Foreign appetite for Aussie homes, from all corners of the globe, has surged in the past financial year, with the value of proposed investment rocketing by more than 75 per cent.
The Foreign Investment Review Board annual report shows China remains by far the biggest foreign buyer of property, splashing $24.3 billion in 2014-15 – more than triple the United States and six times the outlay from Singapore.
Overall, real estate investment approvals by FIRB are up 75 per cent.
Overall, real estate investment approvals by FIRB are up 75 per cent. Photo: Erin Jonasson
In 2013-14 China’s intended investment was $12.4 billion, according to FIRB’s past annual report.
That financial year, China surpassed the US for the first time as Australia’s number one foreign investor, and the dominance continues.
About half of all investment rubber-stamped by FIRB in 2014-15 was for real estate, equalling $97 billion.
The second-biggest proposed spender on Aussie property was US-based investors, with $7.1 billion worth of applications ticked off by FIRB.
Singapore, with $3.8 billion, followed by Malaysia ($3.4 billion) and South Korea ($2.5 billion) round out the top five.
Dave Platter, spokesman for Chinese international property website Juwai, described offshore investment as a “rising tide”.
Australian developers competing for Chinese buyers at the Shanghai Luxury Property Showcase.
Australian developers competing for Chinese buyers at the Shanghai Luxury Property Showcase. Photo: LPS.
Mr Platter said there was an “immense up-tapped demand” in China for international real estate.
“There are many, many, many potential Chinese buyers who haven’t even thought about it yet, but one day soon will,” he said.
“We expect Chinese investment overseas to more than double or triple by 2020, and that is not just in Australia – we mean globally.
“So we are not surprised at all by the trend, and we expect it to continue.”
