Australia’s tighter immigration policy poses risk to luxury home market
- The withdrawal of a visa scheme, that drew Asian migrants in droves, could hurt Australia’s property market, but investors from the US and Europe could provide relief
But that dynamic is beginning to shift as agents warn that Canberra’s withdrawal of a golden visa scheme and plans to cap its migrant and foreign student intake are likely to impact home sales, particularly in the high-end segment.
The timing could not be worse for property owners, especially those who buy to rent, who are already doubting the sector’s prospects.
Li, the owner of a two-bedroom, two-bath home in Sydney, which her parents bought for her when she was a student at the University of New South Wales, could find it harder to look for tenants given the likely smaller pool of foreigners needing accommodation. The shrinkage of the tenant pool comes at a time of higher rental fees in Australia.
“Rental prices in Australia are fairly expensive, especially Sydney,” Li said.
