You’ll never guess how much property foreign buyers are purchasing

The banks, APRA and the State Governments have pulled the welcome mat out from under the feet of foreign buyers, but it doesn’t seem to have deterred them.

The AFR report Credit Suisse’s finding that foreign buyers, almost all of them Chinese, a undeterred by local taxes or investment limits imposed in China are buying:

the equivalent of 25 per cent of new housing supply in NSW,
the equivalent of 17 per cent of new housing supply in Victoria and
8 percent of the new housing supply in Queensland.

Analysts at Credit Suisse, Hasan Tevfik and Peter Liu wrote in the report:

“Almost 90 per cent of foreign demand is from China and there is little evidence that new capital controls by the Chinese authorities, announced in December 2016, have slowed demand for Aussie housing.”

“We think the tailwind of Chinese wealth creation will mean more, not less, foreign buying of Aussie housing.”

The Credit Suisse report found foreign buyers are pouring an annualised $5.9 billion into residential property in NSW, $3.4 billion in Victoria and $700 million into Queensland.

That investment is just a tiny fraction of the national housing market, worth $6.7 trillion, or $5.6 trillion in the three east coast states.

However, the report notes, it represents a large proportion of the value of new housing supply.

Read more: The Australian Financial Review.

About Kate Forbes

Kate Forbes is a National Director Property Strategy at Metropole. She has 15 years of investment experience in financial markets in two continents, is qualified in multiple disciplines and is also a chartered financial analyst (CFA).
Visit www.MelbourneBuyersAgent.com.au