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Foreign Investment in Residential Real Estate

Author

Listed:
  • Maurice Gauder

    (Reserve Bank of Australia)

  • Claire Houssard

    (Reserve Bank of Australia)

  • David Orsmond

    (Reserve Bank of Australia)

Abstract

The available data, while incomplete, suggest that for much of the past decade or so approvals granted for foreign investment in the residential sector have remained around 5–10 per cent of the value of dwelling turnover in Australia, and perhaps half that share of the total number of dwellings turned over. The actual level of foreign purchases of dwellings has been significantly lower. Foreign purchases appear to be most concentrated in new rather than established dwellings, in higher- rather than lower-priced dwellings, in medium- and high-density dwellings rather than detached dwellings, and in inner-city areas of Sydney and Melbourne rather than other locations.

Suggested Citation

  • Maurice Gauder & Claire Houssard & David Orsmond, 2014. "Foreign Investment in Residential Real Estate," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 11-18, June.
    • Handle: RePEc:rba:rbabul:jun2014-02
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2014/jun/pdf/bu-0614-2.pdf
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    References listed on IDEAS

    as
    1. Wing Hsieh & David Norman & David Orsmond, 2012. "Supply-side Issues in the Housing Sector," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 11-20, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Megan Nethercote, 2019. "Melbourne’s vertical expansion and the political economies of high-rise residential development," Urban Studies, Urban Studies Journal Limited, vol. 56(16), pages 3394-3414, December.
    2. Yin Germaschewski & Shu‐Ling Wang, 2021. "Distributional effects of nonresident investors on the housing market and welfare," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1300-1326, November.
    3. Filipa Sa, 2016. "The Effect of Foreign Investors on Local Housing Markets: Evidence from the UK," Discussion Papers 1639, Centre for Macroeconomics (CFM).
    4. David Orsmond, 2014. "The RBA’s Business Liaison Program," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 1-6, September.
    5. Benjamin Patrick Evans & Kirill Glavatskiy & Michael S. Harré & Mikhail Prokopenko, 2023. "The impact of social influence in Australian real estate: market forecasting with a spatial agent-based model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(1), pages 5-57, January.
    6. Sá, Filipa, 2016. "The Effect of Foreign Investors on Local Housing Markets: Evidence from the UK," CEPR Discussion Papers 11658, C.E.P.R. Discussion Papers.
    7. Dallas Rogers & Chyi Lin Lee & Ding Yan, 2015. "The Politics of Foreign Investment in Australian Housing: Chinese Investors, Translocal Sales Agents and Local Resistance," Housing Studies, Taylor & Francis Journals, vol. 30(5), pages 730-748, July.
    8. Ross Guest & Nicholas Rohde, 2017. "The Contribution of Foreign Real Estate Investment to Housing Price Growth in Australian Capital Cities," Abacus, Accounting Foundation, University of Sydney, vol. 53(3), pages 304-318, September.
    9. IKM Mokhtarul Wadud & Omar H. M. N. Bashar & Huson Joher Ali Ahmed & William Dimovski, 2022. "Property price dynamics and asymmetric effects of economic policy uncertainty: New evidence from the Australian capital cities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4359-4380, December.
    10. Alkan Gökler, Leyla, 2021. "Foreign demand and high-rise luxury housing projects in two Turkish cities: Ankara and Trabzon," Land Use Policy, Elsevier, vol. 103(C).

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