People coming from China to invest in the Australian property market are driving harder bargains than native buyers, according to a new report.
It had previously been believed that the way Chinese buyers spent meant that prices were rising all the time, pricing young Australian people out of the market.
However, the newest evidence suggests this is not the case, with the Finance Discipline Group at the University of Technology, Sydney, finding that people purchasing homes with traditional Chinese surnames pay some two per cent less on average.
“It’s win-win at the moment. We’re attracting foreign investment without causing prices to increase because of it,” he told The Australian.
Posted by Ravin Chatlani
It had previously been believed that the way Chinese buyers spent meant that prices were rising all the time, pricing young Australian people out of the market.
However, the newest evidence suggests this is not the case, with the Finance Discipline Group at the University of Technology, Sydney, finding that people purchasing homes with traditional Chinese surnames pay some two per cent less on average.
The study looked at a randomised list of over 74,000 sales in the city between 2000 and 2011 to draw conclusions, and researcher Lorenzo Casavecchia said it showed how much of a positive impact foreigners can have on the property market.
“It’s win-win at the moment. We’re attracting foreign investment without causing prices to increase because of it,” he told The Australian.
Posted by Ravin Chatlani
