Australia will tighten rules on foreign investment in real estate, and introduce penalties to enforce the changes, to ensure pressure isn't placed on housing availability for local residents.
Temporary residents will require approval from the Foreign Investment Review Board to buy property, and will have to sell when leaving the country.
It ensures working families are not being priced out of their own family homes, Prime Minister Kevin Rudd said in Canberra yesterday.
Treasurer Wayne Swan eased restrictions on non-residents in late 2008, making it easier for foreigners to buy property without government approval.
House prices advanced more than 10 per cent last year and were among reasons the Reserve Bank of Australia boosted the benchmark interest rate again this month.
"Given that our national housing undersupply is reaching 200,000 homes, we should welcome any investment by foreign residents or businesses in boosting our supply of newly built homes, " said Aaron Gadiel, chief executive of Urban Taskforce Australia.
- BLOOMBERG
Aust tightening up on foreign housing investment
Photo/ Matthew Field
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