Interest from foreign property seekers is surging as migration has bounced back to pre-pandemic levels.
According to PropTrack, since the last Overseas Search Report in July 2023, searches from abroad have continued to increase, with buy searches up 11.5% in the past three months and rent searches up 7.8%.
Ms Karen Dellow, Senior Data Analyst at PropTrack said:
"Both buy and rent searches are now well above pre-pandemic levels and are set to continue rising now that migration has returned to previous levels.
A quarter of buy and rent searches from overseas come from New Zealand, and interest from our nearest neighbour has increased monthly.
Rental searches from across the Tasman have increased by 38% from last year, and buy searches are up 7%."
Based on PropTrack's data, interest from China waned in 2020, plummeting by 53% in the 12 months to September 2020.
However, in March 2023, searches for properties to buy skyrocketed and have returned to pre-pandemic levels.
Rental searches from China have nearly doubled compared to pre-pandemic levels.
This rise is mainly because students and migrant workers are returning to our country.
Ms Dellow further said:
"In July 2023, arrivals from migrant workers and students hit the highest level since January 2020, averaging 265,000 new arrivals each month over the past six months.
Rental searches in particular are a leading indicator of overseas migration and have mirrored the trend of permanent and student arrivals to Australia, illustrating new arrivals’ relationship with the rental market."
PropTrack's data also highlighted that at the beginning of 2022 when Australia's international border re-opened, the number of arrivals from overseas began increasing month-on-month, as did search volumes.
The border opening made a big difference to the population, as per the latest Australian Bureau of Statistics (ABS) data.
Australia's population increased by 1.9% in 2022, adding 496,800 people over the year, marking the largest increase in 15 years.
Ms Dellow noted that:
"Of that total increase, 78% came from overseas migration, most of which were overseas students.
Comparing the increase in rental searches over the same period, the data also shows a significant increase in interest from overseas searchers."
Where are overseas property seekers looking?
According to PropTrack's data, the most searched location in the past six months on realestate.com.au was Melbourne, which is hardly surprising considering it is the first port of arrival for many migrants and is also a major centre of commerce and study.
Meanwhile, the sandy beaches and year-round sunshine of the Gold Coast were also in high demand with overseas buyers.
Top 20 locations for overseas property seekers
Suburbs where overseas interest has increased
Based on PropTrack's data, searches for properties to buy in Brunswick East in inner Melbourne, have increased by 60% in the past six months, closely followed by Carlton North.
Both suburbs have experienced significant development in the past few years and are close to the University of Melbourne and the CBD.
Ms Dellow commented:
"The largest growth locations for renters are an unusual mix of city and regional areas, with searches for South Western Sydney increasing by 111% in the past six months, closely followed by Torquay in regional Victoria.
There are plenty more beachside locations on the list, including Mermaid Waters and Mooloolaba, both in Queensland."
As migration returns to pre-pandemic levels, more foreign property seekers are showing interest in settling in our country.
Ms Dellow further commented:
"Although many migrants will initially rent, stay with family or live in share accommodation, given time the majority will go on to buy a property.
Data from the ABS shows that 62% of permanent migrants end up buying their own homes in Australia.
Therefore the top locations searched for by overseas property seekers will likely be where migrants set down permanent roots in the future."
