Foreign buyers favour existing homes

Aerial view of new luxury australian neighborhood

(Australian Associated Press)

Tougher restrictions on foreign buyers don’t appear to have curbed their appetite for Aussie homes.

Almost one in 10 properties were bought by foreign buyers, NAB’s quarterly residential property survey has found.

The survey results shows foreigners were more active in the existing homes market despite tougher restrictions, including a ban on non-resident foreign investors from buying an existing home and a requirement for those on temporary visas to sell their home once their visa expires.

“More foreign buyers were attracted to established apartment markets in all states, led by Victoria (17.5 per cent) and NSW (12.6 per cent),” NAB’s report says.

“Foreign buyers also had a much bigger presence in the established housing market in Victoria, with a 16.1 per cent share of total demand in this market in the second quarter.”

The percentage of foreign buyers in the new property market dropped to 12.8 per cent from 15.6 per cent in the first quarter.

Foreign buyers accounted for 11.4 per cent of all established apartment sales and 9.4 per cent of house sales in the second quarter.

First home buyers, whether it be as an investor or owner occupier, were more active in the new property markets.

NAB’s residential property index fell slightly in the second quarter, largely due to a decline in rents.

The quarterly survey of real estate agents, property developers, asset and fund managers, home owners and investors began in 2011.


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