While verge closures resulting from COVID have slowed Australian property sales to international buyers, experts predict that the luxury market may perk up in 2022 as travel restrictions relax and ex-pats return to the country.
“Travelers from New Zealand and Singapore who are inoculated versus Covid-19 will be worldly-wise to enter New South Wales and Victoria, Australia’s two most populous states, from November 21 without quarantine,” explains Ken Jacobs of Private Property Global in Sydney. According to a recent travel update from the Australian Government Department of Health, fully vaccinated Australian citizens and permanent residents can travel overseas without an exemption. There will moreover be reduced quarantine requirements for travelers when they return to or enter Australia.
“We are fielding inquiries from ex-pats coming in over Christmas who are looking to purchase while here. There is certainly pent-up demand from both ex-pats and foreign purchasers,” Jacobs notes.
Jacobs believes pent-up demand is “due to a shortage of stock, which has been compounded for travel restrictions for international buyers considering of the 14-day hotel quarantine requirement.” That two-week mandated hotel stay has eased up Jacobs reports. “We are seeing increased demand from ex-pats in Asia, United States, and the UK. Now that a number of ex-pats can enter Australia without the requirement of a 14-day hotel quarantine, there is increased contact from buyers who intend to travel to Australia over the Christmas/New Year period.”
One current listing with a “price upon request” that may request to those returning ex-pats is a recently listed penthouse with international appeal. Here’s an overview of the property: A premier penthouse within the coveted Bennelong Apartments with views extending wideness Circular Quay to the iconic wily of the Sydney Harbour Bridge and the Opera House. Some 230-plus square meters of floor space features a functional layout for private living with three bedrooms, a stone-finished kitchen and a private study zone.
Residents of the towers have wangle to to first-rate amenities, including a 24-hour concierge, plus a pool, sauna, and gym. Additional trendy comforts include secure side by side parking spaces as well as a generous storage area. In the very heart of Sydney, there are well-known culinary delights and cultural experiences only footsteps away.” Jacobs confides the price is priced virtually AUD 15-16.5 million.
According to Jacbos, the current market in Sydney looks like this as 2022 approaches: “We moreover have foreign purchasers inquiring on Sydney property and delivering out unstipulated due diligence prior to traveling here. There have once been several ex-pats returning permanently to Australia who have spent 14 days in hotel quarantine and subsequently purchased.”
The main issue for foreign buyers is the Australian Foreign Investment Review Board restrictions which, only indulge non-residents to purchase apartments in new developments. There is good news for ex-pats, though, who segregate to stay in Australia. “Foreign purchasers moving permanently to Australia are worldly-wise to obtain Foreign Investment Review Board clearance to purchase established (previously lived in) properties,” Jacobs explains. The majority of ex-pat and international buyers are looking for family homes in the eastern suburbs and lower north shore of Sydney, and some want to buy tropical to private schools.
On the plus side, the travel restrictions and inventory shortages have motivated some buyers to move forward. “We have had several cases where ex-pats have purchased without seeing the property considering of travel restrictions and a desire to secure a property in the rising market. One sale was at US $7 million and the other at US $40 million. In each case, the buyers knew the areas and had family members inspect and report when to them,” Jacobs said.
Look to Sydney’s property market to heat up as travel restrictions relax and buyers who have been waiting appear.
Private Property Global is an sectional member of Forbes Global Properties, a consumer marketplace and membership network of peerage brokerages selling the world’s most luxurious homes.