NAB: International investors buy more new Vic homes than local investors in first three months of 2024

More foreign investors purchased a property in a new Victorian estate or development than local investors did in the first three months of 2024.

And with a report from the nation’s third biggest bank also showing the share of first-home buyers tackling new builds across the state is the lowest in the country at 22 per cent, there are signs pressure is rising on the city’s most affordably-priced homes going under the hammer.

The first NAB Residential Property Survey for 2024 found just 8.6 per cent of new home sales in the first three months of the year had been to investors, while 10 per cent had been to internationals.

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The share of new residence sales to first-home buyers fell from 31 per cent at the end of last year to 22.1 per cent by the end of March — the lowest share in the country. By contrast, first timers accounted for more than a third of established housing market sales in the same time frame.

Just 3.8 per cent of established homes sold in Victoria in the timeline went to international buyers.

The report also included a forecast from chief economist Alan Oster that Melbourne home prices will rise 2.5 per cent this year, while a 4 per cent lift in rents was his highest prediction for the country.

The increase in home values and rental costs reflect a broader view from 88 per cent of survey respondents that building in Victoria is too expensive.

Australian Bureau of Statistics data released last week shows the typical construction cost of a new house being approved in Victoria in April was $478,000.

But buyer demand is up, with brokerage firm Loan Market recently reporting a 90 per cent increase in pre-approvals year on year.

The increase is helping absorb higher than normal listings for the start of winter, with almost 1200 homes scheduled to go under the hammer around the state this week.

On Saturday, PropTrack recorded a 66 per cent clearance rate from 842 reported auction results.

But Ray White’s Victorian chief auctioneer Jeremy Tyrrell said his firm’s western suburbs offices, including Melton and Taylors Lakes, had notched a clearance rate of almost 90 per cent in the past week — while the wider agency sold about 75 per cent of homes slated for auction.

With many of the homes across the west auctioned within the $400,000-$600,000 price band, Mr Tyrrell said it was likely a sign of strong demand from first-home buyers for established homes rather than new builds.

He added that up to 50 per cent of their weekly auctions were being sold ahead of a planned sale date, which could also be a sign of first-home buyer demand as many were being advised by their lenders not to purchase at auction.

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