It's illegal in Australia for foreigners to buy existing homes though, so what they buy are off-the-plan units, and (from what I can tell) significantly (double-digit percentages) overpriced compared to existing stock, or even smaller developments that don't cater to foreigners as explicitly. Many of them seem to be bought to rent out, with the idea of living in them 'occasionally' or 'sometime'. I wonder how many of these investments make financial sense. (then again, just for portfolio diversification it's worth even paying for, maybe that's where the price excess comes from).
It's an interesting economic dynamic, in-explainable with orthodox theory, it's really about the circumstances. Which makes it difficult to analyze and model, too.
It's an interesting economic dynamic, in-explainable with orthodox theory, it's really about the circumstances. Which makes it difficult to analyze and model, too.