The causes of Australia’s ever-inflating housing bubble are many -- artificially low interest rates, government stimulus and a real-estate industry devoted to an ever-increasing house price to name but a few. However, a less well-publicised factor may also be at play, that is the influence of foreign buyers.

In December 2008, the federal government, whose primary goal appears to be maintaining property prices at unsustainably high levels, introduced legislation relaxing rules for foreign buyers of Australian property. The rules were especially helpful for property developers, who coincidentally happen to be large donors to the Labor party.