It’s official: foreign buyers have abandoned Aussie property

The Foreign Investment Review Board (FIRB) has released a detailed report, entitled Insights into foreign purchases and sales of residential real estate 2019-20, which shows that the number and value of purchases of residential property by foreign buyers has fallen sharply, whereas sales by foreign owners have risen:

Three year comparison of purchase transactions

Purchase transactions have declined over the three years from 2017 to 2018 to 2019 to 2020. There was a 19.5 per cent reduction in the number of purchase transactions in 2019–20 when compared to 2018–19. The value of transactions also reduced by 19.8 per cent in 2019–20 when compared to 2018–19…

The ACT, SA and Tasmania show an increase in purchase counts in 2019 to 2020 when compared to 2018 to 2019. The remaining states show an overall reduction…

The percentage of purchase transactions for residential real estate with values under $1m has been stable over the 3 years 2017 to 2018 to 2019 to 2020, remaining around the 80% mark…

Comparing the percentage change in 2019 to 2020 purchase transactions by property type to 2018 to 2019, new dwellings had the greatest reduction of 20.8 per cent. Vacant land reduced by 17.7 per cent and established dwellings reduced by 15.2 per cent. The majority of foreign purchases on the Register were new dwellings and vacant land…

The above data can be further broken down to the State and Territory level. Purchase transaction trends by state or territory in the three years 2017 to 2018, 2018 to 2019 and 2019 to 2020 show New South Wales and Victoria had greatest number in each property type…

Three year comparison of sales transactions

Sale transactions have increased in 2019 to 2020 when compared to both 2018 and 2019 financial years. There was a 66.4 per cent increase in sale transactions in 2019 to 2020 when compared to 2018 to 2019. The value of sale transactions also increased by 49.0 per cent over the same period…

There was an increase in sale counts when compared to 2018 to 2019 in all states and the Australian Capital Territory…

The percentage of sale transactions for residential real estate with values under $1m has increased from 80.5% in 2017 to 2018 to 85.3% in 2019 to 2020…

Comparing percentage change in 2019 to 2020 sale transactions by property type to 2018 to 2019, new dwellings had the greatest increase of 91.1 per cent. Vacant land increased by 40.4 per cent and established dwellings increased by 42.8 per cent. The majority of sale transactions involved properties registered as new or established dwellings…

The above data can be further broken down to the State and Territory level as seen below. Sale transaction trends by state or territory in the three years 2017 to 2018, 2018 to 2019 and 2019 to 2020 show New South Wales and Victoria had greatest number in each property type…

Now that the international border is open, and mass immigration is being rebooted, I would expect the volume of foreign property purchases to rise in 2022.

Unconventional Economist

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