Foreign buyer interest up in Australia

According to NAB’s Q2 2020 Residential Property Survey, the quarter saw higher activity from foreign buyers in comparison with Q1. 

In Victoria, this saw foreign buyers account for 19.3 per cent of new home market share – its highest level in three years.

“The latest NAB Australian Residential Property Survey shows that in Q2, higher activity from foreign buyers supported the market,” said Juwai IQI executive chairman Georg Chmiel, commenting on the results.

“In Victoria, the share of new property sales to foreign buyers jumped to 19.3 per cent. That means that one in five of new homes sold in the state was purchased by a foreign buyer. The average foreign buyer share of new property purchases in New South Wales is 9.1 per cent. The average foreign buyer share of new property purchases in Queensland is 6.4 per cent. The average foreign buyer share of new property purchases in Western Australia is 6.3 per cent.”

Mr Chmiel said Chinese buyers made 40.1 per cent more inquiries on Australian real estate in the second quarter than in the first. This, he said, was still 14.9 per cent below the levels of a year earlier, “which happened to be exceptionally high”.

“Chinese demand for Australian real estate was surprisingly strong in the second quarter, especially if you consider the context of a global pandemic, travel bans and lockdowns,” the expert added. 

“During the first half, Chinese buying in Australia was down 14 per cent, according to Juwai IQI enquiry data, but local buyer activity plummeted by some 40 per cent. In that respect, foreign buyers helped support the market at a time when the outlook was otherwise bleak.”

[Related: NSW temporarily extends stamp duty relief for FHBs]