Record High Interest from Overseas Investors in Australian Properties – Sydney Auction Clearance Rate at 76%

Week’s Key Focus

In the last quarter, the number of overseas buyers searching for properties on realestate.com.au reached its highest level since 2019, indicating a continued growth in interest from overseas investors in the Australian real estate market.
Simultaneously, the vacancy rates in major capital cities’ rental markets have nearly reached zero. Over the past three months, overseas buyers’ searches for rental properties have increased by 34% compared to the pre-pandemic period in 2019.
Despite a record high number of listed properties, the search volume for property purchases by overseas buyers on realestate.com.au has also grown by 29% during the same period.
Karen Dellow, Senior Data Analyst at PropTrack, pointed out, “The return of international students and overseas workers has created an urgent need for suitable accommodations, making rental properties their top priority.”
The majority of the increased demand comes from China and India.
In the past 12 months, buyer search activity from China has increased by 40% compared to the same period in 2022. Similarly, rental property searches from China have witnessed a growth of nearly 55%.
By the end of March 2023, property-related search volume from India has seen a year-on-year growth of 37%, while rental property searches have increased by 28%.
These data indicate a sustained growth in interest from overseas buyers in the Australian real estate market, particularly with significant growth trends observed among buyers from China and India in both property purchases and rentals.
If the current trend continues, with population far exceeding the number of available properties, Sydney’s construction will have to focus on high-density developments. Consequently, the supply of low-density housing is becoming increasingly scarce, resulting in soaring prices.

80% SOLD – Pemulwuy House Land

Auction Results This Week

Sydney: 576 properties participated in auctions, 367 auction results reported, 280 properties sold, clearance rate of 76%, total auction value of AUD 351,674,300, and a median house price of AUD 1,565,000.

Melbourne: 639 properties participated in auctions, 507 auction results reported, 368 properties sold, clearance rate of 73%, total auction value of AUD 294,301,718, and a median house price of AUD 932,500.