Australians priced out of property as chinese buyers pour in

Melbourne, Australia Photo: Andos_pics

Chinese buyers are investing £2.7 billion into Australia's housing market every year, according to Credit Suisse. As a result, property values are climbing. In Syndey, for example, the median house price has surged 45 per in the past five years, making the country's real estate some of the most expensive in the world.

While Australia's house prices are booming, though, local bank accounts are not: wages have not kept up with the increasing values, leaving domestic buyers unable to afford a home - and Chinese investors able to pick up the resulting supply.

They are buying up 18 per cent of new housing supplies in Sydney, says the Credit Suisse report, and 14 per cent in Melbourne. With Canada closing its Immigrant Investor Programme last month, the firm's analysts expect that trend to continue.

"We estimate the number will rise by 30 per cent by 2020," say the authors of the report (quote by the BBC). "This should support a further $44bn of Australian residential property purchases over the next seven years."

It may be bad news for house hunters, but Credit Suisse are looking on the bright side for businesses: "As long as Australia remains open for business, our companies should also benefit from the next stage China's economic development."