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While local buyers are taking a wait-and-see approach amid the uncertainty in the market, a new report showed international buyers and renters are inspecting Australian properties in record numbers.
Little Hinges’ analysis of over 300,000 virtual inspections conducted in April revealed that international buyers and renters are increasingly exploring the Land Down Under’s property market, with 6.8 per cent of buyers and 8.9 per cent of renters inspecting properties digitally from overseas.
The figures equate to over 21,000 prospective immigrants inspecting property in Australia in April alone.
Mike York, the chief marketing officer for the proptech firm, noted the increase in the percentage of digital property inspections by international buyers and renters can be attributed to the growing accessibility of international travel and migration.
The first full-year budget of the Albanese government delivered by Federal Treasurer Jim Chalmers on 9 May is forecasting a temporary migration boom reflecting a “one-off” catch up after the COVID-19 pandemic.
More than 700,000 people are expected to move to Australia by the end of 2024, adding to the squeeze on the nation’s already tight supply in the housing market.
At the start of February, a snap decision by the Chinese government also placed Australia’s desperate need for student accommodation under the spotlight.
During that time, Minister for Education Jason Clare said 35,000 Chinese students returned to Australia in the first month of the year, while information from The Guardian revealed that “42,000 Chinese nationals with student visas remain offshore … including 5,500 applicants processed in the past month and 2,400 in the past fortnight”.
Notably, the trend of strong demand for Australian properties from overseas is not showing any signs of slowing down, with Mr York noting that the percentage of international buyers is the highest it’s been in the last 12 months.
“[Cities] like the Sunshine Coast and Sydney [are now] seeing up to 10 per cent of inspections coming from overseas, including the US, UK and New Zealand,” he added.
Despite a drop in numbers across many major cities in Australia in March, the percentage of local home buyers and renters continuing to inspect properties outside of their current city remained steady during the month.
Data showed 22.7 per cent of buyers and 17.6 per cent of renters from across the country are exploring properties outside of their state lines in April.
Queensland cities continue to attract the highest percentage of interstate and international property buyers. In April, Brisbane experienced a 3 per cent increase in buyer inspections from interstate, now standing at 21 per cent.
The Gold Coast saw a modest increase of 0.7 per cent to 37.8 per cent, while the Sunshine Coast remained steady at 30.5 per cent. Melbourne also had a sizeable proportion of interstate interest, with 18.4 per cent of buyer inspections coming from outside the state, and almost 7 per cent from overseas.
Renters continue to flock to Queensland, even though there was a decrease in interstate rental inspections on the Gold Coast.
Approximately 30 per cent of rental inspections on the Sunshine Coast are from interstate, while Brisbane and the Gold Coast both have 18 per cent of inspections coming from outside the state.
With the Reserve Bank doling out an unexpected 25-basis-point rate hike in May, Mr York forecasts buyers and renters will remain cautious and will be less willing to venture out of their comfort zones.
“[We] will likely see the percentage of interstate inspections, which is sitting at around one in four, remain at these levels, as buyers and renters stick to the suburbs they know,” he concluded.
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