Australians Overwhelmingly Support Crackdown on Chinese Real Estate Investment Amid Housing Affordability Concerns
A new survey reveals that Australians strongly support limiting Chinese investment in the country’s real estate market due to growing concerns over housing affordability. According to a poll published by the University of Technology Sydney’s Australia-China Relations Institute (UTS), 83% of Australians believe the government should restrict the amount of investment in residential real estate by Chinese investors. This marks the highest level of support for such restrictions in the four years the survey has been conducted.
Survey Highlights:
- Public Opinion on Investment: The survey of 2015 Australian adults covered various topics including national security, tourism, trade, and investment. Only 28% agreed that Chinese investment in residential real estate brings significant benefits, such as housing construction, new dwellings, and jobs. This agreement has steadily decreased over the past four years.
- Housing Price Impact: A clear majority, 80%, believe that foreign buyers from China drive up Australian housing prices, up from 73% in 2023 and nearly back to the 82% high recorded in 2021.
- Rental Market Concerns: 74% said Chinese investors negatively affect the rental market for residential real estate, marking a four-year high and a six-point increase from 68% in 2023.
- Economic Dependence: Nearly three-quarters of respondents feel Australia is too economically reliant on China, and just over half see Chinese foreign investment as more detrimental than beneficial.
David Ho, co-founder and group managing director of Asian property portal Juwai IQI, acknowledged the findings, noting that Australians are stressed by the tight property market and view foreign buyers as part of the problem. Ho pointed out that foreign buyers are already heavily taxed, regulated, and restricted, and highlighted the complexity of the real solutions, such as limiting population growth, reducing zoning restrictions, expanding transit networks, and lowering construction costs.
Impact of Chinese Investors:
- Foreign Buyer Restrictions: The federal government has long restricted foreign buyers to new properties only, imposing additional stamp duties and land taxes. Despite these measures, Chinese investors remain the largest foreign buyers of Australian homes, with $700 million worth of investment proposals approved between July and September 2023.
- Developer Dependency: Studies indicate that foreign buyers are crucial for developers, enabling the construction of new dwellings by providing early sales necessary for starting projects. Removing foreign buyers could lead to higher prices and rents.
- Distressed Sales: The economic downturn in China and rising interest rates have led to a rise in distressed Chinese sellers looking to offload properties in Australia.
The debate around foreign investment in Australian real estate has intensified, with parallels drawn to Canada’s recent two-year ban on foreigners buying residential property. Australian regulations allow non-citizens and non-permanent residents to purchase new homes, theoretically boosting housing construction.
Prime Minister’s Statement:
During a meeting with China’s Premier Li Qiang, Prime Minister Anthony Albanese emphasised that Australia and China will “co-operate where we can and disagree where we must.” Premier Li expressed that China-Australia relations are “back on track” and emphasised the importance of seeking common ground while managing differences.
The survey results underscore a significant public sentiment against Chinese real estate investment in Australia, driven by concerns over housing affordability and economic dependence. As the government navigates these issues, balancing foreign investment with domestic housing needs remains a critical challenge.
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