Australia’s lost generation priced out of housing
The average Sydney house price has risen by 45% in the past five years, while incomes are not keeping up.
Prices are being inflated by wealthy Chinese investors, who are pouring £2.7bn into the residential market every year.
The cities of Sydney and Melbourne, which are among the most expensive in the world, are the most popular destinations for Chinese buyers.
They are buying up 18% of new housing supply in Sydney and 14% in Melbourne, with this trend expected to continue.
The report’s Sydney based authors said: “We estimate the number will rise by 30% by 2020. This should support a further $44bn of Australian residential property purchases over the next seven years.
“As long as Australia remains open for business, our companies should also benefit from the next stage China’s economic development.”
The investment report combines information from the Australian Foreign Investment Review Board, the Australian Department of Immigration and the Australian Bureau of Statistics.