Sydney, Australia – one out of every six homes is bought by a foreigner.
News of overseas investors taking over the Australian real estate market has gained a lot of attention recently – this after the National Australia Bank’s (NAB) survey revealed that a staggering 17 percent of newly-built apartments were sold to foreigners in the last third quarter alone. According to reports, these survey results provide a clearer picture to, and is one of the potential causes behind recent house price increases.
The NAB’s survey will reportedly be closely monitored by the country’s central bank in its efforts to keep property prices in check and under control. The alarming rate at which home prices have risen may be attributed to low interest rates, strong population growth, and tax incentives awarded to housing investors. Wary of the risk of a potential housing market crash, the central bank said it is considering taking steps towards limiting mortgage lending from here on out.
is the country’s 2nd most populous state, has become a favourite of foreign investors – leading the numbers with around a quarter of new properties sold in the third quarter alone. The disconcerting first-time home buyer to foreign buyer ratio has caused Australian lawmakers to conduct an inquiry into housing affordability around the country. The report is set to be issued next month.
