Surge In The Number Of Foreigners Searching For Properties In Australia

Whilst it has been difficult to find positive news stories on the property front of late, an article that appeared on realestate.com.au shines a light on one pool of buyers that are tipped to help underpin prices in the face of rising interest rates and declining consumer confidence.

The article released last Friday, shows the emerging number of potential overseas buyers and renters who are now setting their sights on our property market, presumably with thoughts of moving to Australia in the not too distant future.

In a major coup for the Gold Coast, residents from New Zealand and Britain had the Gold Coast at the top of their search list whilst citizens of China, India and Hong Kong also have Gold Coast property as a strong possibility in their future planning.

Whilst the rental searches are well and truly outstripping potential buyer searches, the overall likely outcome is more residents relocating to our area. This can only be a positive for property prices. 

The full article and how this may influence our market moving forward is below.

Surge in the number of foreigners searching for properties in Australia

A new report shows a sharp uptick in search activity on Australia’s number one property website from those who are currently based internationally.

The latest Prop track Overseas Search Report hints at a looming influx of arrivals now that borders have reopened and Covid restrictions have eased.

Total searches on realestate.com.au from overseas users jumped sharply in June compared to May, with much of that being for rental properties.

“Searches for rental properties increased by an astounding 71% month-on-month, compared to only 7% on the buy section of the site,” said report author Karen Dellow, a senior audience analyst with REA Group.

“This indicates that longer-term visitors are eyeing a move to our shores, most likely migrant workers and students.”

The latest overseas arrivals and departures data released by the Australian Bureau of statistics shows 650,520 people crossed the international border into the country in May.

That represented a monthly increase of 76,590 trips.

A major rebound in the number of international students heading Down Under is evident, with 24,750 people arriving in the country for education purposes in May.

That’s up from just several hundred in the same month last year due to the significant impacts of Covid and border closures.

However, the ABS pointed out that the number of student arrivals in May was 27.8% lower than pre-Covid levels in May 2019.

Ms Dellow said the report showed rental searches in all countries have increased, except for the United States.

There was a staggering 431% increase in China-based searchers looking for a rental property, and a 196% increase in India-based searchers.

When it comes to buyers, those from China, India, and Hong Kong are showing the most interest, she said.

The sunny Gold Coast is proving appealing for property seekers looking for a home to buy, while suburbs in Brisbane, Melbourne, Sydney, and Perth are also popular.

Balwyn in Victoria was the most popular suburb for property seekers for China, while it was Melbourne’s CBD for those from India.

New Zealanders and Brits looking for a home were most interested in the Gold Coast, followed by Greater Brisbane.

And high-end luxury apartment complexes tend to be most favoured, with Queens Place in Melbourne taking the top spot with the most property views among foreign searchers.

The first lot of data from the 2021 Census was released recently, showing migrants from India and China make up the highest proportion of the overseas-born population, after those from England.

“The total number of people born overseas has increased by 25% in the past decade, whereas those born in Australia have only increased by half that, or 12%,” Ms Dellow said.

“And although the Australian-born population is much higher, it does show that our country continues to attract people from overseas, despite the COVID-19 pandemic slowing down migration over the past few years.”

Please see below the HTW Valuers Property Report July 2022. 

https://static.htw.com.au/HTW-month-in-review-July-2022.pdf

HTW Valuers property clocks for the Month of July are featured below for both Houses and Units. As you can see, 

HTW Valuers property clocks for the Month of July are featured below for both Houses and Units. As you can see, HTW Valuers have listed Gold Coast Units as currently at the peak of the current cycle whilst Houses are currently listed as being in decline.