NAB’s latest survey of real estate professionals revealed that the share of Australian homes sold to foreign buyers hit the lowest level in records dating back to 2010, accounting for only 2.2% of established home sales in Q1 2021:
The share of new and established homes sold to foreign buyers has hit its lowest level on record.
New data released today by Statistics New Zealand reveals that foreign buyers have also lost interest in New Zealand, with just 714 homes purchased by foreign nationals in the year to March 2021, less than half the 1473 homes sold by foreign nationals over the same period:
[Only] 192 NZ dwellings were purchased by foreign buyers in the first three months of 2021… That is well down from more than 1000 per quarter being bought by foreign buyers…
More than twice as many homes are being sold by foreign owners than are being purchased by foreign buyers, a reversal of the situation three years ago before the restrictions were introduced…
Clearly, the booming foreign demand witnessed across both nations 5-6 years ago is a distant memory and unlikely to be repeated anytime soon.
The closed international borders and deteriorating relationship with China (admittedly less so in New Zealand) should continue to suppress foreign buyer demand.
