Review of foreign investment guidelines

The Real Estate Institute of Australia supports the changes to the Australian economy over the last few years, which have ensured that the property market is more open to investment from overseas. Such investment in Australian property has been a major source of capital for many large commercial and residential projects, especially in the tourism and CBD residential sectors.

Treasury's Foreign Investment Review Board Guidelines were initially introduced several years ago in response to foreign investment activity on the coast of Queensland and New South Wales. It was feared that the costs of residential property would be pushed beyond the means of many Australian residents. The extent to which these guidelines now contribute to a healthy investment market needs to be reviewed. A review of the foreign investment guidelines has been conducted and the Real Estate Institute of Australia has provided a submission to the Foreign Investment Review Board.

Essentially, the Real Estate Institute of Australia proposes a review of Australia's Foreign Investment Guidelines in order to:

a.	up date thresholds values to bring them in line with current and forecast medium term property market prices and trends,
b.	revise the conditions for redevelopment of residential real estate, and
c.	liberalise the laws that place restrictions on the eligibility of foreigners who may purchase property in Australia.

For further information contact the REIA Secretariat at reia@reiaustralia.com.au

May 2003