It's no surprise that the Chinese buyers have started to feel the pinch of rising prices in the traditional markets of Sydney, Vancouver and Hong Kong - each of these jurisdictions have recently applied a surcharge tax for foreign investors in residential property.
Whether this is to deal with the public backlash on rising prices or simply to replace other forms of lost revenue is a matter of opinion - the proof will be in what use the additional funds get put to.
Australia needs to remain competitive in the race for global capital, with the growing wave of Chinese investors prepared to look further afield and wanting more bang for their buck.
Motivated by a weakening yuan, surging domestic housing costs and the desire to secure offshore footholds, Chinese citizens are snapping up overseas homes at an accelerating pace. They’re also venturing further afield than ever before, spreading beyond the likes of Sydney and Vancouver to lower-priced markets including Houston, Thailand and Malaysia. The buying spree has defied Chinese government efforts to restrict capital outflows and shows little sign of slowing after an estimated $15 billion of overseas real estate purchases in the first half. For cities in the cross-hairs, the challenge is to balance the economic benefits of Chinese demand against the risk that rising home prices spur a public backlash.