Foreign buyers ‘big players’ in Q1 housing market: NAB

The NAB Residential Property Survey Q1 2023 found that the overall share of foreign buyers in new housing markets was 7.9 per cent in the first quarter of 2023, compared to 5.2 per cent in Q4 2022. Although the overall share of foreign buyers rose, this was still below the average of 9 per cent.

The survey revealed trends in new housing markets “diverged widely” across the states. In NSW, the market share rose to 16.2 per cent, up steeply from the 6.7 per cent recorded in the fourth quarter of 2022. According to the survey, this was the highest level in eight years, doubling the survey average of 8.3 per cent.

Furthermore, foreign buyers were very active in Western Australia, with market share in the state jumping up to an above average 7.9 per cent, up from 5.4 per cent in the fourth quarter of 2022.

For Queensland, market share rose to 7.5 per cent (up from 3.3 per cent in Q4 2022), however it trended lower than the average of 10.6 per cent.

On the other hand, market share in Victoria fell to a “two-year low” of 4 per cent, down from 6.1 per cent during Q4 2022, and was well below the average level of 12.2 per cent.

In addition, the market share of foreign buyers rose to 3.8 per cent in the established housing markets, up from 2.8 per cent on the previous quarter.

According to the survey, market share lifted in all states but were still below the averages.

Queensland led the rises at 4.6 per cent (up from 2.6 per cent in Q422), followed by Victoria which was up 4.2 per cent (up from 3.6 per cent).

The lowest rises were observed in Western Australia and NSW which recorded rises of 2.9 per cent (up from 1.8 per cent) and 3.7 per cent (up from 3.3 per cent in Q422), respectively.

China spends big on Australian residential property

In the three months to 30 September 2022, Chinese residents acquired $1 billion of residential property in Australia, with a further $600 being spent over the following three months.

After China, the next largest investors were Vietnam, Singapore, and the UK, each of which invested $100 million in residential real estate.

“At this rate, China will invest an estimated $3.2 billion in Australian residential real estate this year, which would be up from $2.4 billion in 2021–22. With the inclusion of Hong Kong, China would invest $3.8 billion, which would be up from $3 billion last year,” said Juwai IQI co-founder and group managing director, Daniel Ho.

[RELATED: Chinese snap up $1.6bn of residential property in 6 months]