Overseas interest in local market at five-year high, research finds

The question of how much foreign buyers influence the Australian property market can be controversial with claims their participation bolsters prices and worsens housing affordability for ordinary Australians.

New research by PropTrack, part of the portal realestate.com.au, has recorded a 20% increase in searches from overseas buyers compared to the five-year average.

This surge is not limited to buyers. PropTrack also registered a 32% increase in rental searches from abroad. Sydney is the most sought-after city for overseas renters.

Foreign buyers represent 10.1% of the total interest in new homes being built – another five-year high – on the realestate.com.au portal.

For established homes, foreign buyer activity reached its highest level in four years, hitting 4.1% of the market in the third quarter of 2023, with most activity concentrated in Victoria.

The most active participants in the Australian property market are from the United Kingdom, New Zealand, and China. UK-based individuals are leading the charge with an 8.1% increase in rental searches and a 6.9% increase in buying searches.

As an experienced real estate agency in your area, we believe this data continues to demonstrate the continued strength of the local property market.

Here are the key findings of the PropTrack report:

• Sydney leads in rental searches: Sydney has surpassed other Australian cities as the most sought-after location for overseas renters.
• Gold Coast attracts buyers: Queensland's Gold Coast remains the top choice for overseas buyers looking to purchase property.
• Overall decline in interest: There has been a slight decrease in overseas interest in moving to Australia since the beginning of the year.
• Rental searches remain high: The number of searches for rental properties from overseas is still significantly higher than the five-year average.
• Victoria remains popular: Victoria is the second most popular state for overseas buyers and renters after NSW.
• Top countries for searches: The UK, New Zealand, and China are the top three countries showing interest in buying or renting property in Australia.
• Decline in international student arrivals: The decline in international student visas granted has likely contributed to the decrease in overseas rental searches.
• Perth's rising appeal: Perth, Western Australia, is experiencing a notable increase in interest from overseas buyers and renters. With its affordable housing options and strong economic prospects, Perth has become an attractive destination for foreign investors. The city's lifestyle, coupled with significant infrastructure developments, is drawing attention from buyers looking for long-term investment opportunities.

It is evident that the Australian property market remains highly appealing to international buyers and renters, reflecting the country's overall desirability and the diverse opportunities it offers for investment and living.

Paulette Contessi 

Director/Licensee

CONTESSI PROPERTIES