Reversal of foreign property ownership law changes
Australian property prices should benefit from a tightening of the rules.
A reversal of the relaxation of rules restricting foreign ownership of Australian property should ensure that prices are not forced up, according to an industry expert.
John Collett, writing for the Sydney Morning Herald, said the change was "welcome" as previous rules would have contributed to the housing affordability problem, particularly in Sydney and Melbourne.
"Should we be surprised that foreigners with children studying here look at the health of the Australian economy and the property price gains and want to buy in?" he stated, adding that the established market was not only opened to the parents of foreign students on temporary visas but to people such as foreign businessmen.
Furthermore, the government now states that temporary visa-holders have to sell their Australian property on leaving the country, a provision which was dropped a year ago.
However, according to Michael Turner, an economist at 4Cast, current Australian property approvals are showing that demand has not been dampened in the country.
Steve Douglas is the co-founder and Managing Director of Australian Taxation Services (ATS), established in Singapore in 1995.
ATS provides specialist taxation services to Australian expats living overseas and people of any nationality investing in Australian property.