One of the most significant trends in the Australian property market during recent years has been the growing number of overseas migrants buying and renting properties. This is underlined by the fact that overseas migrants have accounted for up to 50% of total population growth in some areas of Australia.

Population growth traditionally is a key driver of the property market as it underpins demand for real estate. Not only do overseas migrants require rental properties when they first arrive in Australia, but in later stages they start buying their own homes and then investment properties. Professionals have found that a large number of our clients are overseas migrants who have arrived in Australia over the last decade and then decided to buy property after financially establishing themselves

A recent breakdown of where migrants located in Australia indicates that a large proportion move to New South Wales, Victoria, Queensland and Western Australia.

LOCATIONS FAVOURED BY OVERSEAS MIGRANTS MOVING TO  AUSTRALIA

Area                                      Number                          % of total

New South Wales                 50,186                                29.5%

Victoria                                  45,744                                26.9%

Queensland                          31,744                                18.4%

Western Australia                 30,805                                18.1%

South Australia                      8,667                                   5.1%

Tasmania                                 995                                   0.6%

Northern Territory                    630                                   0.4%

ACT                                       1,981                                   1.2%

Source: ABS

Migrants who have recently arrived in Australia or New Zealand should take their time to purchase property. Property laws in Australia can differ from overseas while there can also be major differences in property markets.

For example, Sydney is currently experiencing a property boom while house prices in suburbs of Perth are actually falling. Meanwhile in Brisbane, prices are starting to rise after a number of stagnant years. However, one rule that does not change regardless of whether you are living in Australia or overseas is that location, location, location drives long term property values. 

A good tip for recently arrived overseas migrants is to rent in an area you like to understand the dynamics of the local property market. You can then determine local real estate values in that area compared with surrounding suburbs as well having time to research factors that might impact on future property prices such as new infrastructure.