It’s not only new homes that are being purchased, over a fifth of the purchases pre-approved by the Foreign Investment Review Board (FIRB) were established property, totalling $3.75 billion worth of existing homes.
From the latest FIRB data, 2855 foreigners received approval to purchase a second-hand property. Each of them spent an average of $1.3 million, which is $426.479 higher than Sydney’s median house price.
Laws allow temporary residents in Australia to buy one established property, but are required to utilise it as their primary residence. They are not allowed to lease the property and must sell it within 3 months of changing address.
The lion’s share of approvals still comprised new homes and off-the-plan projects, totalling $14.41 billion.
Foreigners are particularly attracted to developments in Sydney’s north, with foreign investors accounting for most of Epping’s Marine’s Hill sales. Buyers with Chinese background purchased 50% of the sales at The Atrium in Lane Cove, while local Chinese buyers accounted for 40% of North Ryde’s Centrale stage one release.
41 approvals were received by foreign developers, valued at $7.77 billion in off-the-plan projects, and a massive 7935 authorisations were granted to foreign buyers spending $6.64 billion on new residential properties.
Over $1 billion worth of redevelopment cases were approved by the FIRB. In these projects, existing homes will be demolished to give way to multiple residences.
Foreigners invested more on residential real estate in Victoria in 2014, but more investment went to NSW when commercial real estate is added, for a total funding of $34.94 billion.
Chinese nationals accounted for over a quarter of all foreign investments in the property market, making them the biggest investors in the country’s real estate for two consecutive years.