Foreign property buyers hit the sell button

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:

Foreign purchases of Australian real estate

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.

Unconventional Economist
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Comments

    • Lols is it any wonder if the tweets are anything to go by?

      I always thought it was interesting that my mainland Chinese middle class professional students thought that everyone in the row loved them. We’d get onto a discussion about why almost no one in the world gave a [email protected] about what Australia did, but everyone had an opinion about the US. I told them that as time went on, China would be the same. That’s the problem with being such a large country, you impact the lives of everyone and therefore they have opinions. Plus once you get past a certain power and influence point from a geopolitical perspective then as a citizen of that country once you leave your borders you have to be aware of what is REALLY going on, not what your media tells you. Once international travel has been opened up globally again I wonder where Chinese tourists will be welcome and where Chinese feel safe buying property os. I would not be surprised if there is a movement of mainland Chinese back to the motherland (it may not be a net movement) but the Chinese value personal safety to an insane degree, and this is a major party propaganda point and has been for decades so if they start to feel unsafe I think many will either go or stay home. What their capital does is different. Interesting times.

  1. Properties just rotate to locals and if there isn’t enough of them the way the banks are giving out credit people will hold them as investments. As long as there is a genuine housing shortage (i.e. renter supply) its just a rotation of ownership.

  2. GarethMEMBER

    What is the cumulative total of foreign owned real estate? If they are buying 2-6% per annum and not selling, the could own half the country already.

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