"Currently the Chinese are spending about $3 billion a year buying apartments in Sydney and, to a lesser extent, in Melbourne. Without Chinese buying, apartment prices would fall ..."
How does that fit within the mandate of the FIRB?
"The Government seeks to ensure that foreign investment in residential real estate increases the supply of dwellings and is not speculative in nature. The policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (that is, new developments such as house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers.
The effect of the more restrictive policy measures on developed residential real estate is twofold. Firstly, it helps reduce the possibility of excess demand building up in the existing housing market. Secondly, it aims to encourage the supply of new dwellings, many of which would become available to Australian residents, either for purchase or rent. The cumulative effect should be to maintain greater stability of house prices and the affordability of housing for the benefit of Australian residents." http://www.firb.gov.au/content/real_estate/residential.asp
