Finder makes money from featured partners, but editorial opinions are our own.

Foreign investors forecasted to abandon apartment market


coin graph down1The number of new apartments purchased by foreign buyers is tipped to halve.

Master Builders Australia’s (MBA) Industry Forecasts report for the June quarter has predicted that foreign investment in apartments will be set to fall from a peak of 48,251 in June last year to 23,304 in June 2019, the Australian Financial Review (AFR) has reported. According to MBA, foreign investment is set to take a hit as new levies take hold and banks cut back on their lending to foreign buyers.

"Foreign investor activity is expected to fall considerably in the next two years as recent moves by the Commonwealth government and by the NSW state government tighten restrictions on foreign property buyers," the MBA report said.

While MBA has forecast a decline in foreign investment in detached housing as well, the drop in apartment investment is set to be more dramatic, the AFR reported.

Downward trend for home approvals "locked in"

The group has also predicted a drop of nearly 40% in the number of apartments being constructed in New South Wales. Higher prices and a reliance on investors is set to make the NSW market the country’s hardest hit by a slowdown in commencements.

The MBA has forecast a 44.3% decline for foreign-funded housing starts and a 23% decline for total new housing starts. However, foreign-funded detached housing commencements are set to begin recovering in 2019, the MBA has predicted.

Image: Shutterstock

Find the right home loan now

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site