Welcome to a Tuesday edition of 2 Sense on the Australian Property Podcast, where we break down the biggest news headlines of the week and tell you what this really means for you.
Mortgage Broker Chris Bates and Buyer’s Agent Pete Wargent discuss Chinese buyers roar back, Aussie property prices hit record highs, and how El Nino impacting farmland returns
Story 1: Chinese buyers return to Aus property
- As Chinese students and migrants return to Aus, pathways to foreign buyers pick up again. Enquiries are up 76% YoY in Q2 (Juwai) after 3 years of lockdowns
- FIRB saw approvals rise 40% over the year for Chinese buyers in FY2023, with a boom in the June quarter this year
- Where? Mostly a Sydney/Melbourne dynamic, and more into larger homes this time around – houses and townhouses more than small units
- Why? Chinese borders reopened in January so there is a lag effect at play here, and we are now seeing the catch-up
- Capital flight, aspirational to own Aus property and move to/live in Australia
- What next?
Story 2: Aussie property prices return to record highs (The Aus, PropTrack)
- Prices fully recovered downturn by September 2023, a bit different from what some have forecast!
- Where? Adelaide, Brisbane, Perth, and Sydney just -0.3% below the record
- Why? Record population growth, few forced sellers, low stock, rising rents, soaring building costs
- What next? Steadier growth into 2024 and 2025
Story 3: Farmland returns drop to 8-year low on El Nino
- Farmland impacted by weather, foreign owners have sold to lock in gains at high prices
- Why? Cyclical, weaker commodity prices, El Nino, and some sellers locking in gains
- What next? Foreign ownership to rebound as the world opens up, FIRB restrictions have had an impact
