Property Buzz

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Foreign buyers are back in force, the Northern Territory looks to improve housing outcomes for Aboriginal communities, and auction volumes take a dip

Welcome to Property Buzz! I’m Juliet Helmke. Today is Tuesday, 25 June.

– A new report from the Treasury indicates that Australia experienced a significant increase in property purchases by foreign buyers in the 2022-2023 financial year, with a total of 5,360 transactions valued at $4.9 billion taking place across the 12 months, representing a 27 per cent increase from the previous year.

– Victoria was the most popular state for foreign buyers, followed by Queensland, with the latter experiencing a substantial uptick in activity compared to the 12 months prior. New South Wales remained stagnant, but led in higher-value property purchases over $1 million.

– The majority of purchases were properties valued under $1 million, with an average sale price of $914,000, challenging the stereotype of foreign buyers targeting premium properties.

– Despite the costs associated with buying property in Australia, such as stamp duty and foreign buyer application fees, foreign buyers are holding onto their purchases due to Australia’s strong economy and attractive lifestyle. The report noted that buying far outstrips selling by foreign owners, with just 1,119 homes sold over the year.

Turning attention to the Northern Territory now, and a 10-year, $4 billion remote housing partnership agreement has been struck to incorporate Aboriginal leadership in all aspects of the housing system in the region.

– The funding will be used to repair existing housing and build new homes across 73 remote communities, with the aim of halving overcrowding within the next decade.

– The agreement marks a shift towards an Aboriginal community controlled model of housing and aims to restore Aboriginal self-determination in the remote housing system.

– The partnership is expected to strengthen Aboriginal businesses across the territory, boosting the Aboriginal workforce and benefiting businesses over the next ten years.

And in auctions, volumes and preliminary clearance rates have decreased compared to the week prior, with 2,074 properties going under the hammer during the week ending 23 June 2024.

– Melbourne and Sydney saw a decrease in auction activity, with Melbourne’s preliminary clearance rate increasing to 72.9 per cent and Sydney’s decreasing to 70.7 per cent.

– Smaller capital cities saw varied results, with Brisbane leading in volume but decreasing in clearance rate, Adelaide maintaining the highest clearance rate despite a drop, and Canberra seeing an increase in clearance rate.

– CoreLogic predicts a marginal drop in auction volumes for the week ending 30 June 2024, with approximately 2,060 homes scheduled for auction.

That’s Property Buzz for today. 

See you again tomorrow, 26 June, for your daily dose of Property Buzz.

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