[fixed_truth]

NZ top China expert Rodney Jones:

In such a data void, it is natural that people look for informal data sets. While Phil Twyford's data set based on names created a storm, and is less than ideal given it is implicitly based on ethnicity, rather than residency or citizenship, it does provide a sense as to the extent of non-resident demand for Auckland property. This is consistent with what has been observed in property markets as varied as Singapore, Hong Kong and Vancouver.

Across the Asia-Pacific region the anecdotal evidence of demand for offshore property by Chinese residents is overwhelming. China is unique in financial history, in that combines a huge stock of financial assets with ill-defined property rights and a still evolving rule of law. This mix combines buying power with demand for assets with certain property rights, such as houses on freehold land. We have not seen this before, as typically foreign investment by individuals has been financial - equities, bonds and mutual funds.

To express concerns about the potential impact of these flows is not racism; it is sensible macro prudential management.