Global buyers flock to residential properties in Victoria, with New Zealand at the top of the list

International buyers are rushing online to check out properties in Victoria.

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Overseas interest in Victorian homes is surging, with New Zealanders most likely flocking online to check out the state's property market.

New data from PropTrack shows searches by overseas property professionals have increased by 13% compared to this time last year, while activity from New Zealanders has recorded a 10% increase, with more international searches now than any other country. occupies most of the searches.

But overseas investment from China in Australian homes has soared by $1 billion in the past financial year, with 39% more buyers from Beijing and other regions eyeing Victoria properties on realestate.com.au This could be a sign of even more investment to come in 2024.

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A 46% increase in property searches across the state originating from Indonesia suggests Australia's closest neighbor to the north may be considering buying in Indonesia.

The most searched suburbs by overseas onlookers were residences in Melbourne, South Yarra, Carlton, Richmond and St Kilda.

Net immigration last financial year was more than 500,000, and Treasury forecasts the figure will fall to 315,000 in 2024.

Blair and Jacinda Thorne moved to Melbourne from New Zealand with their children Eva, Chase and dog Bubbles in search of the lifestyle.Photo: Ian Currie

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But PropTrack economist Karen Dellow said some experts expect the goal to be reached by June 2024.

“Overseas search trends on realestate.com.au continue to align with the arrival of students and migrant workers, and based on these numbers, searches from overseas property seekers are likely to remain strong. It’s very sexual,” she said.

PropTrack economist Karen Dellow said searches from overseas property seekers were likely to remain strong.

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Ray White chief economist Nerida Conisbee said overseas investment in Australian housing would rise after falling sharply during the pandemic, but there were still some “limiting factors”.

“There's not much that[overseas buyers]can buy. They're restricted to new properties only, so it's going to be hard to find anything,” Ms Conisbee said.

“Most of the foreign investment in residential real estate in Australia comes from China. China has very strict capital control laws in place, so it's very difficult to get your money out.”

Foreign purchases in Victoria between 1 July 2021 and 30 June 2022, according to the latest data from Foreign Investment in Australia, which replaces the Foreign Investment Review Board, the government agency that tracks international property purchases. 2,757 residential real estate transactions from individuals are shown.

The number of transactions decreased by 1,054 in the next financial year, with only 1,703 transactions from July 1, 2020 to June 30, 2021.

Nerida Conisbee, chief economist at Ray White, said foreign investment was unlikely to return to the levels of the past decade.

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Ms Conisbee said the federal government's housing deal aims to build 1.2 million homes over the next five years, but the closest that could be built domestically was 105 when there was an “influx of foreign investment”. He said it was Mando.

“Foreign investment in Australian residential property was around $70 billion in 2016, but fell to less than $10 billion last year,” she said.

“It is unlikely that we will return to the levels of the past 10 years.”

Rental Search Australia co-founder Jade Costello said many new immigrants first rented properties before buying in Australia and often had different preferences for living conditions.

“People coming from Asia tend to keep their small properties, townhouses and apartments very open. People coming from Singapore or Hong Kong, safety is number one,” she said.

“For Brits and Australians, their dream is always a swimming pool. Being near a beach or somewhere with a swimming pool is their ultimate dream.

“And in the case of New Zealand, they simply tend to want the Australian lifestyle. So backyards and outdoor spaces are very beneficial to New Zealand families.”

Top countries to buy from in Victoria

1. New Zealand

2. United States

3. United Kingdom

4.China

5. Japan

6. Hong Kong

7. India

8. Singapore

9. Indonesia

10. Vietnam

Popular suburbs searched by overseas buyers in Victoria

1. Melbourne

2. South Yarra

3. Carlton

4. Richmond

5. St Kilda

6. Docklands

7. Brunswick

8. Southbank

9. Toorak

10. Glenn Waverley

source prop truck