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Economy

Sam Biggins: Australian property shines despite wavering economy

In January, Dalian Wanda purchased Gold Fields House, center. Near Sydney Opera House, the building and an adjoining property were bought for almost A$500 million. (Photo by Nikkei Sydney Bureau)

2014 was a vintage year for capital flows into Australian real estate from Asian developers and investors, with a record 8.7 billion Australian dollars ($6.63 billion) worth of transactions recorded in spite of concerns about the country's economic prospects. The flow of capital from these groups shows no signs of abating in 2015 as new classes of buyers emerge and Australia steps up its integration with the region.

     The wave of investment has been driven by two primary factors. The first is real estate cooling measures in Singapore, Hong Kong and China, which have caused residential transaction volumes in these economies to flatline while values have stagnated or fallen.

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