Property investors in Australia and New Zealand are bracing ahead of the capital market recovery in 2022 as they take the opportunity to transfer greater foreign exchange (FX) sums to cash in from offshore investments.
OFX, formerly known as OzForex, found investors looking to sell or purchase assets overseas are capitalising on returns from record levels of monetary and fiscal support. Last October, property investment-related FX transfers increased by 16% compared to October 2020, but it is still down 13% compared to October 2019.
The main driver of this trend points to residential real estate, which has noted the most significant returns as opposed to commercial, retail or industrial properties, according to OFX.
Meanwhile, the average transaction value is experiencing an upward trajectory that surpassed even its pre-pandemic levels. Compared to the same period last year, it increased by 27% in October 2021 and is also up by 27% from October 2019.
Understanding how exchange rates can impact investment returns and utilizing available tools to navigate FX conversions are crucial to maximising the potential of multi-currency payments, regardless of where the market is headed.
