According to new research based on data obtained under a Freedom of Information request by Hasan Tevfik and Peter Liu, research analysts at Credit Suisse, foreigners are buying property at an annualised rate of $8 billion per annum, equating to 25% of new supply in New South Wales and 16% in Victoria in the past 12 months….
… The bombshell figures suggest that, along with local investors, the level of foreign investor activity in the housing markets has been a significant driver of the price growth of recent years, and the overwhelming majority — a staggering 80% in NSW — is coming from China.
Chinese buyers are evidently not having any problem in finding money to pay for the purchases even though Australian banks are not extending credit and that there are alleged capital controls imposed by China.
Now, if Australia were to impose restrictions on Chinese buying of Australian property, it would be dubbed anti-globalisation and anti-foreigner. But, that would be a perfectly legitimate response because this additional demand is making homes unaffordable for Australians. Now, if ordinary Australians therefore vote for a politician who clamps down foreign ownership of Australian property, would he necessarily be a reckless and dangerous demagogue?
Would commentators argue that such real estate bubbles and unaffordability are necessary evils for keeping the world open? How many ordinary people would subscribe to such a philosophical stance? How many ‘philosophers’ would take such a stance if they were personally affected?