According to the latest Foreign Investment Review Board (FIRB) quarterly report, 1,123 residential real estate investment proposals with a total value of $1.3 billion were approved in the first quarter of the 2025 financial year.
This makes residential real estate the smallest industry by dollars invested, with commercial real estate dominating as the largest sector with $24.1 billion in approved investments.
China emerged as the largest source for residential real estate investment by value at $0.4 billion, followed by Taiwan, Hong Kong, Vietnam, and Indonesia at $0.1 billion each.
Combined, investors from Greater China were approved to purchase $600 million worth of residential real estate in Australia.
Industry experts suggest the timing of these investments is not coincidental.
Fiona Yang, Executive Partner of Plus Agency, a project marketing agency with more than $300 million in annual sales, points to seasonal factors driving the surge.
“The persistent foreign buying, especially from China, is a matter of timing,” Ms Yang said.
“We call it ‘Golden September and Silver October.’
“Those two months have always popped compared to other months of the year,”
She attributed this seasonal trend to a combination of holidays and buyers wanting to secure properties they can move into by year’s end.
The spring season traditionally brings more listings to the Australian market, making it an attractive time for foreign investors.
The quality of available properties during this period also plays a significant role in attracting foreign investment.
According to Ms Yang, developers targeting foreign buyers strategically launch their best projects during this time.
“Developers and especially those who target foreign buyers, know this is a good time to bring projects on the market,” she said.
Looking ahead, Ms Yang predicts the recently announced foreign buyer restrictions will create a surge in early 2025.
“The ban will drive a surge in foreign buyers in early 2025, so you will have a significant increase in FIRB transactions as they want to catch the last train,” she said.
“They worry that this is their last chance to buy.”
Daniel Ho, Co-Founder and Group Managing Director of Juwai IQI, said that Australia’s relatively stable political environment compared to other countries makes it particularly attractive to Chinese investors.
“Buyers from China still love Australia,” Mr Ho said.
“With the political uncertainty in the United States, Australia looks like a much friendlier country.”
