Offshore property is shifting from a niche idea to a mainstream option for Australian borrowers, as affordability pressures push more clients to look beyond the local market.
New research from Money.com.au shows 30% of Australians are considering buying property overseas, with nearly one in seven planning to hold an investment offshore while continuing to live and work here, news.com.au reported.
New South Wales and Victoria are leading the trend, while Queensland sits close to the national average at 30%, with buyers particularly drawn to nearby destinations such as New Zealand and the Pacific.
Affordability gap widens between Australia and key destinations
Money.com.au property expert Nick Burgess (pictured) says “younger Aussies, in particular, are beginning to question whether they are priced out of the local market” and are comparing what their money can buy offshore versus at home.
EMBED: 04 27 Who wants to buy
In many popular locations in Europe and Southeast Asia, Burgess notes, it is possible to buy with far less debt, or even debt-free, than in Australia.
Recent price gains have sharpened that gap. PropTrack data show a typical house in Sydney now costs about $1.557 million, with Brisbane at $1.05 million and Adelaide at $920,000.
Commonwealth Bank senior economist Trent Saunders says national dwelling prices have risen close to 10% over the past year and are around 55% above pre‑COVID levels, driven by strong population growth and a persistent housing supply shortfall.
In contrast, New Zealand’s national property values are down 17.6% from their early 2022 peak, giving some Australians a sense they may be buying closer to the bottom of the Kiwi cycle than the top of the Australian one, Central Otago buyer and economist Dimity Pascoe told the Courier Mail.
For first-home buyers struggling to qualify under current serviceability tests and mortgage rates, purchasing a cheaper property offshore as a first step on the ladder is becoming more attractive. At the same time, some property investors are weighing higher-yield, lower-cost markets abroad against heavily taxed and highly priced Australian assets.
Clients are also reassessing lifestyle risk. Case studies in the research highlight Australians moving to Dubai, Japan, and Bali in search of lower housing costs, better amenities, and perceived value.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
