Markets Escalating due to cashed-up Expat Property Buyers

Aerial view of Brisbane

With hundreds of thousands of expats returning to Australia in the past year, bringing their often stronger currencies with them, the property market in Australia is witnessing record prices in some areas.

PIPA Chairman Peter Koulizos said expats were returning home en-masse with plenty of real estate dollars behind them, often in stronger currencies than the Australian dollar, which supercharges their buying power even more.

“Expats from expensive cities like London, Hong Kong and New York often don’t consider our real estate prices unaffordable and are happy to pay what is necessary to secure a prestigious property in a desirable location” he said.

“Our members report that some of the sale prices being achieved in Sydney, for example, seem insane – even in booming market conditions – with new money or the expat factor the likely reason.”

“Indeed, some properties are selling for hundreds of thousands of dollars more than what anyone – including experts – had predicted, which is leaving sellers very happy, but many buyers and property investment professionals scratching their heads somewhat.”

Other locations, including Brisbane, Adelaide, and regional areas are also witnessing record sale prices due to ‘new money’ coming from more expensive interstate locations.

Real Estate Buyers Agent Association (REBAA) president Cate Bakos said “Cashed-up expats are certainly contributing to some of our silly runaway prices in Victoria, but we also have a lot of bottled-up energy from local buyers, too, particularly those who have managed to save during COVID,”

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