Currency exchange 'slowing Australian property investment'

Currency exchange rates are the main reason why Britons have become less interested in investing in property in Australia, it has been claimed.

Foreign property hunters appear to be less keen on the country down under as Rightmove Overseas revealed searches for Australian property declined by 27.44 per cent during the year to April 2010.

The country showed the biggest drop in the top 20 countries.

Christopher Chadd, head of research at Property Frontiers, said that while there were many factors involved in the dip, currency exchange rates were most likely to be the biggest cause of the change.

"Historically you could get $2.40 to the £1 and now it is running at about $1.70 and this is making property far too expensive for UK investors," said Mr Chadd.

He added: "Couple this with an economy that never really experienced a recession and has seen property prices actually increase over the past two years and you have a market that is wildly over-inflated and unaffordable to anyone without deep pockets."

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Posted by Eleanor Ward