Australians increasingly face competition from foreign buyers with cash in hand as they search for their dream homes. According to Real estate expert Nicole Qui, most buyers are from China, with many others coming from Singapore and Malaysia.
One of the biggest attractions for these international buyers is Australia's excellent education system, with its top-tier schools being a significant drawcard. Qui added that most international buyers are keen on something they can move into immediately without renovations or work.
However, the broader trend shows that foreign interest in the Australian property market is slowing down. AMP chief economist Shane Oliver notes that while there was a resurgence of foreign buyers after the pandemic, activity has cooled over the past year. The number of foreign residential real estate approvals dropped from 6,576 in 2023 to 5,581 in 2024. Factors driving this slowdown include China's efforts to prevent capital flight and a decline in student visa numbers, reducing the demand for properties by parents of international students.
Despite the decline, foreign buyers still invested a substantial $4.6 billion in Australian property. Victoria remains the top destination, with 2,240 foreign purchases last year, followed by Queensland (1,121), New South Wales (656), South Australia (459), and Western Australia (322). Melbourne continues to be the most searched city online by foreign buyers, and experts predict a potential rebound in overseas activity there.
That said, shifts are expected in where foreign buyers are investing. With declining student numbers and slower capital growth in Victoria, cities like Brisbane and Perth could see increased interest from international investors looking for better prospects.
