Real estate agents and property lawyers are selling Australian property to foreign investors for as much as 30% more than the estimated value.
Buyers’ agent David Morrell told The Australian Financial Review the illegal practice is particularly popular in property priced above $10 million, where Chinese nationals were snapping up the homes at 20% to 30% premiums to the local marketplace.
Agents and lawyers pocket higher commissions and Morrell is calling those involved to be disqualified.
Some websites are now dedicated to selling to overseas buyers.
The Simeon Manners agency has sold hundreds of millions of property to overseas buyers, with one real estate agent there saying the Chinese are the “most astute buyers and investors”.
Richard Simeon, a director of the agency, said he does not see an ethical issue as listing the houses exclusively overseas provides a valuable service to his clients, making sure they get the best possible price.
Read about that here.
Many argue that foreign investment plays a critical role adding property to the local market with the director of the Property Council Association saying foreign buyers have created between 15,000 and 20,000 homes for Australian buyers this year alone.
The AFR has more.
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