News

Foreign buyers still keen in Melbourne despite stamp duty hikes

12 October 2017

Foreigners are buying 17 per cent of newly built property in Victoria despite Government efforts to tighten the screws.

The lure of property in New South Wales for foreigners is even stronger, with 26 per cent of new builds there being snapped up by foreign buyers.

The figure drops down to around 8 per cent in Queensland.

The statistics come from Credit Suisse who used freedom of information requests on state governments.

The healthy interest in Victorian property has remained despite the Government lifting stamp duty for foreign buyers to provide a disincentive to those buyers.

Over the course of twelve months, foreign buyers pump $3.4 billion into the Victorian property market.

By far the most common foreign buyer in Victorian property was from China and Credit Suisse research analyst Hasan Tevfik says the data showed crackdowns weren’t having much of an impact on foreign property purchases.

“In both Victoria and New South Wales we see no evidence of a slowdown in foreign demand because of the stronger capital controls introduced by the Chinese authorities in December 2016,” he told ABC.

“Chinese demand for Aussie property continues at a strong rate despite the Government’s efforts.”

 

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