Australia has seen a surge in foreign investors snapping up homes across the country – and one expert has lifted the lid on why buyers from China want to live Down Under.
Cashed-up foreign investors spent almost $5billion on Australian property in just 12 months, according to a recent report by the Australian Taxation Office.
The register of foreign ownership of residential land report analysed data of foreign investors from all countries in the 12 months between July 1, 2022 and June 30, 2023.
The report found foreign investors bought 5,360 residential properties – an increase of 27 per cent from the previous year – totalling a whopping $4.9billion in value.
Sales by foreign investors lagged behind with just 1,119 properties at a total value of $1billion.
Daniel Ho, co-founder and group managing director of Chinese-based international property sales website Juwai IQI, told Daily Mail Australia on Tuesday that Australia was the most popular destination among buyers.
‘Most Chinese and Hong Kong buyers today are buying for their own use, as they study, work, vacation or retire in Australia,’ Mr Ho said.
‘Buyers from mainland China and Hong Kong are among the most active cross-border buyers all over the world… Australia is one of their most popular destinations.’
New data revealed foreign investors bought 5,360 residential properties totalling a whopping $4.9billion in value (stock image, property sold in Sydney)
Mr Ho said investors wanted homes ‘convenient for their lives’, with Sydney being the top city targeted by Chinese buyers, followed by Melbourne, Perth and Brisbane.
Daniel Ho, co-founder and group managing director of Chinese-based international property sales website Juwai IQI, said Australia was the most popular destination among buyers from Hong Kong and mainland China
Sydney’s north shore suburbs including Turramurra, St. Ives, Vaucluse and Mosman were popular among buyers because they offer good schools, a leafy environment and a relaxed lifestyle.
He added Chatswood was also a desirable destination with Hong Kong buyers as it offered proximity to desirable schools, the CBD, and Chinese shops and restaurants.
In Melbourne, buyers from mainland China and Hong Kong were interested in Pont Cook, Doncaster, Southbank and Toorak.
Mr Ho said foreign investors have a wide-ranging budget, with the majority spending more than the average price for a home.
He explained one of his clients was a young man who worked and saved hard to buy a one-bedroom apartment in Canberra.
The client, who works and studies at a university in Sydney, plans to live in Australia and bought the apartment as an investment until he finishes his degree.
However, Mr Ho said many families he works with are spending ‘tens of millions’ on properties considered the most expensive in Australia.
Mr Ho said Sydney’s north shore suburbs were popular among buyers as they offered good schools, a leafy environment, a relaxed lifestyle and proximity to the city
Mr Ho said the increase in foreign buyers seen in the ATO report showed overseas investors were bouncing back from the Covid-19 pandemic.
He added in the coming years a significant number of people from mainland China and Hong Kong would be moving to Australia.
‘There is a significant wave of post-Covid migration as people act on plans they had to put on hold during the pandemic,’ Mr Ho said.
‘Economic trends, political relations, and government regulations and fees may push the numbers up or down, but the basic truth is that Australia is an attractive country, and many people would like to live here.’
Mr Ho explained the ATO report encompassed buyers from all over the world including parts of Asia, North America, South Africa, the UK and Europe.
Foreign buyers from all sources preferred Melbourne as the top destination, with offshore buyers investing in Queensland over NSW.
‘This is the second consecutive year that more foreign buyers purchased in Queensland than in New South Wales,’ Mr Ho said.
However, Victoria and New South Wales attracted more millionaire buyers than the sunshine state.
The Australian Taxation Office’s register of foreign ownership of residential land report found Victoria was the most popular state for all overseas buyers, followed by Queensland and then NSW (pictured)
‘Foreign buyers purchased 284 homes in New South Wales during the year that were worth at least $1 million, compared to only 200 in Queensland,’ Mr Ho said.
‘Victoria got by far the most millionaire buyers, with 569 foreign buyer transactions worth over $1 million each.’
The register of foreign ownership of residential land report found prime locations for foreign buyers included Melbourne, Brisbane, the Gold Coast and Sydney.
Victoria, New South Wales and Queensland represented 74.9 per cent of all the homes bought by overseas investors.
The average price of a home was $914,000, with the report finding luxury properties worth more than $1million accounted for 78 per cent of purchased homes.
The report didn’t provide a breakdown of the percentage of nationalities purchasing property in Australia.