Hong Kong, mainland China buyers shrug off high prices and interest rates to pile into prime Australian property

Prices in major Australian cities like Perth, Brisbane and Adelaide are at a record-high, up by as much as 11 per cent over the past 12 months, Juwai IQI’s Daniel Ho says

Foreign buying is surging because of China lifting travel restrictions, an increase in foreign students and a steep rise in immigration

Reading Time:3 minutes

Pedestrians pass a residential buildings under construction in Brisbane, Australia, where prices have continued to rise despite higher interest rates. Photo: Bloomberg

Published: 9:30am, 27 Nov 2023Updated: 10:07am, 27 Nov 2023

Hong Kong and mainland China-based buyers are snapping up residential units in Australia despite elevated interest rates and surging home prices Down Under, according to agents.

Average home prices in some major Australian cities rose by about 1 per cent month on month in October, according to CoreLogic, a property data services provider in Australia and New Zealand.

In some cities such as Perth, Brisbane and Adelaide prices are at a record-high, having increased by as much as 11 per cent over the past 12 months, said Daniel Ho, co-founder and group managing director of property listing portal Juwai IQI.

The surge in home prices comes despite Australia’s central bank this month hiking interest rates by 25 basis points to control inflation that continues to trend higher than the target annual rate of between 2 per cent and 3 per cent. The interest rate now stands at 4.25 per cent, a 12-year high.

People walk past property listings on the window of an agency in Melbourne. Photo: AFP

However, foreign buyers, including those from Hong Kong and mainland China, have shrugged off the rate increases to pile into Australian property.