Overseas Interest in Australian Properties Up As Indians Lead the Charge

Houses are seen in Albany, Western Australia, on May 22, 2024. Susan Mortimer/The Epoch Times

There has been a slight uptick in overseas searches for Australian properties compared to last year, according to the latest PropTrack report.

The report says searches from India were up by 23 percent in October, reflecting a growing interest in both buying and renting homes in Australia.

Notably, property seekers from the United Kingdom also showed increased interest, while Hong Kong’s rental searches rose by 4 percent.

However, searches from New Zealand saw a decline during October, which is typical for this time of year but may increase again in December.

U.S. searchers, influenced by political shifts, experienced a spike during the summer—with most searches from New Jersey and California—but dropped by 25 percent between September and October.

The most popular Australian cities were Melbourne at number one followed by Gold Coast, Brisbane, Sydney, Perth and surrounds, Sunshine Coast, and Adelaide.

Foreign Buyers Opting for Higher-Priced Properties

What stands out from the latest search trends is that overseas property seekers are looking at higher-priced properties compared to local Australians.

The typical budget for Australian homebuyers searching on realestate.com.au is around $600,000. This is becoming an issue, as the number of properties available at this price point, especially in major capital cities, continues to shrink.

In contrast, the most common price range for all foreign buyers is $1 million, with sought-after inner-city suburbs such as Brighton, South Yarra, and Camberwell in Melbourne.

Interestingly, property seekers from India are also more budget-conscious, often focusing on homes priced below $600,000 and opting for developing suburbs in Melbourne’s west, like Tarneit and Point Cook, which are more affordable.

Foreign Buyers Still a Small Percentage of Market

As per the Australian Taxation Office (ATO) data released in June this year foreign buyers are continuing to invest heavily in Australia’s real estate market.

In the 2022–23 financial year, 5,360 foreign buyers made purchases worth $4.9 billion, a significant rise from the 4,228 purchases worth $3.9 billion the previous year.

Despite these increases, foreign buyers still account for only around 1 percent of all property purchases in Australia, which collectively total more than $407 billion annually.

Most of these transactions (78.2 percent) involve properties under $1 million, reflecting the broader trend of foreign buyers opting for more affordable homes, often in suburban or developing areas.

China continues to be the top foreign buyer, followed by Hong Kong, India, Vietnam, and Taiwan.

Political Debate Over Foreign Investment in Housing

Despite the relatively low number of foreign buyers overall, their interest continues to spark political debate.

Opposition Leader Peter Dutton has voiced concerns over foreign investment, particularly its impact on first-time Australian buyers.

Dutton has proposed a two-year ban on non-citizens purchasing existing residential properties in Australia, arguing that the policy would help young Australians gain a fair shot at owning their first home.

“Imagine this: You work hard, stay in while everyone’s going out so that you can save a bit more and you finally have enough to buy your first home, only to be outbid by someone who doesn’t even live in this country,” Dutton said in a social media post.

“If I’m the next prime minister, I will work to ban foreign investors and temporary residents from buying existing homes for two years.”