Foreign buyers speculate on Australian real estate councilors who advocate severe punishment for illegal buyers
According to the Sydney Morning Herald on September 2014, 9, Kelly O'Dwyer, the coalition member responsible for investigating housing affordability, stated that the Australian Foreign Investment Review Board (FIRB) failed to enforce restrictions on foreign investment Real estate law.
Bloomberg News recently held a forum in Sydney. Oldville said on the forum that evidence obtained from a federal investigation showed that FIRB did not fully enforce laws restricting foreigners from purchasing real estate. According to the current law, foreigners cannot purchase existing properties without approval.
Oldville advocated that FIRB better enforce this law and implement more severe penalties.
The Coalition Party and the Labour Party jointly formed the investigation committee, with Oldville as the person in charge. They are considering changing the law to further restrict foreign investment in Australian real estate, including imitating Singapore to increase stamp duty or imposing FIRB approval fees. They will make a report in October this year.
Oldville said: "Under the current framework, we strongly encourage foreign investors to invest in new houses, because we see that this is of great benefit to our country, whether it is increasing the number of new houses or looking at economic results."
"However, we already have policies that restrict foreign investors from purchasing existing properties. The current evidence obtained by the committee shows that these restrictions have not been implemented," he added.
With the warmth of spring and the busiest season in the housing market, local communities are increasingly worried about being squeezed out of the Australian market by generous Chinese buyers. However, economists believe that Chinese are more inclined to buy high-density apartment buildings in urban areas, and for high-end real estate, American and British corporate buyers are no less interested than Chinese buyers.
According to data from the Australian Ministry of Finance, in the first nine months of the last fiscal year, the Australian real estate market attracted A$9 billion in foreign investment, an increase of 248% over the same period last year.
Oldville said: "So we are considering implementing a civil punishment system to punish those who violate the regulations."
The current penalty amount is A$8.5, and Oldville said that some investors think this is just a "cost of doing business." She advocated linking the penalty amount to the value of the property.
Sydney Morning Herald