The Real Estate Institute of Australia is warning the federal government not to introduce tougher rules on foreign property investment, The Australian Financial Review reports.
The REIA said in a submission to the parliamentary inquiry into foreign investment in residential real estate that offshore interest was not coming at the expense of first home buyers.
The leading real estate industry body in the country also said the impact of offshore interest on prices had been over-hyped, while foreign buyer interest has aided supply of new housing.
“First home buyers are buying different stock to foreign investors,” REIA chief executive Amanda Lynch told the AFR.“The preference for first home buyers is very clearly existing housing. Foreign investors are buying new properties off the plan.”