The new PropTrack Overseas Search Report shows that searches from overseas are now at their highest levels since the start of the Covid pandemic.
Not surprisingly in March 2020, as the pandemic began, searches from overseas property seekers on realestate.com.au dropped by 15% and then remained relatively static until border restrictions were lifted in late 2021.
However, in the past four months, combined buy and rent searches have hit the highest levels on record.
This of course coincides with an influx of international students and migrant workers who have arrived since January 2022 who will only make our rental crisis worse.
And although the volume of workers and students arriving in Australia has not yet returned to pre-pandemic levels, numbers are ticking upwards sharply.
Where are the searchers from?
According to PropTrack data, approximately three-quarters of buy and rent searches come from the United Kingdom, United States, and New Zealand, although the volume of searches from India continues to increase.
And considering the size of China's population, the volume of searches from this country pales in comparison at 5% for buy searches and 4% for rent.
It can be noted that searches for rentals have soared since borders reopened.
Karen Dellow, Senior Data Analyst at REA commented:
"The largest increase in rental searches comes from India, increasing by 159% year-on-year, although all the top countries have seen double-digit growth, with the UK, New Zealand, and China experiencing close to 100% increases."
Where overseas searchers are keen to live
Obviously, capital cities attract the most search activity from overseas, as they are big travel hubs and contain major universities and job opportunities.
However, the Gold Coast has been top of the most-searched regions for many years, and it shows that lifestyle is a major factor for property seekers from overseas.
Ms Dellow said:
"When breaking down the most searched suburbs by country, we see where some nations have different preferences.
Searchers from New Zealand have a preference for Queensland, whereas property seekers from China and Hong Kong gravitate toward suburbs with high Chinese populations.
As non-residents can mostly only purchase new builds, it is interesting to look at the type of developments they are looking at.
Inner city apartments are popular, especially those with luxury amenities and hotel-style services."
Looking ahead
Ms Dellow shared her insights on what's ahead:
"With current work and student visa entries still 60% lower than at their peak in January 2020, there is a way to go until migration returns to pre-pandemic levels.
However, with rental market pressures increasing and vacancy rates at an all-time low, any additional demand from overseas will add to the stress currently being experienced by potential renters."
With that said, overseas migrants are indeed essential to the prosperity of the country, providing a highly skilled workforce and increased cultural diversity, so it is good news that we are seeing an increase in migration and higher demand for properties.
Source of charts and commentary: REA Insights
