The Effect of Foreign Demand on Residential Property Prices: Evidence from Australia

Christopher Wokker, John Swieringa

    Research output: Contribution to journalArticle

    Abstract

    This study estimates the impact of foreign demand for Australian residential real estate on property prices. Using postcode-level administrative data and fixed-effects regression techniques we find a positive relationship between foreign investment approvals and price growth. Our analysis suggests that, on average, foreign investment contributed between $80 and $122 to quarterly price growth in Sydney and Melbourne between July 2010 and March 2015. This is a small proportion of the increase in property prices over the period.
    Original languageEnglish
    Pages (from-to)35-49
    JournalThe Australian Economic Review
    Volume53
    Issue number1
    DOIs
    Publication statusPublished - 2020

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