The rising Aussie dollar, though perceived by many as a sign the economy is improving, leaves many real estate agents bashing their heads against the wall.
A rising dollar means overseas investors are less likely to spend their money on Australian property.
Colliers International director of residential Murray Wood said the rising dollar had blunted interest in the residential market from foreign investors.
“If overseas buyers are converting their currency into Australian dollars now, then their budgets for buying a house will have certainly changed,” Mr Wood said.
Jellis Craig agent Robert Ding agrees that overseas investors are more reluctant to purchase properties with the Aussie dollar sitting so high.
“I think the Asian buyers are more cautious. They are slowing down at the moment and they have stopped being aggressive and silly with their money,” he said.
“When the Australian dollar was sitting at 65 cents, things were different. The Australian dollar does affect their decision but they will still buy because of the security of the land in Australia; they love the freehold land,”
As of COB yesterday, the Aussie dollar was buying just under 93 US cents.