Does Chinese demand really boost Adelaide?

We keep reading articles in our local/national press quoting real estate agents saying Chinese investors are buying up houses in our eastern suburbs, supporting growth in this area. Although this sounds very positive and upbeat, it is not very accurate.

Australia has rules governing foreign investment which exist in the Foreign Acquisitions and Takeovers Act 1975. Generally foreign nationals cannot buy second hand or established houses and apartments, although there are some exceptions, including permanent residents, spouses of Australian citizens, and temporary residents such as international students who can buy established homes as their principal place of residence. The bulk of overseas property investors are therefore restricted to buying 'brand new' properties, usually in recently developed apartment buildings.

So it is doubtful that there is a massive demand for established eastern suburb houses from Chinese investors, when in most cases it would not be permitted under foreign investment laws. We think that the stories may be an attempt at manufacturing confidence in order to get a listing, rather than based in reality.