Foreign buyers shun Australian property

According to NAB, foreign buyers continue to shun Australian property, with demand still well below decade lows in the June quarter:

While the prominent role played by foreigners in Australian housing markets has dissipated in recent years, market share in this buyer group in Q2 increased in both new and established housing markets. In new property markets, their overall market share increased to a 2-year high 8.3% (6.6% in Q1) and to 3.1% in established housing markets (from a survey low 2.4% in Q1). But buying activity is still below survey average levels in both markets.

In new property markets, the share of sales to foreign buyers jumped noticeably in VIC to an above average 19.3% (12.4%) and has continued the rising trend seen in the past 3 surveys. Market share of foreign buyers in new property markets fell in all other states. It fell to 2.5% in NSW (4.6% in Q1; average 9.1%), 6.4% in QLD (9.7% in Q1; average 12.0%) and 1.7% in WA (4.0% in Q1; average 6.3%).

In established housing markets, foreign buyers accounted for a larger share of sales in VIC (4.8% vs. 2.3% in Q1), NSW (3.4% vs. 2.8% in Q1) and QLD (2.3% vs. 1.6% in Q1), but a smaller share in WA (2.2% vs. 3.8% in Q1). The share of foreign buyers however remains below survey average levels in all states.

With borders likely to remain closed until next year, and Australia and China locked in a cold war, it’s hard to see foreign demand rebounding to former levels anytime soon.

Leith van Onselen

Comments

    • If the foreign investors become sellers, that would be interesting. The property shortage is already quickly disappearing, and if your asset is dropping why keep it?

  1. OfficeboyMEMBER

    I tell ya .. get the small sales & marketing offices & pop ups going in India and wherever else and sell the greatest seaboard living in the world , a free educated and educating nation , rule of law , high principled , peace loving , football loving , barby cookin son of a bitch of a nation .. and raise the price of entry a bit. Take a few short term losses and money print and committ & persist pushing the bastard economy up in a not too distant J recovery .. hows that ?

    • And build a new international airport at Point Cook with dirext flights from India for easy access. Can’t have the hobbling and diabetic subcontinentals travelling too far.

  2. ScientistMEMBER

    Leith, the government announced today ~10,000 extended visas (and essentially citizen thereafter) for HK students already in Australia. Do you think there would be any impact on property prices from this?

    • I think most of those people could already buy property in Aus and were already in the pipeline for PR as students, then skilled migrant visa’s. It might push a few forward but why buy in a falling market, its not a requirement for PR.

  3. The Penske FileMEMBER

    That’s disappointing news. I thought receiving all the repeat emails from Eton property with all the new off market opportunities including the smug Gurners new joint on Albert Park Lake was just because I’m a nice guy….

  4. PaperRooDogMEMBER

    What is the reason Vic has gone against the trend so much? Is it settlement of off the plan on some big development? A foreign corp “investing”? Seems strange there is such a marked difference.

  5. TailorTrashMEMBER

    Alternative headline

    Australian children get a small respite from
    having their homes and country sold from under them

    Getitintya straya …….

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