The Federal Government has ordered the sale of eight properties illegally bought by foreign investors, totalling $8.3 million.

The owners in Canada, China, India, Malaysia and the United States have a year to sell or they will face criminal prosecution.

Since 2013, the Coalition Government has ordered the sale of 27 homes, a further 800 are being investigated.

Location of properties to be divested: Mount Waverley, Victoria: Valued at $5.1 million

Mount Waverley, Victoria: Valued at $5.1 million Eight Mile Plains, Queensland: Valued at $780,000

Eight Mile Plains, Queensland: Valued at $780,000 Park Ridge, Queensland: Valued at $665,000

Park Ridge, Queensland: Valued at $665,000 Blackburn, Victoria: Valued at $525,500

Blackburn, Victoria: Valued at $525,500 Windsor, New South Wales: Valued at $518,000

Windsor, New South Wales: Valued at $518,000 Robertson, Queensland: Valued at $343,000

Robertson, Queensland: Valued at $343,000 Crestmead, Queensland: Valued at $250,000

Crestmead, Queensland: Valued at $250,000 Carlton, Victoria: Valued at $215,000

Treasurer Scott Morrison said while foreign investment was vital to Australia, people had to abide by local rules.

He said investors targeted in the recent announcement had either bought established residential property without Foreign Investment Review Board approval, or had approval but their circumstances changed.

"The Government's transfer of responsibility to the ATO [Australian Tax Office] for compliance has enabled more active investigations and actions targeting illegitimate purchases," he said.

"Since this transfer in May, over 1,500 matters have been referred for investigation.

"Through information provided by the public, together with the ATO's own enquiries, over 800 cases remain under active investigation."

The figures represent a significant increase in the number of cases under investigation, effectively doubling in the past five months.

Mr Morrison said the property owners have 12 months to sell the properties and will not be referred for criminal prosecution, though criminal penalties of up to $135,000 can apply in some cases.