KordaMentha KordaMentha is an Australian advisory and investment firm that provides specialist forensic, real estate, turnaround / restructuring and investment management services. The business was formed in April 2002 by Mark Korda and Mark Mentha. Located at
Level 24, 333 Collins Street, Victoria, Australia.
Phone: +61 3 8623 3333

Parliamentary Inquiry Report: Foreign Investment in Real Estate

The report of the Parliamentary Inquiry into Foreign Investment in Real Estate was officially released yesterday, generating a significant level of interest and comment in the media.

Whilst not all commentators are wholly supportive of all of the key findings and associated recommendations of the Committee, there appears to be a general consensus that data on foreign investment, particularly in the residential market, is poor and needs improvement.


The Committee’s remit was to examine:

  • the economic benefits of foreign investment in residential property;
  • whether such foreign investment is directly increasing the supply of new housing and bringing benefits to the local building industry and its suppliers;
  • how Australia’s foreign investment framework compares with international experience; and
  • whether the administration of Australia’s foreign investment policy relating to residential property can be enhanced.

After conducting six public hearings and reviewing in excess of 90 individual submissions, the Committee made four key findings:

  • There is currently no accurate or timely data that tracks foreign investment in residential real estate;
  • The FIRB is unable to provide basic compliance information about its investigations and enforcement activity, reflecting poorly on its administration;
  • An inability or unwillingness to meaningfully enforce the existing rules has made it is less likely that people will comply with those rules;
  • The above issues have potentially arisen due to underinvestment in FIRB’s audit, compliance and enforcement activities, funding for which could be boosted by adoption of a ‘user pays’ system.

The Committee’s report then makes twelve separate recommendations to improve FIRB operations.

 

A copy of the full report is available here.

 

If you wish to discuss the findings of this report with one of our real estate or investment managers please contact our senior advisors below.


 

 

Berrick Wilson_BW_Web head shot

Berrick Wilson

Partner

Melbourne

+61 3 8623 3322

Paul Mirams_BW_Web head shot

Paul Mirams

Partner

Sydney

+61 2 8257 3067

 

 

 

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Tom Davis

Partner

Brisbane

+61 7 3338 0200

Tony O'Callaghan_BW_headshot

Tony O'Callaghan

Partner

Perth

+61 8 9220 9349

 

 

 

 

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