realestatebusiness logo
Subscribe to our newsletter SIGN UP

Fallout continues from foreign buyer reforms

09 March 2015 Staff Reporter

Overseas buyers have been forecast to keep snapping up property despite the federal government’s recent crackdown on foreign investors.

The federal government recently proposed to tighten the foreign investment regime by introducing application fees and stiff penalties for illegal purchases.

However, Mal James of James Buyer Advocates said the reforms would have no impact on wealthy buyers, and some Melbourne agencies are now selling up to 75 per cent of their properties to foreigners.

“Do you really think a $10,000 or $20,000 fee is going to bother a Chinese buyer of a $3 million or $4 million home?” he said.


Mr James said the surge in foreign investment has had serious ramifications for local buyers, from first home buyers to seasoned buyers.

“In many cases, we are seeing local buyers almost giving up because the market has changed so dramatically,” he said.

Meanwhile, First National Real Estate chief executive Ray Ellis said the government’s proposed foreign investment reforms had raised false concerns in New Zealand.

“As the Australian dollar falls, more New Zealand citizens are exploring opportunities to invest in Australian real estate, but some are concerned that proposals to increase compliance requirements for foreign investors might affect them as well,” Mr Ellis said.

“Australian and New Zealand citizens have long bought property on both sides of the Tasman.

“The government's policy is that New Zealand citizens are exempt from applying for Foreign Investment Review Board approval when purchasing Australian residential property.”

[Related: Govt claims massive scalp in foreign buyer crackdown]

Fallout continues from foreign buyer reforms
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Are you considering offering a flat fee model in 2019?

Perhaps, but it would include a performance bonus on making the sale.
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.