The number of Australian homes bought by foreigners fell last year, as high stamp duty costs deter potential buyers.
The combined value of approved residential real estate proposals from Chinese and Hong Kong buyers , dropped last financial year from $4 billion to $3 billion.Property portal Juwai IQI co-founder and group managing director Daniel Ho said affordability has unexpectedly become an issue for foreign buyers here.
The combined value of approved residential real estate proposals from Chinese and Hong Kong buyers dropped from $4 billion to $3 billion last financial year.Temporary residents can apply for approval to buy an established home to live in for the duration of their stay, or can also buy an established home for redevelopment if it increases the housing stock.
He said foreign buyers have been declining since the introduction of fees and surcharges in 2017, especially in unit-heavy markets such as Sydney’s Chatswood and Burwood. It was more difficult to move cash from countries like China and Indonesia where there were strict limits on withdrawals, Stier said.In Melbourne, the top destination for Chinese buyer interest in Australia, foreign buyers face an 8 per cent stamp duty fee.Director at Belle Property Balwyn Robert Ding said overseas buyers were delaying property purchases until they obtain permanent residency, when the increased stamp duty no longer applies.