Home News Melbourne: Local buyers in, foreign buyers out

Melbourne: Local buyers in, foreign buyers out

Font size :

Melbourne’s weekend auction hits a year-high 80 per cent as local buyers are given new opportunities to enter the property market following the retreat of foreign buyers due to increased stamp duty costs and tighter purchase approval processes.

According to the second quarter Residential Property Survey by the National Australia Bank, foreign purchase of new property fell for the third straight quarter to their lowest level in two years. 

“These changes have put the brakes on the volume and the speed of buying by international buyers,” said Jellis Craig director Richard Earle. He added that Chinese nationals, who comprise the largest percentage of foreign buyers in Australia, had pulled back from bidding for unrenovated and compromised B- and C-grade properties above $2 million--an advantage for local buyers.

There were also reported hasty resales on behalf of foreigners. For instance, Fletchers’ Rob Fletcher said that his company was recently instructed to on-sell two expensive properties bought just months earlier by Chinese clients. The buyers were unable to shift the funds needed out of China in time to pay for their purchases.

Though the slowdown in foreign buying has a good effect on local buyers, it also has a negative impact on expensive suburbs. James Buyer Advocates’ Mal James said that declines in activity by Chinese buyers had altered the ultra-top-end, with $7 million-plus properties not faring as well as they did compared to last year. However, local demand for these properties has picked up since May.

“That is definitely driving the market and giving it direction,” James said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
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