Assuming the recommendations of the Parliamentary Committee on foreign property purchases are followed by the Government, which seems likely given Abbott needs a lift and Liberal rising star Kelly O’Dwyer ran the inquiry, what impact will the greater transparency have on the property market?
One way to look at this is to examine the market dimensions of the trade.
If a Chinese investor is buying Australian real estate but remains in China then the critical calculation is the value of the property in Chinese yuan. Here is the chart comparing the AUD/CNY and house prices over the past two decades:
