As has been seen in other states, prior to the introduction of a foreign purchaser stamp duty surcharge (as at 1 January foreign buyers will pay an extra 7% stamp duty) there was an increase in activity for foreign buyers.
In the December quarter, 20% of sales were to foreign buyers which was only slightly up from quarter three which saw 19%. This was up significantly from the 13% of sales seen in 2017.
Mr Cresp said, “We are expecting low levels of foreign buyers in 2019. Perth has seen very little interest from the Chinese in buying apartments, and this has been the main source of foreign buyers on the east coast. We have continued to rely primarily on our traditional offshore markets of Singapore, Malaysia and Indonesia and these markets are quite price sensitive.”
“We are already hearing from developers, that the foreign buyers whom they were talking to last year, have lost all interest in Perth, if they had not purchased last year.
“Consequently, we are expecting that the proportion of foreign buyers in 2019 will be well below the 13% seen in 2017. As you would expect, this is a concern for developers as the foreign buyers are often the first buyers in a development, and greatly assist the developer getting to their pre-sales targets,” commented Mr Cresp.