Australia petitions against foreign investors

Photo credit: 8LettersUK

Foreign investment has been a much-debated topic in Australia's property market this year, as rising overseas interest from Asian countries has been linked to climbing house prices.

Some have argued that the rising prices are the result of low property supply rather than overseas investment.

“The information available suggests that foreign residential purchases have probably not had a large direct effect on the price of housing that is typically purchased by first home buyers,” Reserve Bank of Australia assistant governor Christopher Kent said earlier this year, launching an inquiry into the issue.

"Foreign residential demand in Australia is linked to the rise in income and wealth globally, but particularly in Asia, which is adding to business opportunities as our economy becomes more integrated with others in the region. This is welcome and to be expected."

Now, though, a petition on Change.org calling for Australia to be stricter in its regulation of foreign property investment has reached almost 33,000 supporters.

The petition follows the findings of the Parliamentary Inquiry on Foreign Buyers, which consulted with state governments to introduce a national property owners register, as well as potential raising penalties against foreigners who break ownership rules so that the charges are proportional to the cost of the property.

"The largest penalty fee that can be imposed is about $85,000. We have been told by many witnesses that that is simply seen as the cost of doing business," Coalition MP Kelly O'Dwyer said in Octoberr.