Overseas buyers account for up to a quarter of new home sales

More than a quarter of new homes built in New South Wales are being bought by foreign buyers, with Victoria close behind and closing in, according to new research from Credit Suisse.

Key points:

- Foreign buyers account for an estimated 26 per cent of new property purchases in NSW;

- Citizens of China (including Macau and Hong Kong) and Taiwan account for 87 per cent of overseas buyers;

- Foreign buyers spent about $10 billion over the past year on NSW, Victorian and Queensland real estate.

Using revenue figures obtained from state governments under freedom of information requests, Credit Suisse calculated that 26 per cent of new homes sold in New South Wales between September 2016 to June 2017 were purchased by foreign buyers.

The figure was not much lower in Victoria, with 17 per cent of new home purchases coming from overseas buyers.

Queensland was less attractive to foreign buyers, with 8 per cent of new homes sold to non-residents.

Credit Suisse was able to obtain the breakdown, because these three state governments now charge higher stamp duties on overseas buyers.

The stamp duty surcharge is 8 per cent in NSW, 7 per cent in Victoria and 3 per cent in Queensland, but does not appear to have put a significant dent in demand from overseas buyers.

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