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Another property group has contradicted the popular view that offshore investors are pushing locals out of the market.
Nyko Property told the federal inquiry into Foreign Investment in Residential Real Estate that overseas investors tend to buy different products to their Australian counterparts.
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“What is often forgotten is that foreign nationals can’t buy existing residential property, but they can typically get approval to buy residential property in new developments so they are not competing with first home owners or anyone else for those existing properties,” the research firm said.
Nyko Property said overseas investors usually target apartment buildings in Melbourne, Sydney and Brisbane CBDs.
“This is a market that Nyko Property’s clients in Australia normally are not very supportive of as an investment option and are therefore not competing with foreign investors for those properties.”
LJ Hooker recently told the federal inquiry that foreign investment in real estate was good for Australia because it boosted the economy.
Nyko Property also said that foreign buyers were supporting employment in the construction sector.
“It’s worth noting that the construction industry makes up 9.1 per cent of the Australian workforce and a change in the rules for foreign investors making it more difficult for them to invest in new Australian property would be detrimental to that industry in a workforce that is already struggling with job losses in manufacturing.”
