Home News It appears the investor boom has finally run its course

It appears the investor boom has finally run its course

Font size :

Investor boom has finally ended.

If figures are anything to go by, it’s safe to assume that the investor boom – one of the reasons behind the skyrocketing home prices – is safely on the downturn.

According to the National Australian Bank's latest Residential Property survey, foreign purchases accounted for roughly 8% of newly-established homes and 4.1% of existing dwellings during the quarter ending in September, extending the easing seen over recent quarters.

Demand from foreign buyers peaked during the middle of 2014 and started slowing significantly around the end of 2015.

"The results continue to highlight a decline in foreign buying activity resulting from policy changes in China on foreign investment outflows and tighter restrictions on foreign property buyers in Australia," the bank said, as quoted by Business Insider Australia.

The results of the survey coincide with information regarding the decline of applications received by the Foreign Investment Review Board (FIRB) to buy an Australian residential property during the 2016-17 financial year. According to FIRB figures, the number of approved applications went down to 13,198, around 67% lower than the preceding year's 40,149.

Citing a separate analysis from Juwai.com, Business Insider reported that Chinese investment in Australian property declined by 26.8% to US$17.4bn last year.  Residential property accounted for US$14.1bn of the total investment.

The decline in Chinese investment was due to the introduction of capital controls in China, which restricted the outflow of money for property purchases. Given this, the higher state taxes on property investment, and the stricter rules in investor lending, it can be concluded that the surge of foreign investors has finally circled down the drain.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

ANZ plans ramping up investor lending ANZ plans ramping up investor lending

The bank's home lending was almost flat due to the decline in investor loans Read more

Foreign buyers are ditching Australia's housing market Foreign buyers are ditching Australia's housing market But one state remains a bright spot for foreign property investment ... Read more

Going to the bank or meeting a broker? Going to the bank or meeting a broker? Both can help new home-owners in securing a loan, but which one will hand down the best deal? ... Read more

How to approach a 'honeymoon' rate How to approach a 'honeymoon' rate The first year of a home loan is considered to be the most stressful, but will a temporary discount help you get ahead? Or trip you up in the long-run? ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Feb 20, 2019
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords