Of course that is possible that 126,000 Chinese Aucklanders bought the 1500 or so houses in this data set. But it is plausible given these data?
First, Chinese Aucklanders tend to be young, and tend to have low incomes. While the ethnically Chinese population makes up 9% of Aucklanders, it makes up only 5% of Aucklanders on high incomes.
Second, the leaked data show that the ethnically Chinese house buyers tended to purchase flash houses. While ethnically Chinese buyers made up 39.5% of all sales, they made up over 49% of all sales worth over $1 million. That is another striking discrepancy.
This explanation now requires a small, relatively low income percentage of the population to be buying a very large percentage of the most expensive houses. At face value, that sounds unlikely
Well, we have a good comparison case to test this idea: the ethnically Indian population in Auckland. It has 8% of the population, 6% of the high-earning population, and it is growing even more quickly than the ethnic Chinese population, including through immigration at similar rates. That means the Indian population is subject to similar dynamics of incoming capital for new residents, and has the same need to find new places to live.
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