Perth, WA - In the June quarter, foreign buyers’ demand for property in the Australian market dropped to its lowest point in two years. The National Australia Bank’s residential property survey found that the percentage of overall foreign buyers fell to 10.2 per cent, the weakest figure in the past two years.
It was 13.9 per cent in the first quarter.
Similarly, the percentage of foreign buyers in the new property market fell to 7.2 per cent. It was originally 9.5 per cent in the first quarter. These figures show significant drops.
Local Investors
The National Australia Bank found that local investors were more active in the new property market than foreign investors in the June quarter. They accounted for almost a third of new property sales, while foreign investors held a much lower percentage.
Foreign investors have long been a trend to watch, as many Australians wonder if they are driving the prices of property. Alternatively, others wonder if foreigners are taking away housing supply, making it more difficult for Australians to purchase a new home.
Victoria Foreign Buyers
In Victoria, the trend was a little bit different in the June quarter. Victoria had 17 per cent foreign buyers in new-build developments in June. In addition, Victoria also had the highest number of foreigners investing in its existing properties. In Victoria the figure is 9.1 per cent foreign investment. It is closely followed by New South Wales at 8.9%.
At the same time, the housing market has slowed somewhat in all the major state capitals of Australia. The price hike was recorded at 9.8 per cent in 2013, but forecasted for only 4.6% in 2014-2015.
About First Home Owners Centre
FHOC is the First Home Owners division of HIA award winner Aveling Homes, one of Western Australia’s most quality focused building companies. What this means for you is that above all else, quality and affordability is what you can expect when you choose FHOC.
Visit the FHOC website at http://www.fhoc.com.au for more details about our services and available financing options for first time home buyers. Our financial experts work with you each step of the way to build the home of your dreams.
First Home Owners Centre Contact Information
24/7 Sales Enquiry Line: (08) 6144 1088
Email: [email protected]