'Most active in five years': Why an expat-led boom is on the horizon for the prestige property market

An expat-led boom for the prestige property market?

That likelihood is shaping up nicely with a weak Australian dollar combined with the looming spectre of Brexit in the UK and the Trump factor in the US leading to a surge of summer inquiries from overseas Aussies wanting to buy back into their home market in the $4 million to $15 million range.

“This is the most active I’ve known the expat market in the last five years,” says agent Anthony Walls, of Max Walls International. “With the Australian dollar dropping well below 80 cents American, it means expats are effectively buying at a 30 per cent discount.”

Walls even recently had a Singapore-based client who bought without an inspection.

In Sydney, expat buyers are wanting to snap up properties in eastern suburbs areas such as Darling Point, Vaucluse, Rose Bay, Bellevue Hill, Paddington, Woollahra and Elizabeth Bay, says BradfieldCleary director Bob Guth.

“Many are looking for property they can rent out for several years with a view to coming back to live in it later,” he says. “Others, with the Australian dollar slipping so much … are looking for investment properties.”

In Melbourne, homes near good schools are expats’ main focus, particularly in South Yarra, Toorak, Brighton and Hawthorn, says Kay & Burton managing director Ross Savas.

“The level of interest is enormous and it will continue to grow,” he says. “The dollar has helped a lot of people wanting to come home.

“They see Melbourne and Sydney as the best places in the world without a shadow of a doubt, and want to bring their kids back for their education and to enjoy the lifestyle.”

Brad Pillinger, of Pillinger Double Bay says expats are finding our markets very affordable. “They’re helping keep the prestige market pumping along,” he says.

With more than 346,000 Australian expats, a large slice are now ready to return, argues James Nihill, of Patrick Leo, who has just met with clients in London.

“So many people in the UK are convinced the country’s going to implode post-Brexit and its housing market has stalled,” he says.

“And, even though they have to pay a 20 per cent deposit on homes if they’re not resident and it’s harder to get a bank loan, that’s not putting them off.”

Three prestige prizes

Darling Point

A magnificent harbour-front estate with a sleek, contemporary design, where 25 per cent of buyer interest is coming from overseas.

Clint Ballard of Ballard Property has the listing, which is being shopped around with a $70 million price guide.

South Yarra

A luxuriously appointed pad in the Domain precinct, with architecture by Rob Mills and gardens by Paul Bangay.

Marcus Chiminello of Marshal White Stonnington advises on a $4.195 million price guide.

Newport

A Richard Cole masterpiece completed in 2015, which features a floor-to-ceiling timber kitchen and panoramic views over the ocean.

David Eden of McGrath Avalon is selling the five-bedder.