Foreign buyer-funded new apartment sales will more than halve over the next three years
Foreign buyer-funded new apartment sales will more than halve over the next three years, latest forecasts by MBA show.
It comes as local banks cut back funding to overseas buyers, along with the higher surcharges and taxes levied by state governments.
The MBA forecasts commencements of new units supported by foreign purchases will fall from the rolling 12-monthly peak of 48,251 in June last year to 23,304 in June 2019.
The group's latest Industry Forecasts Australia June 2017 report says foreign investor activity is expected to "fall considerably" in the next two years as recent moves by the commonwealth government and by the NSW state government tighten restrictions on foreign property buyers.
The report predicts apartment construction in NSW to fall by almost 40 per cent over the next four years, noting the NSW market with its high reliance on domestic and offshore investors will face the biggest correction as Australia's biggest-ever housing construction boom slows.
