The property market is experiencing a surge in foreign buyers and renters as migration booms post-Covid.
In fact, the latest data from PropTrack show an increase in search activity based abroad, by a staggering 65% in 2022 compared to a year earlier and were 20% higher than pre-pandemic levels.
Karen Dellow, Senior Data Analyst at PropTrack commented:
"Buy searches were up 10% compared to 2021 and 11% higher than 2019 levels.
The sharp increase coincided with a resumption of migration from both workers and students when borders reopened after a two-year closure.
Total visas issued for all types of entry into Australia were 10 times higher in 2022 than in the preceding 12 months, and specific work and student visas were eight times higher, even with December data unavailable"
New Zealanders accounted for the most searches for homes to both buy and rent
According to the report, 30% of all overseas-originating searches came from New Zealand.
This is followed closely by property seekers in the United Kingdom, the United States, and India.
Ms Dellow further commented:
"Property seekers in New Zealand ended the year in the top spot for both buy and rental searches, pipping those in the United Kingdom and the United States to the post, having accounted for 30% of all searches.
India's property seekers claimed 4th place for the most buy and rent searches, with 11% and 13% of total searches, respectively.
Year-on-year rental searches were up in all of the leading countries, especially New Zealand, where rental searches increased by a staggering 76%, and India, which increased by 48%.
In contrast, buy searches decreased in all countries, except for NZ and India, which increased by 13% and 79%, respectively."
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Some cities are proving to be more popular than others
Melbourne proved most popular for both buy and rent searches in 2022, followed closely by the Gold Coast for buy searches and Sydney for rentals, according to the report.
Melbourne was the top destination for searchers from India, the UK, China, Hong Kong, and Singapore.
Sydney was popular with those looking from the US.
What's in store for 2023?
Well, immigration numbers will continue to increase in 2023 as students and skilled workers return to Australia.
Australia's low unemployment rate and skilled labour shortages will continue to attract migrants from overseas, especially from China and India.
Ms Dellow said:
“The arrival of large numbers of migrants from overseas, all seeking rental accommodation, could add to the current rental property shortage experienced across the country.
However, the proportion of overseas property seekers is low compared to those already living in Australia, so the additional burden is likely to be small.”
Source of charts and commentary: REA Insights
