So, while it seems likely that foreign residential purchases have added somewhat to net housing demand in Australia, there is no way of knowing the exact extent to which this has been the case. Whether an increase in net housing demand – be it from foreign or domestic sources – leads to higher housing prices depends on the responsiveness of supply.
This subject has been  1  See RBA (2014), “Submission to the Inquiry into Foreign Investment in Residential Real Estate”, 9 May. 2  See Gauder M, C Houssard and D Orsmond (2014), “Foreign Investment in Residential Real Estate”, RBA Bulletin, June, pp 11–18.