PHOTO: Indian property buyers. FILE
It’s often been said Chinese property buyers are dominating Australia’s real estate scene, but experts say a different investor with an unexpected approach is overwhelming one state’s housing market.
The nation’s property scene has experienced a 2.7 per cent jump in the number of new homes being purchased by international buyers in the first quarter of this year.
Consequently, the market share for this category now sits at 7.9 per cent, with real estate experts claiming about half of these are Chinese buyers – particularly in Sydney.
However, property specialists in Melbourne have since come forward saying another type of homebuyer is increasing in the city’s western suburbs.
Real estate agents and mortgage brokers have revealed they’re noticing a larger clientele of Indian, Malaysian and Singaporean property buyers seeking out suburban homes.
Just under 784,000 individuals with Indian ancestry reside in Australia, of which 38 per cent live in Victoria, which has the largest Indian population in the country.
The trend comes after Victoria saw 2757 foreign property transactions between July 2020 and June 2021, of which 389 were valued over one million dollars.
And it’s anticipated this number will surge in coming years with experts predicting the nation’s population will increase by 900,000 people by the end of June 2025.
But despite Victoria embracing diversity, Melbourne property specialists say the rise in foreign buyers could come with dire consequences.
Real estate agents are noticing more demand for Melbourne’s west. Picture: Dylan Coker/NCA NewsWire
Why foreign buyers are choosing Australia
Real estate investor and entrepreneur Hari Yellina told news.com.au there are several reasons why Indian buyers choose the Australian property market.
This spans from Australia’s educational system to the nation’s political scene, with other motives including the lifestyle, employment opportunities and long-term capital growth.
“Australia is known for its world-class educational institutions, which draw a large number of Indian students,” Mr Yellina said.
“Many Indian families invest in Australian properties to provide accommodation for their children studying there or to capitalise on the growing demand for rental properties among students.”
Migration and familiarity is another reason why Indian buyers particularly choose Melbourne, with many purchasing a home in a bid to obtain permanent residency.
“The presence of a large Indian community in Australia may offer a sense of familiarity and support for new migrants and investors,” Mr Yellina said.
“This factor, combined with the widespread use of English, makes Australia an accessible and comfortable choice for Indian buyers.”
Mortgage broker Heni Kwan, who ran as an independent for the seat of Werribee in the 2022 Victorian state election, added there’s been a push politically to strengthen the relationship between the Australian and Indian community.
“(The government) are pushing for the relationship between Australia and India to be stronger and by bringing a lot more students from India here to study … they’re (giving them an incentive) to stay here,” she told news.com.au.
READ MORE VIA NEWS.COM.AU
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