While the new proposed NSW surcharge on foreign property buyers is supposed to free up more housing for local first-time homebuyers, many real estate experts believe it would only hurt housing affordability and economy in NSW, reports the Australian Financial Review (24 May 2016). The end result would erode the competitive investment edge of NSW and lead to reduced construction of new homes, as foreign property investment in fact helps fund new developments – sometimes up to 15% of the total sales. "59.5 percent of those [Chinese international buyers] who make enquiries on Australian real estate are motivated by education. So if NSW makes investment conditions less favourable for foreign buyers, its education sector stands to lose revenue," said Juwai.com Head of Australia Gavin Norris.
