Property News & Hotspots

Aussie's drive prices not foreigners

By Landsdale Property Group on February 1, 2017 in Property News | comments

A Treasury working paper based on five years of research found foreign demand accounts for only a small proportion of the increase in property prices in recent years. The low number of building approvals and completions in the late 2000s has also impacted price growth.

The nation's property values have increased by an average 42% over the past 4½ years, according to one source, dominated by a 67% rise in Sydney and 46% in Melbourne.

Nearly 70% of foreign investment approval applications for housing were from Chinese citizens, up from 50% six years ago.

"It is difficult to directly attribute price growth in Sydney to foreign investors alone," the Treasury paper said.

State governments have reacted to the growing foreign buyers' demand by raising stamp duty on foreign transactions to slow down the activity.