A five-bedroom Californian bungalow home in Melbourne's Canterbury sold over the weekend at a very competitive auction.
With an initial price guide of $3.6 million to $3.9 million, more than 100 people turned up to the auction.
But the winning bid came from an international student who was bidding on behalf of his parents who were looking to move to Australia at some point in the future.
“He was confident in his bidding and stayed in control,” listing agent and director at Woodards Blackburn, Julian Badenach told realestate.com.au.
“The family had an interest in getting a good property in the area and to move here themselves, they didn’t say if they would be moving straight away so it was important the house was in good condition.”
Badenach said the potential buyers were seeking land for a luxury new home.
Do foreign investors really put pressure on property prices?
Many Australians have a perception that Chinese investment in the Australian residential property market is affecting property prices , a UTS study found despite only accounting for 4.6 per cent of the market.
The study found a clear majority of Australians (82 per cent) felt foreign buyers from China drove up Australian housing prices.
Around seven in 10 Australians (69 per cent) said Chinese investors in Australian real estate had made it difficult for first home buyers in Australia to enter the market.
The same number of those surveyed also felt Chinese investors had negatively affected the rental market for residential real estate in Australia.
The majority of Australians (78 per cent) believed the Government should restrict the amount of Chinese investment in residential real estate.
“Foreign buyers in Australian housing markets remain subdued and well below average,” the survey said.
Property professionals identified price levels and a lack of stock as the biggest impediments for buyers of existing property - nationally and in all states - according to the NAB survey.
Essentially, Australia just doesn’t have enough homes to sell to keep up with our rising population and demand.
On top of that, concerns over rising rates were impacting buyers of existing housing more than at any time over the past three years, NAB reported.