The Foreign Investment Review Board has forced just 17 overseas investors to sell illegally acquired property since 2003 amid a broader boom that many contend has artificially inflated local house prices, The Australian reports.
The new statistics, revealed by a parliamentary committee, suggest that regulation of foreign property buying is riddled with loopholes as overseas investors have reportedly acquired almost 30,000 homes worth over $23 billion during the same period.
The parliamentary inquiry has found a flouting of rules designed to limit offshore property purchases, with calls for more resources to tackle the issue.
“There’s a clear need for greater resourcing for the FIRB to ensure that rules are being enforced so that people can have confidence in the system,’’ Labor MP Pat Conroy said, according to The Australian.
The committee, led by Liberal MP Kelly O’Dwyer, is likely to recommend offshore buyers be forced to pay a fee to apply for FIRB permission to purchase local real estate and will push for improved collection of data around home ownership.