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Will foreign property buyers from China, Asia shun Australian market over latest fees surge?
- Canberra says its latest measures are aimed at preserving the housing supply for local buyers and tenants
- Many foreign buyers have been flocking to other markets with lower buying thresholds and fees such as Dubai, industry players say
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Su-Lin Tanin Singapore
Australia has raised foreign buyer fees for residential property again, this time tripling application costs for the purchase of second-hand homes and doubling fees for homes left vacant.
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The Australian government passed the new rules on Wednesday to preserve the housing supply for local buyers and tenants.
Industry insiders say the latest round of fee hikes is expected to “scare” off more foreign buyers, particularly those from China who had previously dominated the Australian market, and prompt them to eye other housing markets with lower cost and entry barriers such as Dubai.
Treasurer Jim Chalmers and Housing Minister Julie Collins said the higher fees were essential to ensure foreign investment in residential property was in Australia’s national interest.
Australia’s housing market is one of the most inaccessible in the world due to high prices and shortage, especially in bigger cities such as Sydney.
Despite rising interest rates, the tight supply of homes – partly driven by reduced construction – has continued to push up house prices in major Australian cities, while the number of rental homes fell to a new low in December at 20 per cent lower than the 10-year average.
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