Surge in Foreign Investment in Australian Real Estate, New Data Shows
- Posted By Ndl 1 Realty
New data shows that the Australian property market is experiencing a significant increase in foreign investment as migration booms post-Covid, with Melbourne emerging as a top-rated destination among buyers and renters.
A report by PropTrack data analyst Karen Dellow shows that the number of rental searches conducted by foreign buyers has risen dramatically, with a 65% increase in 2022 compared to the previous year and 20% higher than pre-pandemic levels.
Ms. Dellow added that the sharp increase in foreign buyers and renters also reflects the resumption of migration from workers and students when borders reopened after two years of closure.
The report highlights that the number of visas issued for all types of entry into Australia was 10 times higher in 2022 than in the preceding 12 months.
According to the report, specific work and student visas were eight times higher, even with December data unavailable.
As more foreign buyers and renters flock to the Australian property market, certain cities are emerging as more popular destinations than others.
Melbourne was the most popular city for buying and renting in 2022, followed closely by the Gold Coast for buying searches and Sydney for rental searches.
According to the report, Melbourne was the top destination for foreign buyers and renters from India, the UK, China, Hong Kong, and Singapore. In comparison, Sydney was popular among those searching from the US.
The restrictions on foreign buyers that only allow them to purchase brand-new dwellings or vacant land on which development is planned is leading to an increase in interest in such projects.
Ms Dellow predicts that immigration numbers will continue to rise in 2023 as more students and skilled workers return to Australia. She cites Australia's low unemployment rate and shortage of skilled labour as factors that will continue to attract migrants from overseas, particularly from China and India.
Ms Dellow also notes that although foreign buyers and renters are increasing, the proportion of overseas property seekers is low compared to those already living in Australia, so the additional burden on the market is likely to be small.