The new historically low cash rate of 1.5% will accelerate demand for Australian real estate from overseas investors, a leading online portal for foreign investors has claimed.
“The rate cut is likely to drive the dollar down further, making property more appealing to offshore buyers,” Charles Pittar, CEO of Juwai.com, a Chinese international property portal.
“In the first half [of the year], Juwai.com sent 25% more Chinese buying enquiries to Australia, so we see demand accelerating, even if capital controls make the process longer for buyers who don’t yet have funds overseas.”
In New South Wales and Victoria, Pittar said a falling dollar could help ameliorate any impact the foreign buyer tax surcharges, announced in both the states’ budgets, might have on offshore property demand.
“In Queensland, a falling dollar could help increase demand for new developments throughout Brisbane and the Gold Coast by effectively giving them a price cut,” he added.
Robert Ding, sales executive with real estate agency Marshall White – who said 60% of buyers at his inspections are Asian, either locals or from overseas – said he expects Chinese buyer sentiment to remain strong, despite speculation the cash rate cut might reinvigorate house price growth.
“Even so, price growth isn't as rapid as last year. Chinese buyers see this as an opportunity to buy at a more affordable price in neighbourhoods that have seen rapid appreciation in recent years,” Ding said.