Expats heading home to Brisbane

Brisbane is proving popular with Hong Kong buyers and expats who are re-evaluating their circumstances due to coronavirus.

3/81 Moray Street, New Farm, Brisbane boasts magnificent views

Brisbane is proving popular with Hong Kong buyers and expats who are re-evaluating their circumstances due to coronavirus, while Sydney is also attracting Singapore-based expats.

Economic uncertainty, the closure of state borders and encouragement from the federal government to return has overseas buyers looking to plough their money into the Australian residential market.

Many agents would argue there is no better time to do just that, with the low Australian dollar and record low interest rates proving an attractive value proposition.

Brisbane’s relative affordability compared to Sydney and Melbourne has helped give it an edge with expats while flexible workplaces help orient them away from major financial hubs such as the larger east coast cities.

Expat-focused buyer’s agent Michael Cleary is looking to make 17 deals in the river city, with inquiry increasing significantly in the past few weeks. Cleary says the popularity of Brisbane has grown over the past 18 months as buyers find value in the affordable and maturing capital.

The deck at 19 Mackenzie Street, Lindfield

“There are a lot of expats who are originally from Sydney or Melbourne who are moving to Brisbane,” he says.

“A lot are coming back to Australia for lifestyle. They are looking in the $1m-$3m range where you can get a lovely home in a premier position. The city is also becoming more cosmopolitan.”

Brisbane agent Place Bulimba director Sarah Hackett says the growing number of Hong Kong buyers are looking to diversify their portfolios and secure a home now for when they eventually return. She says many buyers expect a slight discount on the advertised property value but will in return offer a cash contract.

“We are working with a number of Hong Kong expats looking to purchase in the high-end market of Brisbane,” she says.

“These are buyers who want to diversify their portfolio or want to secure a property back at home so they can eventually come back.

“The Australian dollar is low, so the exchange rate makes it cheaper to buy here, especially if they are paying in US dollars.

“These buyers will generally offer vendors a cash contract, but may expect a discount in return.

“Only last week, I had an offer from a Hong Kong-based buyer on a stunning Aquila apartment via a live stream open home.”

19 Mackenzie Street, Lindfield offers a relaxed lifestyle

Hackett sold a $6m riverfront luxury apartment, 10/170 Bowen Terrace, last year to a Hong Kong expat couple who plan to use it as their base in Brisbane three times a year.

She received an offer from another Hong Kong buyer on the riverfront “Aquila” at 3/81 Moray Street, New Farm complex following a video link inspection this week.

But high-end stock is limited in Brisbane and is becoming more constrained as COVID-19 concerns cause sellers to hold back from listing.

Ray White Bulimba agent James McKinley says expats are primarily looking for a three-bedroom apartment in the mid to high $2m range.

In Sydney, Knight Frank associate director, prestige, Adam Ross says he has more than 100 inquiries on a Lindfield estate on the city’s upper north shore since he listed it last Saturday.

“About 25 per cent of those inquiries are from expats, primarily in Hong Kong and Singapore,” says Ross, adding that the asking price is $9m to $9.9m.

“Many inquiries are from expats based overseas looking to take advantage of the exchange rate and make a return to Australia when they can,” he says.

“Expats are probably more interested in Lindfield than other areas, because it’s a property located with good local schools and the train line.”

The 19 Mackenzie Street, Lindfield property, owned by the Wines family, last traded in November 2012 for $5.4m.

The property on 2200sq m features four living areas, a cellar, a swimming pool and tennis court.

The vendors are looking to downsize and are heading to the lower north shore.

Ross says it’s a typical migration pattern.

“You get people coming out of houses on the upper north shore with a tennis court, looking for property in the lower north shore such as McMahons Point, Milsons Point, Lavender Bay and Kirribilli.

Mr Ross and William Laing of Knight Frank are selling the Lindfield estate by negotiation.

Meanwhile in Killara, a Taipei-based Aussie expat purchased 23 Elva Avenue for $6.3m after a 30-minute virtual inspection over Easter.

The selling agent, Lisa Davies of Ray White Upper North Shore, says she is getting a lot of calls from expats, particularly those in Hong Kong.

“Local buyers have dropped away a little bit but there has been a huge increase in overseas inquiries,” she says.