Gold Coast top choice in Queensland for foreign investors

Foreign buying expenditure in Queensland soared past the 10-year average with a total of $443.5 million spent on residential property during the last financial year, according to the latest Foreign Investment in Queensland Residential Property report by Colliers International.

This is an expenditure increase of 33% from the previous financial year, with 67% of property bought for investment purposes and the other 33% owner-occupiers.

Gold Coast continues to dominate as the top choice with $237.1 million spent last financial year – an increase of 43% from the previous financial year.

China is the dominant buying country for the third consecutive year, with its buyers spending a total of $184.9 million.

China accounted for 42% of total foreign purchases in Queensland and its buyers increased their spending by 73% from the previous financial year.

The report noted that 72% of Chinese buyers bought for investment purposes while the other 28% bought as owner-occupiers.

The report also noted that Chinese buyers preferred to purchase in the Gold Coast.

Singapore comes in second place with a total expenditure of $29.24 million on residential property in Queensland over the past financial year.

This is an increase of 150% on spending by Singaporean buyers from the previous financial year, but well below their peak in the 2002/2003 financial year of $54 million.

Gold Coast was the top choice for foreign investment by Singapore buyers.

However, the United Kingdom dominates the foreign buyers list for the past ten years, over which time its buyers have spent a total of $687.5 million.

The report notes that foreign purchasers from the United Kingdom prefer to invest in Brisbane.

Brisbane ranks as the second top foreign investment location with a total of $135.9 million spent across 298 residential transactions over the past financial year.

Although buyers from United Kingdom favour Brisbane as a foreign investment location, China dominated spending in Brisbane over the last financial year with $62.6 million spent.

Of the 298 residential property transactions that took place during the last financial year in Brisbane, 51% of purchases were for investment purposes and the remaining 49% were for owner-occupation.

Buyers from the United Kingdom spent $8.6 million over 22 transactions in Brisbane last financial year.

The report says the easing of interest rates and stable economic conditions should see the current level of investment by foreign nationals continue.

It is also noted that China will continue to dominate the Queensland residential property market as the state is seen as a safe haven which offers diversification for property investors from China.