Foreign buyers at record 9.5% of established property demand: NAB's Alan Oster
National Australia Bank (NAB) group chief economist, Alan Oster, analysing the NAB Residential Property Index, found that foreign buyers’ demand for new and established property are at all-time highs.
The amount recorded by the index's research points to a surge in activity in both the new and established property markets from foreign buyers in 2014’s first quarter results.
“In terms of total demand, the survey suggests that foreign buyers now account for 13.9% of total new property and 9.5% of existing property demand,” Oster said. Established demand is even expected to grow a little stronger over the coming 12 months.
Foreign investment is expected to assist propping Up Property prices, although capital gains might start to stabilise.
“While sustained population growth, supply issues and foreign buying activity will put a floor under house prices, unemployment and the economy will limit gains,” he said.
ESTABLISHED PROPERTY UPDATE
Source: NAB Quarterly Australian Residential Property Survey: Q1 2014
Foreign buyers still appear to have their sights on New South Wales, with their involvement rising from 2013’s last quarter result of 7.6% to a record high of 12.7%.
In Victoria and Queensland there have been increases as well, with involvement in the market from foreign buyers increasing to 10% in Victoria and in Queensland to 9%.
This lines up fairly well with local investor activity, driving up to 24.6% in Victoria, and 26.7% in Queensland. In New South Wales, there was, however, a pull back to 27.3%.
NEW PROPERTY UPDATE
Source: NAB Quarterly Australian Residential Property Survey: Q1 2014
Foreign buying in the new housing market has reached an all time high of 13.9% of national demand.
There is especially prominent activity in Queensland, where 24.4% of the demand came from foreign buyers.
These increases align with the released figured from the Foreign Investment Review Board that have been under much discussion.