by Cheryl Lim

AUSTRALIA has become an even hotter destination for property-crazy Singaporeans, with 35 to 40 per cent more homes bought last year.

This was an increase from the average annual growth of 20 per cent since 2003, said companies marketing the properties.

Lured by the country's close proximity to Singapore and other favourable attributes, Singaporeans are increasingly buying condominiums and houses Down Under as their second or retirement home.

Said Ms S. H. Han, who bought an apartment in Melbourne through Austpac International:

'The relaxed lifestyle and beautiful weather are key in my decision to invest there.'

Others buy apartments for their children who study there.

Cities popular among Singaporeans include Sydney, Melbourne, Perth and Brisbane.

According to Mr Ivan Hoh, executive director of PropNex International, two-bedroom apartments in the range of A$400,000 (S$528,532) to A$600,000 are popular.

Singaporeans also like places near educational institutions.

Said Mr Charles Griffin, general manager of Central Equity, an Australian property developer:

'Investors tend to focus on areas that have rental demand - locations close to places of employment and universities are highly sought after.'

Buyers of properties in Melbourne and Brisbane, the two most popular cities, can expect rental yields 'ranging from 4 to 6 per cent per annum', said Mr Alex Wong, general manager of Brooke International, which markets Australian properties.

The median property prices of major Australian cities have a projected growth of about 16 to 22 per cent in the next three years, Mr Wong added.

This is largely due to fewer new property approvals, as the government has been restricting new land releases, as well as the country's growing population.

But as in any investment, investors must do their homework before they make a commitment, said Mr Adam Tan, corporate communications and marketing manager of PropNex.

There are, however, safeguards in place. Said PropNex International's Mr Hoh: 'All buyers of brand-new apartments pay 10 per cent of the price and nothing else until completion. This deposit is placed in a developers' lawyers' trust account, which will be fully refunded with interest if the project does not go through.'

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