NAB’s Q1 2021 survey of residential property professionals, released today, reveals that the share of Australian homes sold to foreign buyers has fallen to its lowest level since records began in 2010, at only 3.7% of new home sales and 2.2% of established home sales:
At the state level, Victoria bucked the trend across the new home market, with sales jumping to 3.5%. The other major capitals experienced falling new home sales to foreign buyers:
The opposite was true across the established market, with sales to foreigners slumping to only 1.8% in Victoria and 1.1% in Queensland, whereas New South Wales was broadly unchanged at 3.1% and Western Australia (3.3%) recording an increase:
This could be the bottom, however, with the net number of property professionals expecting the proportion of foreign buyers in the established market to increase outweighing those who expect it to fall (+2%):
Regardless, the booming foreign demand witnessed 5-6 years ago is a distant memory and is unlikely to be repeated anytime soon.
The closed international border and deteriorating relationship with China should continue to suppress foreign buyer demand.