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Agence France-Presse

Australia will impose a dramatic rise in fees on foreign buyers of existing homes who leave them empty, the government said Sunday as it tries to ease a rental crisis.
The centre-left Labor government said it would introduce new legislation next year to help alleviate tight supply that has left many renters struggling to find somewhere to live.
As supply dwindled, rental prices surged 7.6 per cent nationally in the year to September 30, the sharpest increase in 14 years, official statistics show.
“There are too many properties empty around Australia,” Treasurer Jim Chalmers said.
“There are not enough homes available to Australians who desperately need them,” he added in an interview with Sky News Australia.
The measures aim to push foreigners to invest in new housing developments instead of buying existing stock, the government said in a statement.
‘It’s never been this bad’: what’s behind Australia’s looming mortgage crunch?
Foreigners are already barred from purchasing established homes in Australia unless they live in the country for work or study, and they are usually required to sell the homes when they leave.
To buy an existing home, foreigners currently pay a foreign investment fee that varies depending on the home price – for example, A$28,200 (US$18,500) for a median-priced Sydney home of a little over A$1 million.
Under the new scheme, the fee will be tripled.
In addition, foreign owners of established homes that are vacant for more than six months will face a higher annual vacancy fee.
That fee – now the same level as the foreign investment fee – will be doubled under the new plan.
The overall effect of the double-blow would be a six-fold increase in annual fees for foreigners who leave existing homes vacant.

The changes announced on Sunday will generate around A$500 million, which the government could invest in priority areas like housing, Chalmers told reporters in Brisbane, according to a transcript.
“These adjustments are all about making sure foreign investment aligns with the government’s agenda to lift the nation’s supply of affordable housing,” Chalmers said in the statement.
It is unclear, however, if foreign ownership of existing homes in Australia is a big problem for the rental market.
Australia’s treasurer said vacancy fees imposed on foreign owners of established homes raised only about A$5 million a year.
One report indicated there were just 23 such “breaches” in the past year, Chalmers said, though he believed the numbers “are likely to be underdone”.
Like Hong Kong, Malaysia clamps down on ‘inhumane’ coffin homes
The government said it would also lower the fees for foreign investors in build-to-rent projects.
“We welcome foreign investment because it plays a crucial role in our nation’s economic success,” Chalmers said.
Last month, the government established an A$10 billion investment vehicle to help increase the supply of social and affordable housing.


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Australia

Australia to triple fees on foreigners buying existing homes, penalise them if they leave properties empty

A multi-storey apartment building being constructed in Marrickville, Sydney. Photo: Reuters

Australia’s Treasurer Jim Chalmers. Photo: Bloomberg

Like Hong Kong, Malaysia grapples with ‘grave pit’-sized homes as high living costs bite

A woman walks beneath a block of flats in downtown Kuala Lumpur. Photo: AP

A view of Kuala Lumpur before sunrise. A hike in rental prices has led to tenants downsizing their options, with some forced to stay in ‘coffin homes’. Photo: Reuters

A block of flats in Malaysia’s capital. Kuala Lumpur City Hall in August banned residential and commercial properties from erecting partitions to create living and dining areas. Photo: AFP

In Australia, a looming mortgage crunch hints at wider economic woes to come: ‘it’s never been this bad’

Residential properties in a Sydney suburb. Photo: Reuters

Residential and commercial properties are seen near the Opera House and Harbour Bridge in Sydney, one of Australia’s biggest – and priciest – housing markets. Photo: Shutterstock

An aerial view of houses in the Sydney suburb of Clovelly. Median home prices in Australia’s most expensive city regularly exceed A$1 million (US$668,000). Photo: Reuters

Australian Prime Minister Anthony Albanese speaks to the media in Sydney on Wednesday. Photo: Australian Broadcasting Corp. via AP

A for-sale sign is seen outside a home under foreclosure in Denver, Colorado. Australia hasn’t yet seen a wave of foreclosures like the one that hit the US during the subprime mortgage crisis of 2007-2010. Photo: AP

A row of newly built apartment blocks is seen in the Sydney suburb of Epping. Mortgages are estimated to account for about 65 per cent of bank’s balance sheets in Australia. Photo: Reuters

RBA Governor Philip Lowe attends a G20 finance meeting in Indonesia last year. He alluded to future economic “uncertainty” for Australia in his statement following Tuesday’s decision on interest rates. Photo: Reuters

Chinese students in ‘panic mode’ amid Australia housing crisis: ‘if I get desperate, I could sleep rough on the streets’

Students walk around the University of New South Wales campus in Sydney. Photo: AP

Students walk around the University of New South Wales campus in Sydney. China’s abrupt reopening  has triggered a rush for student accommodation in Australia amid surging rents. Photo: AP

Student accommodation under construction near the University of New South Wales in Sydney. Pandemic-induced delays have led to a shortage of student housing in Australia. Photo: Reuters

Students walk past stalls last month during orientation week at The University of Sydney. Some Chinese students in Australia have been charging their peers in mainland China to attend house viewings on their behalf. Photo: Reuters

News

Asia

Australasia

Treasurer Jim Chalmers said ‘there are too many properties empty around Australia’ as tight supply leaves many renters struggling to find somewhere to live
The measures would be a six-fold increase in annual fees for foreigners who leave existing homes vacant


Treasurer Jim Chalmers said ‘there are too many properties empty around Australia’ as tight supply leaves many renters struggling to find somewhere to live.


Australia to triple fees on foreigners buying existing homes, penalise them if they leave properties empty

Treasurer Jim Chalmers said ‘there are too many properties empty around Australia’ as tight supply leaves many renters struggling to find somewhere to live The measures would be a six-fold increase in annual fees for foreigners who leave existing homes vacant

Treasurer Jim Chalmers said ‘there are too many properties empty around Australia’ as tight supply leaves many renters struggling to find somewhere to live

The measures would be a six-fold increase in annual fees for foreigners who leave existing homes vacant