Backflip: Change to Foreign Ownership Laws for Australian Homes

The Federal Government made a significant policy back-flip on the weekend following the uproar developing in the media and reported here, regarding the relaxation of laws for foreign investment in Australian real estate. The situation was changed to allow overseas TR holders buy property without the need for the Foreign Investment Review Board approving the purchase. Since the government made no efforts to record how many houses have since been sold following this policy, the effect cannot be measured but house prices have gone up around $75,000 in some areas in the meantime. 


Under the new rule, temporary residents would be screened by Foreign Investment Review Board to buy a property and must sell their property when they leave Australia. If they purchase vacant land, they must build on that vacant land within 24 months or sell it.

The rules are backed by stiff new penalties including compulsory sell orders, as well as expanded monitoring and a crackdown on real estate agents who help foreigners flout the rules. 

The Prime Minister said "We want to make sure that Australian working families are not being priced out of their own family homes. That is why we have acted in the way in which we have done. We want to make sure that foreign speculators are not going to force up prices for Australians seeking to buy their own home, buy their first home and we think this is the right course of action."

Makes one wonder why the law was changed in the first place, two years ago. 

Overseas investors forcing Perth house prices up: Andrews

Thanks to the relaxation of foreign investment rules, house prices in Australia have increased as an influx of overseas investors snapped up houses in Perth and around the country. Here's a quote from AAP, from Kevin Andrews, opposition spokesman for Housing. 

"I've met with representatives elsewhere in Australia and it's quite clear both that in Perth and in Sydney and Melbourne and elsewhere around Australia there has been a significant influx after the last few months of foreign non-resident buyers of residential property in our cities," Mr Andrews told reporters in Perth.

"I was told here this morning of instances where one family bought numerous houses, doing that by using the names of different family members on the contracts.

"This is forcing up the housing prices for young Australians. It's meaning that Australians who go to auctions now or other ways of buying property are finding it much more difficult to get into the market."

Houses bought for capital gains purposes were sitting empty in Australia in some cases, Mr Andrews said.

"It's totally inappropriate. It came about because the Rudd government changed the rules last April and the exploitation of these changes in the rules is to the disadvantage of many Australians," he said.

Labor's response to the housing crisis for first homebuyers will probably determine the outcome of the next election as we are likely to take this issue to the next election and make our voices heard.

Perth's Biggest Suburb Price Growth

I know the figures are three months old but I am sure that you will find this table very helpful. Perth suburbs are sorted from the best price growth to the smallest price growth. Where suburbs have the same growth %,  suburbs are sorted by median price.

SUBURB	Median Price	Growth %
	(DEC' 2009)	(12 MONTHS)
Burswood	$959,650	88.20%
Piesse Brook	$895,000	70.50%
Cardup	$535,000	65.90%
Crawley	$1,200,000	47.90%
Champion Lakes	$590,000	32.60%
Martin	$447,500	31.60%
Osborne Park	$505,000	24.70%
Darlington	$602,500	23.00%
Burns Beach	$822,500	22.80%
Guildford	$650,000	22.60%
East Perth	$1,480,000	22.40%
Jarrahdale	$445,000	20.90%
West Swan	$782,500	19.90%
Myaree	$585,000	19.40%
Orelia	$330,000	19.20%
Daglish	$960,000	18.50%
Bickley	$739,000	15.90%
Sawyers Valley	$499,000	14.70%
Leederville	$775,000	14.00%
Mundaring	$510,000	13.30%
Stoneville	$499,000	13.20%
Ardross	$850,000	12.20%
Walliston	$460,000	12.10%
Carmel	$660,000	11.90%
Upper Swan	$580,000	11.50%
Inglewood	$735,500	11.40%
Viveash	$432,500	11.10%
Hazelmere	$396,500	9.20%
Roleystone	$540,000	9.10%
South Fremantle	$850,000	9.00%
Mount Richon	$466,500	8.50%
West Perth	$634,500	8.50%
Scarborough	$703,500	8.20%
Henley Brook	$456,750	8.10%
Kardinya	$556,500	8.10%
Balcatta	$490,000	7.70%
Koongamia	$303,000	7.60%
Rockingham	$365,000	7.40%
St James	$450,000	7.10%
Bull Creek	$575,000	6.50%
Southern River	$525,500	6.40%
Alexander Heights	$420,000	6.30%
Cannington	$370,000	5.70%
Caversham	$408,500	5.60%
Canning Vale	$517,000	5.50%
Wooroloo	$378,000	5.00%
Ashby	$452,000	4.90%
Lesmurdie	$535,000	4.90%
Bateman	$618,000	4.90%
Waterford	$871,000	4.90%
South Lake	$384,000	4.80%
Kewdale	$437,000	4.80%
Maylands	$524,000	4.80%
Mullaloo	$650,000	4.80%
Victoria Park	$565,000	4.60%
Hillarys	$740,000	4.60%
Kinross	$465,000	4.50%
Piara Waters	$535,000	4.40%
Rivervale	$480,000	4.30%
Kelmscott	$335,000	3.90%
Aveley	$483,000	3.90%
Connolly	$625,000	3.90%
Booragoon	$739,000	3.70%
Baldivis	$435,000	3.60%
Beldon	$414,000	3.50%
Aubin Grove	$500,000	3.50%
Ferndale	$385,000	3.40%
Glendalough	$520,500	3.40%
Mirrabooka	$349,000	3.30%
Warwick	$470,000	3.30%
Lockridge	$320,000	3.20%
Kenwick	$330,000	3.10%
Byford	$402,000	3.10%
Morley	$438,000	3.10%
Brentwood	$577,500	3.10%
Seville Grove	$340,000	3.00%
Lathlain	$530,000	2.90%
Willetton	$512,000	2.80%
Bedford	$550,000	2.80%
Girrawheen	$308,000	2.70%
Huntingdale	$380,000	2.70%
Clarkson	$385,000	2.70%
Shoalwater	$426,000	2.70%
Ballajura	$400,000	2.60%
Ellenbrook	$400,000	2.60%
Hamilton Hill	$436,500	2.60%
Samson	$491,000	2.60%
Peppermint Grove	$4,000,000	2.60%
Hillman	$282,000	2.50%
Craigie	$389,500	2.50%
Maddington	$312,000	2.30%
Gosnells	$317,000	2.30%
Greenwood	$450,000	2.30%
Langford	$329,000	2.20%
Currambine	$510,000	2.00%
Leeming	$579,500	2.00%
Bellevue	$335,000	1.90%
Eden Hill	$375,000	1.90%
Innaloo	$530,000	1.90%
Duncraig	$568,000	1.90%
High Wycombe	$389,250	1.80%
Brookdale	$296,000	1.70%
Port Kennedy	$371,000	1.60%
Landsdale	$507,500	1.60%
Midland	$340,000	1.50%
Thornlie	$369,500	1.50%
Westminster	$380,750	1.50%
Redcliffe	$416,500	1.50%
Riverton	$520,000	1.50%
Shelley	$599,000	1.50%
Gooseberry Hill	$642,500	1.50%
Forrestfield	$360,000	1.40%
Bertram	$380,000	1.30%
Wanneroo	$380,000	1.30%
Heathridge	$390,000	1.30%
Maida Vale	$422,000	1.30%
Edgewater	$476,000	1.30%
Noranda	$517,500	1.30%
Sinagra	$430,000	1.20%
Jindalee	$605,000	1.20%
Swan View	$355,000	1.10%
Spearwood	$445,000	1.10%
Joondalup	$470,000	1.10%
Carine	$707,500	1.10%
Camillo	$285,000	0.90%
Merriwa	$340,000	0.90%
Ridgewood	$393,500	0.90%
Hamersley	$448,000	0.90%
Hocking	$465,000	0.90%
Joondanna	$575,000	0.90%
Beechboro	$383,000	0.80%
Belmont	$420,000	0.70%
Tapping	$462,500	0.70%
Tuart Hill	$497,500	0.70%
Balga	$342,000	0.60%
Wilson	$450,000	0.60%
Dianella	$515,000	0.60%
Doubleview	$623,500	0.60%
Midvale	$290,000	0.50%
Parmelia	$284,000	0.40%
Yangebup	$386,000	0.30%
Kiara	$396,500	0.30%
Carramar	$485,000	0.30%
Greenmount	$430,000	0.20%
Ocean Reef	$691,500	0.10%
Banjup	$-	0.00%
Henderson	$-	0.00%
Hovea	$-	0.00%
Jandabup	$-	0.00%
Kwinana	$-	0.00%
Mandogalup	$-	0.00%
Mariginiup	$-	0.00%
Millendon	$-	0.00%
Naval Base	$-	0.00%
Northbridge	$-	0.00%
Wangara	$-	0.00%
Welshpool	$-	0.00%
Stratton	$325,000	0.00%
Warnbro	$325,000	0.00%
Oakford	$330,000	0.00%
Bullsbrook	$340,000	0.00%
Banksia Grove	$355,000	0.00%
Marangaroo	$385,000	0.00%
Nollamara	$391,000	0.00%
Malaga	$400,000	0.00%
Parkwood	$400,000	0.00%
South Guildford	$400,000	0.00%
Baskerville	$440,000	0.00%
Success	$470,000	0.00%
Kingsley	$500,000	0.00%
O'Connor	$510,000	0.00%
Wungong	$582,500	0.00%
Manning	$670,000	0.00%
Hope Valley	$750,000	0.00%
Koondoola	$309,250	-0.20%
Willagee	$460,000	-0.30%
Kensington	$720,000	-0.30%
Lynwood	$363,000	-0.50%
Two Rocks	$385,000	-0.50%
Wattle Grove	$460,000	-0.60%
Waikiki	$347,500	-0.70%
Cooloongup	$297,500	-0.80%
Mount Helena	$430,000	-0.80%
Calista	$275,000	-0.90%
Beeliar	$441,000	-0.90%
Palmyra	$570,000	-0.90%
Subiaco	$1,160,000	-0.90%
Butler	$415,000	-1.20%
Yanchep	$415,000	-1.20%
Bicton	$815,000	-1.20%
Madeley	$555,000	-1.30%
Helena Valley	$545,000	-1.40%
Middle Swan	$330,000	-1.50%
Alfred Cove	$665,000	-1.50%
Queens Park	$369,000	-1.60%
Kalamunda	$531,500	-1.60%
Padbury	$440,000	-1.70%
Atwell	$467,000	-1.70%
Bayswater	$489,500	-1.70%
Munster	$499,000	-1.70%
Armadale	$275,000	-1.80%
Quinns Rocks	$443,000	-1.80%
Beckenham	$360,000	-1.90%
Cloverdale	$397,500	-1.90%
Woodvale	$567,500	-2.00%
Safety Bay	$374,500	-2.10%
Woodlands	$869,000	-2.30%
Embleton	$425,000	-2.40%
Winthrop	$800,000	-2.40%
Mundijong	$395,000	-2.50%
Rossmoyne	$925,000	-2.50%
Hilton	$455,000	-2.80%
Wembley Downs	$870,000	-2.80%
North Perth	$743,000	-2.90%
East Cannington	$390,000	-3.00%
Jandakot	$620,000	-3.00%
Bassendean	$416,000	-3.10%
Leda	$300,000	-3.20%
Boya	$436,500	-3.20%
Coogee	$755,000	-3.20%
East Victoria Park	$520,000	-3.30%
Pearsall	$472,500	-3.60%
Wellard	$385,000	-3.70%
Carlisle	$428,750	-3.70%
Como	$750,000	-3.80%
Woodbridge	$465,000	-3.90%
Coolbellup	$370,500	-4.10%
Mount Hawthorn	$723,000	-4.20%
Iluka	$790,000	-4.20%
Bentley	$406,546	-4.30%
Singleton	$430,000	-4.40%
Kallaroo	$538,000	-4.40%
West Leederville	$980,000	-4.40%
East Fremantle	$987,500	-4.40%
Mount Pleasant	$925,000	-4.60%
Claremont	$1,300,000	-4.80%
Churchlands	$1,100,000	-5.20%
Sorrento	$842,500	-5.30%
North Lake	$538,000	-5.60%
Herne Hill	$330,000	-5.70%
Chidlow	$372,500	-5.70%
South Perth	$985,000	-5.70%
Orange Grove	$485,000	-5.80%
Gwelup	$696,750	-5.80%
Jane Brook	$473,750	-6.20%
Bibra Lake	$450,000	-6.30%
Hammond Park	$459,000	-6.30%
Darch	$530,000	-6.40%
White Gum Valley	$599,000	-6.40%
Ashfield	$392,500	-6.50%
Secret Harbour	$435,000	-6.50%
Mount Claremont	$1,200,000	-6.60%
Mount Lawley	$850,000	-6.80%
Trigg	$960,000	-6.80%
Karragullen	$270,000	-6.90%
Mount Nasura	$372,000	-6.90%
Mindarie	$600,000	-7.00%
Mahogany Creek	$415,000	-7.30%
Melville	$660,000	-7.70%
Karrinyup	$692,500	-7.70%
Harrisdale	$535,000	-7.80%
Glen Forrest	$488,250	-7.90%
Yokine	$542,500	-8.30%
Menora	$900,000	-8.40%
Nedlands	$1,500,000	-8.50%
The Vines	$610,000	-8.60%
Floreat	$1,050,000	-8.70%
Cottesloe	$1,800,000	-8.90%
Bedfordale	$655,000	-9.50%
Murdoch	$610,000	-9.60%
Karawara	$640,000	-9.70%
Stirling	$700,000	-10.00%
Wembley	$830,000	-10.00%
Serpentine	$489,500	-10.20%
Wattleup	$480,000	-10.30%
Parkerville	$495,000	-10.40%
Shenton Park	$888,000	-10.80%
Fremantle	$660,000	-11.40%
Dalkeith	$2,480,000	-11.40%
Medina	$230,000	-11.50%
Perth	$663,750	-11.50%
Forrestdale	$335,000	-11.80%
Golden Bay	$370,000	-11.90%
Mardella	$590,000	-13.10%
City Beach	$1,651,000	-13.40%
Applecross	$1,362,500	-13.60%
Salter Point	$935,000	-14.20%
Pickering Brook	$435,000	-14.70%
Beaconsfield	$630,000	-14.90%
Casuarina	$720,000	-15.30%
Darling Downs	$685,000	-16.50%
Coolbinia	$930,000	-16.60%
Marmion	$718,750	-17.40%
Cockburn Central	$365,000	-18.00%
Swanbourne	$1,235,000	-18.50%
North Coogee	$1,125,000	-19.60%
Jolimont	$1,000,000	-19.80%
North Fremantle	$820,750	-24.50%
Attadale	$925,000	-26.00%
Mosman Park	$1,100,000	-27.20%
Watermans Bay	$1,100,000	-28.30%
Highgate	$615,000	-28.50%
Ascot	$505,000	-30.30%
North Beach	$772,500	-31.30%
Gidgegannup	$255,000	-39.00%