Overseas Property Seekers On The Rise
Despite the border restrictions on international arrivals here within Australia, there is an interesting trend that has emerged in property search activity, in particular by searchers in the United States.
While the U.S. economy is globally influential and is presently teetering on the elections, Australia is much more closely tied to the Asian economy rather than the U.S. Despite this more intimate tie to the Asian market, in particular with China, Chinese interest in Australian property has been seen to be on a steady decline across the past years, while at the same time, the US interest is slowly inclining.
As seen in the data collated by realestate.com.au throughout the past year, there has been a significant growth of 32% in searches from the U.S., peaking in June, and an increase of 10% by property seekers in Hong Kong, while declines can be seen by residents of the UK as well as New Zealand, and a huge drop in search activity by investors in China by 49%.
Though the reason behind this growth in interest by U.S. users may be attributed to the high levels of civil unrest and high COVID-19 cases, it may also be boosted by Australian expats who are looking to come home.
While most overseas users tend to search in areas already containing high proportions of residents from their home countries, as can be seen in the U.S. search activity in Mosman and Manly (which are both within the top 5 of searched suburbs in Sydney as well as where more U.S. born residents are residing), the Asian demographic tend to search for locations closer to top schools and universities. The demographic outside of Asia tend to gravitate towards areas located within proximity to Australian beaches.
Furthermore, U.S. residents are restricted to only buying new properties in Australia, and considering the strong U.S. dollar, there are evident searches in expensive property developments such as the Harrington in the Rocks, King & Phillip in Sydney CBD and Blue in Milsons Point.