Aussie govt cracks down on foreign property investors

A woman walks past signs advertising a new apartment block in Sydney, Australia, June 17, 2016. [Photo/VCG]

MELBOURNE - Australia's foreign investment authority has issued a warning to overseas property buyers after Chinese investors were forced to sell a multimillion-dollar mansion.

Jin Ding International Investments Pty Ltd was told to sell a five-bedroom residence in Melbourne because the investors failed to obtain the approval of the Financial Investment Review Board (FIRB) before buying the property.

Revenue and Financial Services Minister, Kelly O'Dwyer, said the Brighton property was one of 30 properties the government had ordered to be sold after an investigation uncovered a series of breaches in foreign investment rules.

"It is critically important that the Australian public has confidence in the foreign investment framework," Dwyer told News Limited on Tuesday.

"No matter what the value of the property, the Government has an extensive process to ensure compliance with the rules."

Foreign citizens buying residential property in Australia can only do so under a set of specific circumstances, such as the proposed investment increasing Australia's housing stock.

The 30 properties sold as a result of the crackdown have netted a combined ￥60 million for the former owners from the United States, Canada, Germany, China, Singapore, the United Kingdom and Saudi Arabia.

The Australian Taxation Office (ATO) will continue to investigate a number of foreign property owners in Melbourne and Sydney as the crackdown continues.