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.