TY - JOUR
T1 - The Effect of Foreign Demand on Residential Property Prices: Evidence from Australia
AU - Wokker, Christopher
AU - Swieringa, John
PY - 2020
Y1 - 2020
N2 - 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.
AB - 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.
U2 - 10.1111/1467-8462.12346
DO - 10.1111/1467-8462.12346
M3 - Article
VL - 53
SP - 35
EP - 49
JO - The Australian Economic Review
JF - The Australian Economic Review
IS - 1
ER -