A government committee in Australia is set to examine laws governing foreign investment of property.
The move follows a report by investment giant 2.7bn) into Australia’s residential market every year, pushing up prices.
The investigation will examine whether foreign purchasing policies are pricing Australians out of the market.
Australia has some of the most expensive property markets globally.
“We know that the great Australian dream is to own your own home,” chairman of the House of Representatives Standing Committee on Economics Kelly O’Dwyer told the Australian Broadcasting Corporation’s Radio National programme on Monday.
“And we know that that’s pretty difficult – even with two incomes and lots of years of savings and a large mortgage.
“So we want to make sure that we’re not making it even more difficult,” she said.
The investment report into the Australian property market by Credit Suisse analysts was published earlier this month.
It showed that a generation of Australians are being priced out of the housing market, leaving many facing a “lifetime of renting”.
Most foreign buyers are limited to buying newly available homes in the country, which is a policy that was intended to benefit local construction businesses and see more jobs added to the sector.
The hope was that it would also push up the number of homes available for occupancy.
Ms O’Dwyer told ABC Radio that the investigation would look at all aspects of the policy – but that a focus would be whether or not apartments were being occupied.
She said the committee would investigate all the evidence available.
“We want to know though whether or not the current laws and the current framework is being properly adhered to and whether it is a truly distorting impact,” she added.
åœ¨æ¾³æ´²æ”¿åºœé™åˆ¶å¤–å›½æŠ•èµ„æ”¿ç–å‡ºå°å‰ï¼Œæ²¡å…¥å¸‚çš„èµ¶ç´§å…¥ä¸–ï¼Œèµ¶ä¸Šæœ€åŽçš„æœ«çè½¦ï¼(For all Chinese get in quick before Australia shuts the door on your face!)
Credit Suisse has estimated the scale of Chinese demand for Aussie property and “forecast Chinese buying power will increase as the economy develops and the population becomes wealthier. They purchased $24bn of Australian housing over the past seven years; we forecast they will purchase $44bn over the next seven, to 2020.â€
Itâ€™s already one of the key driving forces behind the AustralianÂ property come back (though itâ€™s important to remember itâ€™s not the only one!).