the Foreign Investment Board, last year the Chinese buyers dominated the foreign investments especially those who bought new homes in Melbourne and Sydney of Australia. Some of the sources considered that there was a rapid increase in the investment policy of the real estate in Australia. China is regarded as the largest source in the investment of the real estate. Almost a portion of the real estate has been granted to the Victorian homes and the rest to the NSW. With time, the investment in the real estate also rose to almost 38%. US is considered to be the number one in case of the foreign investment that includes finance as well (Li, Huang and Song 2017).

The foreign buyers in the Australian Taxation Office that included selling of one’s home when the permanent visa expired implied a forced sale of the properties. NSW introduced a new format last year that suggests that the foreign buyers did little in order to dampen the demands required for the new home. This was earlier done in Victoria even in the year 2015 (Yuet al. 2017). The newly formulated regulations have made the Chinese people in a severe problem when it comes to invest or buy new residential areas or even in the second hand property in different cities but mostly in Shanghai and Beijing. These are the main reasons that fuel their instances to buy property outside their country or rather in other terms the offshore. However, all these approaches are slowly going vague, as the Chinese Government has become very strict regarding these offshore transactions. Hence, the Chinese people might now feel difficulty to buy projects in Melbourne and Sydney in Australia.

References

Li, X., Huang, S.S. and Song, C., 2017. China's outward foreign direct investment in tourism. Tourism Management, 59, pp.1-6.

Yu, X., Dosi, G., Grazzi, M. and Lei, J., 2017. Inside the virtuous circle between productivity, profitability, investment and corporate growth: An anatomy of Chinese industrialization. Research Policy, 46(5), pp.1020-1038.

How to cite this essay: