Australian authorities have ordered overseas buyers to sell 96 illegally purchased properties (Photo of the Daily Telegraph)
In spite of a sharp drop in overseas money flowing into Australia`s property market, the number of foreign investors in illegal home ownership has soared. In the past year, Australian authorities ordered illegal overseas buyers to sell residential properties worth nearly A $100 million.
According to the Daily Telegraph, the latest (FIRB) data released by Australia`s Foreign Investment Review Committee showed that in the year to June 2017, the number of illegal home purchases by overseas buyers reached 549 units, up from 260 units last year. Of these, 96 properties have been ordered to be sold for a total value of A $97 million. More than half of mandatory sales are in Victoria, while new states are forced to sell only 1 / 5.
Earlier, the media disclosed that Board of Taxation conducted a black economic survey and found that "some people brag about building houses in full cash." There is evidence that the money came from China, Singapore and United Arab Emirates..
While the number of homes ordered to be sold by foreign buyers illegally increased, the number of overseas buyers` home permits approved by Australia`s foreign investment review committee fell to its lowest level in recent years. The number of properties approved by overseas buyers fell from 40149 in FY2015 to 13198 in FY2016, with a total value of A $25.2 billion, down from A $72.4 billion in FY 2015.
Demand for overseas buyers also fell because of higher stamp duty rates for overseas buyers in New and Victoria.
Buyers from China are still leading Australian property investors overseas, followed by Canada, the United States, Singapore and Malaysia.
