The Foreign Investment Review Board (FIRB) Annual Report for the 2016-17 year was released this week and confirms the expected drop in the level of Foreign Investor activity in the Australian property market.  

Vendors can no longer take it for granted that investors from China will be queuing for residential investments, or even buying sight unseen  - and therefore have less chance of obtaining that windfall price.

The report confirms that the combined efforts of the FIRB along with State and Federal tax changes and surcharges for Foreign Investors have taken their toll with Chinese investors who are taking their investment dollars to neighbouring Asian markets rather than to Australia.

While China remains the most significant region investing here and is expected to continue as such - our Government needs to consider whether this will have the desired impact on housing affordability or it simply means this is capital that Australia is missing out on.