Melbourne’s real estate market has become a prime destination for international buyers, driven by its stability and attractive investment opportunities. Foreign buyers are increasingly interested in Australian real estate, with a significant increase in purchases this past financial year.

Recent data reveals a notable rise in foreign demand for Australian real estate. The Australian Taxation Office (ATO) reports that foreign buyers made 5,360 residential real estate purchases, spending a total of $4.9 billion, with an average purchase price of $914,000. Experts anticipate this trend will continue, with the federal Treasury and the Foreign Investment Review Board (FIRB) highlighting Victoria as the preferred location for foreign property buyers.

The majority of foreign buyers come from China, Hong Kong, and India. These buyers are not only keen on investment opportunities, but families are also purchasing properties for their children who plan to study, work, and eventually settle in Australia. Despite these significant investments, foreign buyers still represent only about 1% of the total real estate purchases in Australia.

The influx of international buyers is having a noticeable effect on Melbourne’s property market, driving demand and prices in key areas. Prestigious suburbs such as Toorak, Canterbury, Camberwell, and Box Hill have seen significant price increases driven by foreign investment. With domestic residents now facing rising competition from international investors, some property journalists say that foreign investment will help boost housing supply. However, others, like David Morrell, a buyer’s advocate for Melbourne’s top-end market, contend that it also drives up property prices, particularly in high-demand areas near the CBD.

Real estate professionals predict that demand from foreign buyers will remain robust. These buyers are drawn to Australia’s stable economy and political environment, making it a preferred destination for investment. PropTrack data shows that foreign-based searches for Victorian homes are concentrated in Melbourne’s CBD, Balwyn, Camberwell, and Glen Waverley.

Despite potential challenges from policy changes, the city continues to be a prime destination for both renters and buyers from around the world. Melbourne’s sustained attractiveness to international homeseekers underscores its strong appeal and robust real estate market. As international interest remains strong, this trend continues to reshape Melbourne’s property landscape, positioning local residents and markets for continued growth and dynamic changes.

Ongoing international demand from students and families drives our economy. To effectively balance and sustain these demands, Australia will need to continue developing.

Stay informed about major changes in international demand and how they could influence the price of your property. Interested in learning more about the Melbourne housing market or finding your next home? Visit Create Real Estate for the latest listings and expert advice.

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