Australian property has long been the default investment for everyday people building wealth. Buy locally, hold long term, and rely on capital growth.

But new research suggests that default is being seriously questioned.

In the study published by Money.com.au, 30% of Australians are now considering buying property overseas . Among them, 14% intend to buy abroad as an investment while continuing to live in Australia. A further 8% are looking to live and work overseas, while another 8% are planning to retire abroad.

Read more: Aussies flee housing market for overseas property bargains (RealEstate.com.au)

It is a significant number, and it comes at a time when the domestic market is facing pressure from several directions at once.

Australian house prices have risen sharply over recent years.

According to PropTrack, Sydney’s median house price now sits at $1.557 million. Melbourne is at $875,000, while Brisbane has crossed the $1 million mark. Nationally, dwelling prices rose close to 10% in the past year alone and remain well above pre-Covid levels.

For investors already in the market, the returns tell their own story.

Gross residential yields across the country are sitting at around 3.7% to 3.8%. Once land tax, property management fees, insurance, maintenance, and vacancies are factored in, the net return for many landlords becomes negligible, and in some cases negative.

For years, the strategy has been supported by capital growth. But that model relies on rising values to do most of the heavy lifting.

Cost-of-living pressures are adding to the strain. Mortgage repayments, utilities, insurance, and everyday household costs have all increased, making it harder for investors to hold multiple properties or build new deposits without topping up from other income.

The investment case for residential property is also facing potential structural change at a policy level.

With the federal budget approaching, debate around negative gearing and capital gains tax concessions has intensified. Proposals include limiting negative gearing to new builds only, or capping it at two investment properties.

There is also renewed discussion around the 50% capital gains tax discount, which currently applies to assets held for more than 12 months and significantly reduces tax payable when an investment property is sold.

Any change to these settings would materially alter the economics of holding multiple residential investment properties.

For investors who built portfolios assuming current tax treatment would continue, uncertainty is now part of the equation.

Read more: Capital gains tax changes are on the table, and yet Armageddon has not arrived. Has the tide on housing turned at last? (The Guardian)

Against this backdrop, the Money.com.au research shows clear geographic preferences emerging.

New South Wales leads the trend, with 32% of residents open to purchasing overseas, the highest of any state. Victorians follow at 31%, while Queenslanders sit at the national average of 30%.

Asia is the dominant destination of interest. Victorians show the strongest pull toward the region, with 41% nominating Asia as their top choice, while Western Australians are close behind at 39%.

Adam Nelson, APAC Wealth & Strategy Director at Geonet, says the conversations he is having with clients reflect a growing reassessment of value.

“More Australians are starting to compare what their money buys locally versus overseas. In many cases, they’re seeing that the same capital which might only secure a heavily mortgaged asset in Australia can open the door to stronger-performing opportunities abroad.”

What makes this research notable is not just the number itself, although 30% is a large portion of the population to be considering overseas property.

It is what is driving it.

High prices and compressed yields are not new. But the combination of those factors with rising living costs, possible tax reform, and tighter returns creates a different kind of pressure. It feels less cyclical and more structural.

For the 14% of Australians who specifically want to invest overseas while continuing to live here, the question is increasingly not whether to look abroad, but where, and in what type of asset.

Nelson added:

“We’re also seeing confidence grow because people now know others who have made the move, invested overseas, or built wealth outside the traditional Australian property model. That makes the idea feel far more real and achievable.”

Southeast Asia, and Bali in particular, sits squarely within the region many Australians are already looking at.

It is geographically close, culturally familiar, and supported by strong tourism demand, growing infrastructure, and increasing access through professionally managed investment structures.

For many Australians, the appeal is not simply lower entry prices. It is also about diversification, stronger income potential, and exposure to markets outside the Australian residential cycle.

This is one reason hospitality and hotel investment has become a more widely discussed asset class. Unlike traditional residential property, professionally managed hotel assets can generate revenue through accommodation, food and beverage, wellness, events, and broader tourism activity.

Australians are not walking away from property. They are becoming more selective about where they place their capital.

For some, that still means domestic residential real estate. For others, it means broadening their outlook and considering opportunities beyond Australia’s borders.

Whether this trend becomes a long-term reallocation of capital remains to be seen. But one thing is clear: overseas property is no longer a niche conversation.

It is becoming part of the mainstream wealth creation discussion.