Foreign buyers forced to sell property they bought in breach of Australia’s foreign investment rules accounts for a “shockingly small amount”, says CEO... Number of auctions continues to trend higher...
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Foreign buyers forced to sell property they bought in breach of Australia’s foreign investment rules accounts for a “shockingly small amount”, says Charles Pittar, CEO Chinese international property website, Juwai.com.
“Out of more than 2000 investigations of potential illegal home-buying since the process started, there have been only 61 forced sales. Just 3% of investigations find wrongdoing that forces divestment.
“The Foreign Investment Review Board has approved AU$343 billion property purchases since 2010, and in total only $140 million of investments have had to be divested. Divestments are equivalent to about four hundredths of one percent of the total value of approved investments.
Pittar compared it to tax evasion by Australians. “Meanwhile, the Australian Tax Office has estimated that 5% of wealthy Australians attempt to evade paying their taxes.
“When you look at them in context, you find that foreign investors behave extraordinarily well.
"We find the Chinese investors we work with to be eager to follow the rules. One reason they choose to buy in Australia is to live in a well-managed country. By choosing Australia, they are embracing all the rules and regulations that make it such a wonderful place."
Number of auctions continues to trend higher
The past week saw strong auction activity across the capital cities, with the number of auctions more than doubling compared with last week in Sydney and Melbourne.
Despite the surge in the number of auctions held, the combined capitals region recorded a preliminary auction clearance rate of 76.6%, up from last week, when the final clearance rate dipped to 68.7 per cent.
Auction volumes saw a significant increase over the week, with volumes rising week-on-week across all of the capital cities, with the exception of Adelaide which saw a decrease.
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“Out of more than 2000 investigations of potential illegal home-buying since the process started, there have been only 61 forced sales. Just 3% of investigations find wrongdoing that forces divestment.
“The Foreign Investment Review Board has approved AU$343 billion property purchases since 2010, and in total only $140 million of investments have had to be divested. Divestments are equivalent to about four hundredths of one percent of the total value of approved investments.
Pittar compared it to tax evasion by Australians. “Meanwhile, the Australian Tax Office has estimated that 5% of wealthy Australians attempt to evade paying their taxes.
“When you look at them in context, you find that foreign investors behave extraordinarily well.
"We find the Chinese investors we work with to be eager to follow the rules. One reason they choose to buy in Australia is to live in a well-managed country. By choosing Australia, they are embracing all the rules and regulations that make it such a wonderful place."
Number of auctions continues to trend higher
The past week saw strong auction activity across the capital cities, with the number of auctions more than doubling compared with last week in Sydney and Melbourne.
Despite the surge in the number of auctions held, the combined capitals region recorded a preliminary auction clearance rate of 76.6%, up from last week, when the final clearance rate dipped to 68.7 per cent.
Auction volumes saw a significant increase over the week, with volumes rising week-on-week across all of the capital cities, with the exception of Adelaide which saw a decrease.
Brokers on Banks: have your sayMPA's Brokers on Banks survey is open now and needs your help! For 14 years this survey has enabled you to score all of the banks on their performance, and give your views on key issues such as ASIC, channel conflict and commission. Take 5 minutes now to keep the banks honest, with the chance to win a pair of Bose QuietComfort® 25 Acoustic Noise Cancelling® headphones (RRP $399).
Closes 17th February - don't miss out!
