The Governments tougher restrictions on foreign investment seems to have had little effect on overseas buyers purchasing Australian property.
The latest NAB Quarterly Australian Residential Property Survey found while foreign buyers were less active in new property markets, they had increased their presence in established markets, especially in Victoria.
The percentage of foreign buyers in the new property market dropped from 15.6 per cent to 12.8 per cent in the past quarter but in the established property market the number of foreign buyers had increased to 8.6 per cent from 7.5 per cent at the start of the year.
NAB Group chief economist Alan Oster said foreign buyers accounted for more than one in ten sales in both Victoria and NSW.
Units were more appealing to foreign buyers, accounting for 16.1 per cent of all apartment sales nationally in the second quarter of the year.
Foreign buyers were behind 28 per cent of all new apartment purchases in Victoria and 16.5 per cent in New South Wales.
How much did they pay?
More than three quarters of foreign investors bought apartments valued at less than $1 million, with 41% of those priced below $500,000.
More than 16% of all apartment sales were in the $1 million to $2 million price range, with a much higher percentage of these in New South Wales where they were responsible for one in four purchases at that price and almost 12 per cent for more than $2 million.
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