New Zealanders top overseas search for Australian property

Kiwi interest in Australian housing has tripled on pre-pandemic levels, beating out China, the US and the UK to top the list of international property searches.

Overseas searches for Australian property have surged over the past year as migrating buyers look to make the most of open borders, with interest strongest from across the ditch.

New Zealanders accounted for almost one of five (17 per cent) Australian property searches from overseas in the past year, representing a near tripling in demand on pre-pandemic levels, up 257 per cent.

New data from housing researcher PropTrack found New Zealand was now the top country for international property searches on Realestate.com.au, beating out China, the US and Britain over the past three years.

PropTrack senior data analyst Karen Dellow said the trans-­Tasman interest was particularly interesting given the size of the population relative to the other top countries. “As soon as the border reopened, searches from NZ increased and overtook them all,” she said.

“NZ searches to buy and rent a property in Australia are about 15 per cent higher than searches from the UK, now in second place. The geographical closeness of Australia makes it a prime destination for New Zealanders, as does the ability to seek work without applying for a visa.”

Buy searches out of India grew 40 per cent, while China rose 19 per cent. Only one of the top seven countries for housing demand, Hong Kong, experienced a decline in interest.

The increased demand comes at the same time as Australia faces a housing shortage, with residential construction falling to decade lows after a pandemic building boom.

International interest in Australian property has surge in recent years, particularly from New Zealand.

Independent economist Saul Eslake believes economic uncertainty caused by New Zealand’s technical recession and rising unemployment may be making Australia more attractive. “There might be a pick-up in immigration from New Zealand to Australia as there normally is when unemployment is higher in New Zealand and … when their economy is doing less well than ours,” Mr Eslake said.

He said higher interest rates and recent tax reforms to negative gearing by former prime minister Jacinda Ardern could also be providing an impetus to investors.

Latest migration figures from the Australian Bureau of Statistics show on average 122,000 people arrive on subclass 444 visas, used mainly by New Zealanders, each month for the past 12 months.