Last week, ‘Highrise Harry’ Triguboff’s mouthpiece, Robert Gottliebsen, claimed that Chinese buyers were returning to Australia’s apartment market in what he described as a good sign for both the international student industry and the broader economy.
Since then, sources from within the property industry have countered this claim, saying that foreign demand has in fact tanked.
Here’s REA chief economist, Nerida Conisbee:
It’s only natural for some prospective homebuyers to shy away from purchasing property during uncertain economic times. But the coronavirus pandemic has caused one of Australia’s keenest property investor groups to drop off.
After years of increasing Chinese search activity, it has finally started to decline in Sydney and Melbourne. Activity had peaked when both major cities started experiencing better property market conditions last year…
Broadly speaking, Chinese search activity on realestate.com.au is overwhelmingly down.
In the same vein, searches from Hong Kong were strong from mid 2019 as a result of political instability, but they have also fallen significantly since the health pandemic took hold.
And here’s Domain:
Australia’s international buyer market has, in effect, gone in to hiatus as reports emerge that some overseas buyers are refusing to purchase anything without getting into the country to see a property in person first…
And with international travel restrictions in place due to the coronavirus crisis, it could be up to 18 months before the market returns to anywhere near full activity.
Fletchers Real Estate Canterbury director and auctioneer Tim Heavyside said the local market was on hold.
“Numbers across the board are right down, including international buyers,” Mr Heavyside told Domain. “There’s a hindrance on sales as buyers from overseas aren’t able to see properties.”
Sydney’s market was experiencing similar low numbers of buyers from overseas in the current market.
Christies International Real Estate director Ken Jacobs said international buyers were wanting to inspect before buying…
“I say we’re in a void at the moment,” Mr Bell said. “Early last year we would have Chinese buyers come into our office daily and buy one or two apartments, that’s totally stopped now.”
Gottiboff’s suggestion that Chinese demand was rising was always absurd, given the tight restrictions on travel ban, the collapse in Chinese international student numbers, as well as the growing diplomatic tensions between Australia and China.
With international travel likely to be on hold until next year, demand will remain stillborn.
