The declines occurred despite a modest overall rise in foreign-owned Australian homes, which increased from 40,177 to 40,460.
The number of Japan-based investors rose 46% from 1,168 to 1,711, making Japan the fifth-largest foreign owner of Australian homes, overtaking both the United Kingdom and the United States. By state, Victoria holds the highest number of foreign-owned properties at 16,403, ahead of New South Wales (9,198) and Queensland (8,465).
Top 20 source countries of foreign investment in Australian residential land
Registered interests in residential land
Source: Australian Taxation Office, Register of Foreign Ownership of Australian Assets
Real Estate Institute of Australia chief executive Jacob Caine (pictured right) linked the Chinese sell-off to property market difficulties in China, but warned of consequences for Australian renters.
“Like it or loathe it, Australia’s housing ecosystem relies significantly on foreign cash to support it, and to ensure that the more than $7 million renters across Australia have access to adequate rental homes,” he said. “So it’s concerning to see less of that cohort that, in recent decades, have been very active and that has contributed to the health of the Australian property sector.”
Ray White Group chief economist Nerida Conisbee agreed China’s domestic property troubles were a factor, adding that policy settings had also deterred investors.