In the past 50 years, Australian real estate has been one of the best return assets in the world. The average price has risen more than 60 times, and many speculators have made a lot of money. According to the housing price data released by the Australian Bureau of statistics, the overall housing price level in Australia has dropped 5.1% in the past year, with Sydney, Australia's most prosperous real estate market, falling 13.2% directly. What is the reason for the collapse of house prices in Australia? What's going on?
But the crazy real estate market has overdrawn the purchasing power of Australians. As early as 2016, there was a survey saying that the housing ownership rate of Australians was less than 65%, and in the 'millennial generation', the figure was only 28%. The latest data shows that the housing ownership rate of Australians is still declining.
In 2016, Australia began to impose additional stamp taxes on overseas buyers, especially in Sydney, Melbourne and other big cities. According to statistics, in Victoria, where Melbourne is located, an overseas buyer needs to pay basic stamp duty and additional stamp duty in a total of 12.5%, while in New South Wales, where Sydney is located, 12%.
According to a report by Dai Deliang, a real estate consulting firm, overseas real estate investment in China reached a new low of $15.7 billion in nearly four years in 2018, down 63% year on year. Among them, the drop in investment in Australia was not small, with the amount of investment falling to US $1.3 billion. A local real estate manager in Sydney said that the biggest reason for the decline in Australian house prices since 2018 was the departure of Chinese buyers.