CANBERRA: Australians have reported about 40 foreigners who appear to have breached residential real estate investment laws, says the Government.
The rules were tightened earlier this year in the face of soaring property prices, especially in Sydney.
Treasurer Joe Hockey said the government now was investigating 195 residential real estate purchases by overseas investors.
He warned other investors they should report themselves if necessary. “Foreign investors who think they may have broken the rules should come to us before we come to them,” he said.
Foreigners must receive approval before buying established homes but can invest in new housing developments.
Under the new rules, application fees apply for residential purchases by foreigners while tougher criminal penalties apply for people who break the rules.
Mr Hockey said foreigners who come forward ahead of a November 30 amnesty deadline would be forced to sell their properties but would not be prosecuted.
Of the 195 cases being investigated so far, 24 were foreign investors who had voluntarily come forward, he said.
“Another 40 cases relate to referrals from the community where members of the public suspect foreign investors may have broken the rules by using complex structures and illegal leasing arrangements to hide foreign ownership.
“We want Australia to have more housing stock and foreign investment does help in that regard but not in regard to existing housing,” he said at a press conference.
However, the treasurer watered down concern that Sydney is facing a housing bubble that could soon burst, noting that demand for housing still outpaced supply.
