NSW Member for Kiama Gareth Ward has moved a motion that will establish an inquiry into banning foreign ownership of residential property if successful.

Ward cited the need to secure more affordable housing in NSW as the motivation behind the motion.

“Between 1995-96 and 2011-12, the value of foreign investment approvals in Australian real estate increased from $12.4 billion to $59.1 billion. Since 1995-96, the number of foreign residential investment approvals in Australia has increased from 3,181 to 9,768,” said Ward.

“There are many countries around the world where I can’t purchase land. Why should a foreign investor be able to buy land in NSW if I can’t do the same in their country.”

“I want to encourage more people to own their own home, but first home buyers are being crowded-out by foreign investment. Australian first home buyers should be 

able to purchase their own home before foreign investors. Housing is a continuum and when you crowed out first home buyers, this also inflates the prices of rents.”

Ward acknowledged that banning foreign investment may required Commonwealth involvement, but suggested NSW could pave the way for other states to do the same.

The motion is as follows:

a) Establishes a Select Committee on banning residential property ownership by foreign investors and entities. 

b) That the committee consider making recommendations to the Commonwealth to ban foreign ownership of residential property

c) Notes that centre-left governments in Canada and New Zealand have banned property ownership by foreign investors. 

d) That the committee comprise four government, three opposition and two crossbench members.

Foreign investors require approval from the Foreign Investment Review Board to purchase property. In NSW, foreign investors must also pay a foreign surcharge in addition to land tax they would usually pay. 

On 12 November 2023, NSW Treasurer Daniel Mookhey said that the state government will review the short-term rental accommodation by the end of year. Up to 90,000 homes, including short-term rentals and holiday houses, were identified as properties that could be freed up for the long-term rental market.