Global real estate group Juwai IQI’s managing director, Daniel Ho, agreed those buying properties in Australia were now more likely to stay long-term, especially as FIRB sales figures showed only 1957 properties, valued at $1.5 billion, were sold by foreign investors in 2019-2020, down 19.5 per cent on the year before.
Foreign investors are buying more than they sell, figures show.Credit:iStock
The figures show foreign transactors were four times more likely to buy property in Australia than sell, Mr Ho said.
“These are not speculative buyers who flip the homes. In many cases they are buying property to pass on to the next generation.”
Mr Ho said while foreign buyer numbers were also down, he expected the market would see an uptick by the end of the year.
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“In the second half of 2022 we expect stabilisation and even a modest uptick in foreign buying,” he said.
“Foreign students are returning, international travel is restarting and inbound immigration is rebooting. Foreign buying will have multiple drivers pushing transactions up by the end of this year.”
Ray White Double Bay China Desk sales executive Janette Chan said while overseas buyers were not rushing back, she also expected the market to pick up again once the number of positive cases from the Omicron strain of COVID-19 had fallen.
Ms Chan expected the market would start to return to normal as students, currently undertaking some classes online, returned to Australia to study.
“We have seen signs that people are making plans for migrating or are already returning to Australia,” she said.
Sydney Sotheby’s International Realty director, Michael Pallier, said foreign buyers were not as keen as expatriate buyers, who were coming back in large numbers to buy property in Sydney.
Expatriate buyers are looking for a larger home in Australia, rather than an apartment in New York, Mr Pallier says.Credit:iStock
“I have had a massive number of expats. They have really replaced new migrants since COVID-19,” he said. “It’s been a bigger market than ever, including this year.”
Some were planning ahead, buying property that they would move into in a few years’ time.
Like Australian home buyers, overseas-based buyers were looking for larger homes and a better lifestyle after being in coronavirus-related lockdowns in apartments in large cities like Singapore, New York or London, Mr Pallier said.
Property sales to foreigners down as new type of buyer emerges
Source: Philippines Alive
