Investment bank UBS research has identified that in the nine months to March this year $24.9 billion of foreign funds were spent buying residential accommodation in Australia, an increase of 93% over last year. This equates to one in eight homes now being purchased by foreigner. The majority are in Sydney and Melbourne.

Foreigners are allowed to buy newly built real estate but can only buy established housing if they hold temporary residence status and if the purchase is approved by the Foreign Investment Review Board. However not one case has been prosecuted where a non qualifying foreigner has bought an established home.

Current data indicates foreigners are buying 40% of all new housing stock. NSW and VIC each shared about 40% of the foreign purchases with QLD accounting for about 12% (total about 92%).
The “significant investor visa” program also provides a foreign investor permanent residency within four years if they make a $5 million investment in Australia.

RP Data-¬Rismark research shows Sydney and Melbourne house prices have jumped 15.4 per cent and 9.2 per cent over the past year respectively.