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Foreign interest strong in Australia's residential property market

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Foreign investors have been expressing substantial interest in Australia's residential market and securing properties in droves, a new survey has revealed.

National Australia Bank (NAB) recently released the Q3 2014 edition of its quarterly Residential Property Survey, which assess house prices, affordability and a host of other measures across Australia's states and territories. One of the standout trends from the latest survey was that more and more property investors from abroad are looking Down Under.

What's more, NAB expects this overseas interest in Australian property to grow even further in future.

According to NAB, foreign buyers secured around one in six (16.8 per cent) new properties in this country in Q3. The bank expects this proportion to increase slightly by 17.3 per cent over the coming year.

While this trend was witnessed in all states, it was most pronounced in Victoria - where almost a quarter (24.8 per cent) of demand for new property came from overseas.

Interest has certainly been strong for new properties - but what about for existing developments? The NAB survey revealed that foreigners also increased their attention on the established property market last quarter, accounting for 8.2 per cent of total national demand. This was up from 7.2 per cent in Q2.

In fact, overseas demand for established property increased in all states except New South Wales, with Victoria once again leading the way - claiming 11.5 per cent of demand in this sector.

Alan Oster, chief economist at NAB, added that most foreigners are going for high-end developments such as apartments as they are "not buying cheap stuff," as quoted in an October 15 article in The Australian.

Whether you are a local or foreign investor looking to make a move in Australia's residential sector, having the right property valuation software in place can help you make well-informed decisions that bring results.

Date Published: 07 Dec 2014
Category: General News

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