Vietnamese Investment in Australian Housing on the Rise

Deborah Wiltshire, sales director at leading Australian property developer The Gurner Group, highlighted a significant trend at a recent seminar in HCMC. According to data from Australia’s Foreign Investment Review Board, foreigners purchased 5,360 residential properties for approximately A$4.9 billion (US$3.1 billion) in 2022-23.

Increasing Popularity Among Vietnamese Buyers

The number of properties acquired by Vietnamese buyers saw a 15% increase during this period, accounting for 8-10% of all off-the-plan apartment purchases. Notably, in Victoria, a preferred destination for Vietnamese international students, apartment sales to Vietnamese buyers rose by 10-12% year-on-year in 2024, with units priced between US$800,000-1.2 million being particularly sought after.

Driving Factors Behind the Investment Boom

A CBRE report sheds light on the motives behind Vietnamese investments in Australian real estate: 60% for accommodation and education, 30% for investment, and 10% for migration purposes. Melbourne, Victoria’s capital, stands out as the most attractive city for foreign buyers, thanks to its urbanization, robust economy, and cultural diversity.

Future Projections and Challenges

Michael Paproth of The Gurner Group forecasts Australia’s population to grow by 1.8% annually over the next five years, surpassing other developed economies. However, the housing supply isn’t keeping pace, with Melbourne expected to face a shortage of around 28,000 apartments by 2028. Additionally, housing prices are anticipated to surge post-2026, following the expiration of Victoria’s land transfer duty concession.

Regulatory Landscape

Foreigners are barred from purchasing existing properties in Australia, with off-the-plan purchases subject to a 10% tax—a rate significantly lower than in countries like Singapore. Meanwhile, Vietnam’s growing high-net-worth population, with 5,500 individuals worth over $10 million in 2024, signals a continued rise in demand for foreign properties.