A recent decision by the Canadian government to drop a 28-year-old visa scheme for foreign investors could be beneficial to Australian house prices, Fairfax Media reports.
The move was made amid fears Chinese buyers were artificially inflating house prices in the North American country and Tyndall Asset Management’s head of fixed income, Roger Bridges, believes more Chinese investors will now look to Australia.
As a result the bond strategist has the local housing market on a list of “low probability, high impact” events to keep an eye on, Fairfax reported.
The news follows a report from the real estate advisory arm of Korda Mentha that revealed the Australian government’s significant investment visa scheme had attracted $440 million of investment in the local economy by Chinese investors.