Foreign investment biggest price driver in main capitals: API's Property Directions

The Australian Property Institute’s 33rd survey on Property Directions has seen international investment flagged as the main driver, of prices and demand in Sydney, Melbourne, Brisbane and Perth.

The results describe international investment as a "significant" to "very significant" factor in the cities' demand levels.

Surveying valuers, fund managers, property financiers and property analysts, the survey noted that while in Brisbane fewer participants than those in Sydney and Melbourne noted international investment, it still emerged as the main driver.

A similar trend was seen in Perth, where smaller numbers again suggested international investment.

In Melbourne, 95% put “Foreign Investment” in the "significant" or "very significant" category. While in Brisbane and Perth this fell to 68% and 55% respectively.

In Sydney, this figure sat at 96%. In May, it was recorded with 88% of respondents noting it as significant or very significant, and 75% of those in Melbourne putting it into this category..

Supply was the second most influential driver noted in Sydney and Melbourne, while recording a joint second with Self Managed Super Fund (SMSF) negative gearing in Perth and Brisbane.