3 percent for Europe housing investors. And they are more willing to pay a higher price for properties in locations with shorter cultural distance.1 percent or AUD7,382.However, Europeans came to Australia relatively earlier compared with Asian immigrants and their cultural difference is relatively smaller, so they are better adapted to the local Australian society and their ties to their countries of origin are weaker. Lee from the University of Technology Sydney.In other words, there is a negative relationship between cultural distance and housing price. The greater the cultural distance between a homebuyer and a neighborhood, the lower the housing price is in the transaction.Cultural distance sensitivity or home culture preference is weaker for more established ethnic groups than recent migrants, says Prof.
They are also willing to pay a price premium for properties in locations with shorter cultural distance. Their appetite for the countrys properties grows quickly.35 across all ethnic groups.According to Prof.It is worth noting that China has become one of the top sources of immigrants to Australia in recent years and there is a huge new wave of Chinese investment into the Australian property market.The StudyFor the purpose of the study, the researchers targeted Sydney, Australias largest and most culturally diverse city, China pure sine wave inverter Suppliers where immigrants have made up a large component of its population. Naturally, Australian investors have the lowest average cultural distance score of 1.We would like to find out in a city with diverse culture, whether the melting pot theory dominants or the salad bowl analogy holds true.
We document the natural occurrence of cultural and racial segregation through individuals housing investment decisions in Sydney.As such, their working paper Melting Pot or Salad Bowl: Cultural Distance and Housing Investments examined whether the cultural background of property investors and cultural differences of the neighborhoods influence their housing buying decisions, in terms of location and price.According to The New York Times, Chinese investment in Australian real estate has increased at least tenfold since 2010; Chinese investors have purchased up to half the new apartments in downtown Sydney.