A recent survey by the University of Technology Sydney has found that 82% of Australians believe Chinese investors are driving up housing prices, despite data showing foreign investment has fallen to record lows. The survey, conducted between March and April 2021, polled 2,000 people and revealed a significant disconnect between public perception and statistical evidence.
House prices in Australia have surged over the past year, with Sydney recording an 8.5% rise in the first quarter of 2021 and capital city prices increasing by 10% annually. However, analysts attribute this to domestic demand and record-low interest rates rather than foreign buyers. CoreLogic's Eliza Owen noted that foreign investment hit a record low in March 2021, with National Australia Bank data showing foreign buyers accounted for only 3.7% of new home sales and 2.2% of established homes.
The survey also found that 69% of respondents agreed Chinese investors have made it harder for first-home buyers to enter the market, and 78% supported restricting Chinese investment, despite existing restrictions on all foreign investors. Non-residents are already prohibited from buying existing homes unless they redevelop the property to increase housing stock.
Lead author Elena Collinson suggested that sensationalist media headlines have fuelled these misconceptions, with persistent stories about 'cashed-up' Chinese investors 'swarming' Australia. She noted that the disconnect was unsurprising given the emotive nature of the issue, but added that younger people and those who did not vote for the Coalition were less likely to hold these views.
Owen emphasised that the current housing upswing is driven by low interest rates, high owner-occupier demand, and low supply, not foreign investment. She pointed out that migrant arrivals have been at record lows since the onset of Covid-19, further undermining the claim that Chinese investors are to blame.
