They may look for a gradual return of those wanting to make Australia home, initially targeting highly skilled workers to make a home here to keep unemployment rates low, she said.
Independent economist Saul Eslake said while Australia’s borders and quarantine rules had softened, those in countries such as China were still in place, including longer-term quarantining, which could be affecting the number of people looking to buy.
“I’m guessing people would be hesitant to look at property if they had to quarantine for three weeks when they returned,” Mr Eslake said.
Strained political relations with China, Foreign Investment Review Board rule changes and extra taxes from state governments could also be impacting the number of overseas home buyers this year.
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CommSec senior economist Ryan Felsman said while overall views had fallen, Australia could see foreign buyer interest grow from “regions of uncertainty”, including Europe.
“The Ukraine war will unnerve a few people, those people in Eastern Europe will prefer to be in a safer part of the world,” Mr Felsman said. “That could be a factor and certainly in Asia as well there are tensions with China and Taiwan.”
The biggest factor influencing foreign buyers’ next move would not be Australia’s federal election but future interest rate rises, which may happen later this year.
Kay & Burton South Yarra partner and head of international division Jamie Mi said the election was having an impact, though not on foreign buyers or expatriates who were also looking to return.
Local vendors were hesitant to list their larger family homes, waiting until after the election to put their homes on the market.
“There’s very little choices for what they’re [foreign buyers] looking for in particular,” Ms Mi said.
The upcoming federal election in May is stopping some vendors from listing, Ms Mi said.Credit:Helen Nezdropa
Some buyers were rushing in to snap up homes in Melbourne’s east without seeing them in person first, but others had been planning their move for some time, taking up to three years before making a move.
“They’re definitely looking at pricing, like your local buyer, and some are shocked by how much house values have grown,” Ms Mi said.
Marshall White Boroondara director and auctioneer William Chen, who also heads up the team looking after international buyers, said activity was growing.
This week he sold a property in Bulleen for about $3 million to an overseas purchaser who was buying in Australia for the first time.
Foreign buyers are seeking homes close to sought after school belts, new data shows.Credit:Andrew De La Rue
“They are looking for family homes, or newer homes, where they don’t have to do the renovation,” Mr Chen said. “Schools are always a big thing to attract buyers, so they look to buy in the school belts in Kew and Balwyn which have very good public and private schools.”
Both agents were expecting the number of foreign buyers coming into the Melbourne market, which saw house prices rise by 18.6 per cent in 2021, to grow later in the year.
Dr Powell said their return would not have a major impact on house prices but would hit the local rental market, which was already seeing vacancy rates tighten dramatically.
“It will be harder felt on the rental market, most new migrants and international students rent on their arrival and the longer they stay, the more likely they are to buy,” Dr Powell said.
The Melbourne suburbs foreign buyers searched most during the pandemic
Source: Philippines Alive
