PHOTO: Who buys property in Australia? ABC

Despite experiencing the most rapid rise in interest rates in recent history, house prices are once again on the rise across most of the country. This surge has left many wondering where the funds are coming from to support these purchases, especially when borrowing capacity has been reduced for most households seeking home loans.

Real estate agents and mortgage brokers have observed that the increased buying interest stems from various sources. Firstly, retirees looking to downsize and first home buyers are benefiting from support from their families, affectionately dubbed ‘the bank of mum and dad’. These familial contributions are enabling them to enter the property market despite the challenging borrowing conditions.

Additionally, there has been a noticeable surge in inquiries from overseas buyers, particularly from China, Hong Kong, and India. It appears that international investors are also playing a significant role in driving the market up. Moreover, there is a growing demand from cashed-up migrants moving to Australia on business visas, who are using their wealth to purchase properties locally.

Even though some economists predict further interest rate increases, real estate agents assert that this group of purchasers remains undeterred. Many of them are utilizing cash reserves rather than relying on home loans to make property acquisitions, making them less sensitive to interest rate fluctuations.

In summary, despite the challenging economic conditions, the housing market is witnessing a robust revival due to a mix of factors such as familial support, overseas investors, and cash-rich migrants. As these dynamics continue to shape the market, it remains to be seen how sustainable the current growth trend will be.