International interest in Australian properties has seen a significant jump, with searches from overseas buyers and renters increasing in July.
According to PropTrack, searches for properties to buy rose 9 per cent month-on-month and 3 per cent year-on-year, while rental searches increased 8 per cent compared to the previous month.
The United States emerged as the primary driver of this growth, with a staggering 51 per cent year-on-year increase in searches for properties to buy.
This surge coincides with intensifying speculation surrounding the upcoming US presidential election.
Senior Data Analyst at PropTrack, Karen Dellow said international searches for Aussie properties increased in July in large part due to elevated interest from the United States,
“It is more likely that Australians living abroad are the majority of searchers when there are events that affect their standard of living,” Ms Dellow said.
“It is common to see a spike in searches from overseas when there is political or economic turmoil in other countries.
“The increase in searches from the United States came at the time when polls suggested Donald Trump was favoured to win the election.”
Other countries also showed significant interest in Australian real estate.
India (21.8 per cent), Singapore (19.9 per cent), and the United Kingdom (15.7 per cent) all recorded substantial year-on-year growth in searches for properties to buy.
Kevin Chokshi from Ray White Cheltenham said that he’s started to see more interest from buyers in the upper end of the market.
“For premium properties, we’re definitely seeing interest from expats—Australian buyers who live overseas—rather than international buyers per se,” Mr Chokshi said.
“It seems the thinking is to buy while the market is slower, especially with the current immigration trends.
He said overseas buyers are likely looking to buy with lower competition in the market at the moment.
“Traditionally, 75 per cent of properties will be purchased locally.
“But we’re starting to see a little bit of interest from overseas clientele.”
Auctioneer Clarence White said the areas that attract international buyers across Sydney remain steady.
“We often see a lot of Chinese investment, particularly in areas like the North Shore, which is a market dominated by Chinese buyers, especially in the middle North Shore,” Mr White said.
He said that it wasn’t surprising that buyers are thinking about investing in Australia.
“From a general perspective, I completely understand why people internationally want to buy property in Australia,” he said.
“We have a steady economy, a free and open market, and a Western society.
“Australia offers a lot of great properties, it’s a fantastic place to live, and it’s a very safe place to invest your money so, it’s understandable why it’s a popular destination.”
The rental market saw a slight decline in overall international interest, down 1 per cent compared to July 2023.
However, certain countries bucked this trend, with Hong Kong (65.7 per cent) and Singapore (37.1 per cent) showing remarkable increases in rental searches over the past year.
Ms Dellow said that the focus of international property seekers varies by country of origin and property type.
“Buyers from China and Hong Kong, for example, search the most for suburbs with high Chinese populations such as Balwyn, Glen Waverley, and Box Hill, all in Victoria,” she said.
“Searchers from the US and UK, aside from inner-city suburbs, gravitate towards beachside suburbs, such as Manly, Brighton, and Fremantle.”
She said the United States now leads in property searches across most regions, with a few exceptions.
“The United Kingdom takes the top spot for searches for South Australia and Western Australia, and New Zealand remain the top country for Queensland searches,” Ms Dellow said.
Looking ahead, Ms Dellow said that international interest in Australian real estate will continue to fluctuate based on global events and seasonal factors.
“It will be interesting to see whether search activity from the US changes in the coming months, before and after the election,” she said.
