Foreign buyers lift demand for Aussie property

The latest NAB Residential Property Survey of industry professionals shows that foreign demand for new Australian homes jumped in the September quarter of 2021, however demand for existing homes remained near record lows:

Specifically, property professionals estimate that that the share of total sales to foreign buyers lifted to 4.4% for new properties (their highest share since Q3 2020 and up from a survey low of 2.3% in the prior quarter), and to 2.2% for established homes (up from a survey low 2.0% the previous quarter):

Both series, however, remains well below the highs experienced mid last decade.

Across the major markets, foreign demand for new housing is highest in Victoria (5.6%) and Queensland (5.0%), followed by NSW (3.9%) and WA (1.5%):

Victoria (2.8%) also leads foreign buyer demand for established dwellings, followed by WA (2.6%), NSW (2.3%) and Queensland (2.2%):

I expect foreign buyer demand to pick-up once Australia’s international border is reopened and immigration is rebooted.

Australia also has the weakest anti-money laundering laws in the developed world, making it a magnet for offshore dirty money.

Unconventional Economist
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Comments

  1. And then there’s the foreign buyers using a local “rat hole” to appear as a local (Wolf of Wall Street lingo)

  2. Arthur Schopenhauer

    So those of us in Melbourne locked down for 18 months to be completely fk’d over by this country’s elite.

    FK them all straight to FK’n he’ll!

  3. Rush to get money out of China before the system collapses. Plus nobody will be wanting to buy Chinese property, and smart people will be cashing up their Chinese property while they still can, so all that money is now being diverted to international markets.

    • I honestly think the latest run up in $BTC is to hide money outside of banks because if there is a liquidity crunch then you want to be outside the regular financial system as a hedge against bail in’s, bank runs, currency devaluation etc.. which I suspect could be coming if China’s economy implodes via Evergrande.

      • boomengineeringMEMBER

        not so much via Evergrande ( first domino) but certainly because of it. The waiting for bargains in the Ever, et al collapse is stopping the masses buying which is accelerating the price falls.

    • Anecdotal only.
      Large several day on line auctions several weeks ago.
      Friend of friend type situation who happened to be a developer bidding in the approx 3 million range, Qland.
      Lots of South Korean bidders, property marketed at around 3 went north of 5 million.

    • Frank DrebinMEMBER

      Chairman Xi’s purge is seeing private wealth flow out of Hong Kong on a massive scale.