The approach of the current Government is in encouraging foreign investment because it believes it aligns with Australian community interests. Though it’s not a case of ‘open slather’ where foreign nationals can acquire any real estate in Australia, though there are many options open to them and the only sensitive area lies in the acquisition of developed residential real estate.
Despite the multi-cultural basis of Australian society, Australians are still very sensitive about foreigners buying the house or the unit next to their own home and so the purchase of property in this area is carefully monitored and controlled by the Australian Government.
The Australian Foreign Investment Guidelines confirm that a foreign person wishing to acquire real estate in Australia must seek prior approval from the Government through the Foreign Investment Review Board (FIRB) unless a specific exemption exists under the guidelines.
Last month, a Hong Kong holding company directed by business woman Margaret Ma Lou quietly set an Australian record when it paid $19.36 million for the sub-penthouse. The extravagant price tag bought 900 square meters in a building that boasts its own cinema, round-the-clock concierge and 25-metre lap pool, which is provided by the Bank of China.
The sale made Australia’s property market grow and gave reason for real estate agents to allow foreign buyers to purchase houses in the area. Real estate agents and current affairs programs have been focused for months on the plight of Australians high price of the housing market for the buyers from overseas.
