Overseas Interest Softens

Overseas buyer interest softened in the second half of 2023 according to the latest figures from the Foreign Investment Review Board.

Approved housing purchases by overseas buyers dropped to 2954 between July and December 2023, compared to 3196 in the same period the previous year.

The data shows that purchases by buyers based in China, Hong Kong, Vietnam, Singapore, Indonesia, South Africa and the UK are now less than half the previous year’s totals.

SQM Research managing director Louis Christopher says the softening could be in part a result of cuts to migration numbers.

“Over and above that, we’ve got a number of states now, particularly Victoria, where taxation has increased on property investors. My expectation is that we’ll see a softening in the numbers once the full FY2024 results come out,” he says.

Other government data shows foreign buyers spent $4.9 billion on Australian property in FY2023 across 5360 transactions.

Victoria was most popular with overseas buyers in FY2023 accounting for 1461 new homes, 458 established homes and 321 vacant land sales.

Queensland was second, with 436 new homes, 403 established homes and 282 vacant land sales.

In New South Wales there were 396 new homes, 165 established homes and 95 vacant land sales.