Stats: Foreign buyers dwindling

Tighter lending policies have taken a toll on foreign investment in residential and commercial real estate: FIRB

Approvals for foreign investment in Australian residential real estate dropped from $47bn in 2015/16 to $25bn in 2016/17, according to the Foreign Investment Review Board’s Annual Report 2016–17. The report regards the introduction of application fees in 2015 as a significant contributor to the reduced applications. Other factors that may explain the decrease include China’s tighter capital controls and the introduction of state-based taxes on foreign investors.

The year was challenging for brokers who used to work regularly with foreign buyers, according to Tana Xuren, MD of Victorianbased brokerage uBroker. Her team has seen a large number of foreign investors losing interest in Australian properties and instead opting to invest in Malaysia, Thailand, Japan and Europe.

However, China continues to be the largest source of foreign investment in Australia, with 9,714 approvals amounting to $39bn in investment. The US and Canada trail behind.