Still think foreigners aren’t juicing house prices?

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By Leith van Onselen

Earlier this week, the ANZ-Property Council December quarter survey was released, which confirmed what many of us already know: that demand from foreign nationals is forcing-up prices, thereby helping to price-out young Australians from home ownership.

The money chart is the one below, which shows a very strong correlation between the percentage of total sales to foreign buyers and house price growth:

ScreenHunter_9659 Oct. 09 10.03

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.