According to data from the Office of State Revenue, between July 2016 and September 2016, foreign nationals accounted for 11 per cent, or 2,995, of all New South Wales residential property purchases.
Only 7.51 per cent of purchases were made by first home buyers.
The NSW Labor opposition government has announced it will lift surcharges for foreign investors on residential homes, putting the pressure on Gladys Berejiklian's government to also move on the issue. Berejiklian has said that housing affordability is a key plank of her government's agenda.
NSW opposition leader Luke Foley said, if elected, he will raise the foreign investor stamp duty surcharge from 4 per cent to 7 per cent; and will double the land tax surcharge from the current 0.75 per cent to 1.5 per cent, bringing it into line with Victoria's land tax.
Foley said the proposed policy is aimed at making housing more affordable in New South Wales.
“Evidence suggests a surcharge on foreign investors will take some pressure off house prices and go a way to leveling the playing field for first home buyers," he said.
Shadow treasurer Ryan Park said his party has examined what is "causing prices to spiral out of control."
Recent data from CoreLogic shows Sydney's property prices rose 18.4 per cent in the year to February 2017.
Berejiklian said it is too soon to tell if the surcharges introduced by the Baird government last year are dampening demand from offshore buyers. "The jury is still out," she said.
The Australian Financial Review has reported that properties worth millions of dollars can sell in China within days on social media, indicating a feverish level of interest in Sydney property remains.
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