A senior Turnbull government minister has dismissed concerns that Chinese nationals buying real estate are pushing up house prices, also claiming some Australians confuse buyers with Asian backgrounds for overseas investors.

Speaking on Sky News, Trade Minister Steve Ciobo told Australians concerned about overseas investment in the residential property market that some Chinese buyers were not foreign nationals, but rather Chinese born-Australians or immigrants.

"There are so many examples where I have been told stories where people say: 'You know what, I saw Chinese buying real estate here in Australia'," he said.

"But you know what? They're Chinese-Australian.