Foreign Buyers Drive Surge in Australian Residential Real Estate Purchases

The Australian real estate market has seen a significant increase in foreign buyers over the past financial year, with 5,360 residential properties purchased for a total of $4.9 billion. This data, released by the ATO, highlights the continued interest from overseas investors in Australia’s property market.

According to the register of foreign ownership of residential land, the average price of these properties was $914,000. The majority of transactions were for properties valued under $1 million, accounting for 78.2% of purchases. However, luxury properties worth over $1 million made up a significant portion of transactions as well, making up 78% of the total.

The top states for foreign buyers were Victoria, Queensland, New South Wales, and South Australia, with Melbourne, Brisbane, Gold Coast, Sydney, and Adelaide being popular locations for investment. Interestingly, while Queensland attracted more buyers overall, New South Wales saw more purchases of properties valued at over $1 million.

Juwai IQI co-founder and group managing director Daniel Ho noted that the 27% increase in foreign buying activity indicates a rebound after the slowdown during the pandemic. He also highlighted the growth in buyers in Queensland and Victoria, with Victoria seeing a 32% increase in foreign buyers.

It’s important to note that foreign buyers who do not have Australian permanent residency or citizenship at the time of purchase are subject to additional fees, including stamp duty and foreign buyer application fees. Despite these costs, the appeal of investing in Australia’s real estate market remains strong for overseas investors.

Overall, the increase in foreign buyers signals confidence in Australia’s property market and the attractiveness of Australian real estate to international investors. With continued interest from overseas buyers, the real estate sector is likely to remain a key driver of economic activity in the years to come.