Foreign cash fuelling Melbourne apartment ‘bubble’

Foreign cash fuelling Melbourne apartment ‘bubble’

by 0 comments

Commonwealth Bank has labelled Melbourne’s inner-city apartment market a “bubble” that is being partly inflated by cashed-up foreign buyers.

Speaking at the Bloomberg Summit, CBA chief financial officer David Craig said foreign investors are having a clear impact on certain housing markets.

“At the fringe in some aspects of the market, for example inner-city apartments in Melbourne, it is clear that there has been a fairly high percentage of foreign investors that are probably contributing a little bit to the bubble in that particular market,” he said.

“So it is a matter, from our point of view, of just being conscious of the type of investors and the impact they are having on different parts of the market.”

The latest NAB Residential Property Survey found that foreign buyers accounted for 15.7 per cent of new property demand in the third quarter – up from 12.8 per cent in the previous quarter.

In Victoria, foreign buyers accounted for 25.2 per cent of new property transactions.

By comparison, foreign buyers accounted for 17.7 per cent of new property transactions in Queensland, 13.6 per cent in NSW and 8.3 per cent in Western Australia.

[LinkedIn: What impact are foreign buyers having on your market?]

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?