Amongst all the talk of the impact of lockdowns on buyer activity and the record-breaking levels of competition for the limited number of properties available for sale, we came across some interesting figures which shed additional light on how positively the Australian property market is being viewed by overseas buyers.
The latest annual report from the Foreign Investment Review Board has indicated that investment in the Australian property market increased by a remarkable 15.5 per cent in the year to June 2020, despite the impact of the pandemic.
The total of foreign residential real estate investment in 2019-2020 was $17.1 billion, its highest level in three years.
What was really interesting is that these overseas buyers didn’t necessarily come from the places you might have assumed. For example, the leading source of demand for Australian property was the United States, with $13 billion worth of investment. Singapore came in second with $9.5 billion whilst mainland China was responsible for $7.1 billion. Keep in mind, though, that when you factor in the investors from Hong Kong, the combined total is only marginally under Singapore.
Interest in Australian real estate was also up in Europe, with Germany accounting for just under $3.7 billion in investment whilst France recorded $2.4 billion.
Increased interest in Australian property from overseas buyers is yet another contributing factor to the high levels of competition that all buyers are experiencing right now. So, if you are in the market for a property in Victoria, whether as an investment or your own home, don’t overlook the value of having an experienced and objective expert by your side…particularly when it comes to gaining access to off-market properties that the general public never get to hear about.
To find out how this can work for you, why not give one of the team at Ian Reid Buyer and Vendor Advocates a call on 9430 0000. And if you’re considering selling as well, don’t forget to download your free copy of our booklet, “Fatal Real Estate Traps Exposed”, while you’re here.