Chinese property investors have been flocking to Australia and spending billions of dollars in local real estate.

Around AU $6 billion or US $5.42 billion have been invested by Chinese buyers into the real estate market last year.  This places Australia as among the top destinations for Chinese real estate investors.

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Although Chinese spending has focused on new local homes, Australian lawmakers are wary that the spending spree might push up the market prices of property for the locals.

Chinese nationals are estimated by some financial institutions to have bought around 12 percent of the country's new homes, according to the Australian Broadcasting Corporation (ABC).

Australian lawmakers are reviewing its foreign investment laws to make sure that foreign investments are not hurting the locals by pushing up property market prices and that overseas money adds to Australia's housing stock.

Credit Suisse has forecasted that China will have bought 18 percent of the new Sydney homes by 2020 and 14 percent of the Melbourne homes.

China is expected to pour in up to AU $44 billion (US $39.7 billion) of property investment in the next 7 years to 2020, Credit Suisse said.