In 2013 foreign investors obtained permission from the Victorian government to build or to buy 4,500 houses, amounting to some $18b worth of approvals. Numbers of houses falling into foreign hands are increasing, with the Chinese the biggest buyers and builders, followed by the Canadians, Americans and Singaporeans. There were 12,025 applications to invest in Victorian real estate according to an annual report for 2012-2013. Not one was rejected. On Wednesday 19 March 2014 the Treasurer, The Hon Joe Hockey MP, asked the Economics Committee to inquire into and report on Australia's foreign investment policy as it applies to residential real estate.
Although the date for submissions seems to have passed, the committee is still receiving them. Since most submissions have come from professional organisations with a financial interest in promoting more houses, there is a great need for members of the public who cannot afford housing to make submissions. Submissions
The Committee invited interested persons and organisations to make submissions addressing the terms of reference by Friday 9 May 2014. However it looks as if they are still accepting submissions.
Inquiry Status
Accepting Submissions
The committee invites individuals and organisations to send in their opinions and proposals in writing (submissions)
- Preparing a submission to an inquiry
Terms of Reference
In the context of concerns raised periodically in relation to the possible impact of foreign investment on the Australian housing market, the Committee was asked to examine;
the economic benefits of foreign investment in residential property;
whether such foreign investment is directly increasing the supply of new housing and bringing benefits to the local building industry and its suppliers;
how Australia's foreign investment framework compares with international experience; and
whether the administration of Australia's foreign investment policy relating to residential property can be enhanced.The Committee is to report by 10 October 2014.
Submissions already received
Not all submissions are from the growth lobby, but most are.
Submission 18 by Mr Hundley robustly questions the overseas buyer trend and suggests that Australians "should not consider themselves to be the hapless victims of international flows of capital into Australian residential real estate, even though successive Australian governments have been behaving as though we are. Instead, we should behave as if we are the masters of our own destiny in protecting and developing the things we value the most. This includes our built environment and access sto residential real estate at reasonable prices by our own citizens as a major priority." Submission 13 also challenges business as usual and uses material from a Ku-ring-ai environment group. Please read the submissions and try to make a contribution.There are two pages of submissions, downloadable here.
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Anonymous (not verified)
Mon, 2014-06-02 05:39
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Australia's housing bubble
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