Daniel Ho, Juwai IQI co-founder and group managing director and The Property Tribune contributor, said the demand for residential real estate was down thanks to the pandemic and associated restrictions.
He also noted that it is harder to finance a purchase in Australia as a foreign buyer given stamp duties are high along with foreign investment application fees. There was also a surprising factor.
“Another factor holding down the number of applications is actually making it easier for foreign buyers,” said Mr Ho.
“Foreign buyers now only need a single approval, no matter how many properties they have to look at before they buy one. Under the old system, buyers needed approval each time they hoped to buy a property.
If a deal fell through, they would need to go through the approval process again on the next property that they sought. This reform is very welcome. “
Mr Ho noted that Queensland received more investment than New South Wales for the first time.
“Queensland is more affordable, offers a great lifestyle, and has abundant new development property for sale. In New South Wales, high construction costs, unaffordability, and constrained infrastructure contributed to the lower number of purchases.”
Despite this, Mr Ho believes that Australia remains highly attractive to foreign buyers.
‘The high costs are balanced out by its strong educational offering, lifestyle benefits, proximity to Asia, and dependable markets and economy.
“The fact that total approved for an investment increased 19% despite the pandemic demonstrates how good Australia’s brand is.
“It also shows how much the country depends on foreign capital achieve its potential. In a year of unprecedented global disruptions to trade, investment and travel, Australia still came out a winner.”
Read more: The Property Tribune
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