Some of the owners, who live in four countries, purchased the properties with Foreign Investment Review Board approval, while others have broken the rules

Joe Hockey has ordered the sale of six residential properties owned by foreign nationals.



The owners live in four countries, with one investor having two in a Perth suburb, the treasurer told reporters in Sydney on Saturday.



Joe Hockey says search is on for illegal foreign home purchases after tipoffs Read more

Some purchased the properties with Foreign Investment Review Board approval but their circumstances have changed, while others have simply broken the rules, he said.



Hockey said the purchase price of the properties – in Sydney, on the outskirts of Brisbane and in Perth – ranged from $152,000 to $1.86 million.



The investors voluntarily came forward following the amnesty the federal government announced in May.



“They now have 12 months to sell the properties, rather than the normal three-month period, and they will not be referred for criminal prosecution,” he said.



There are 462 other cases under investigation, with the treasurer predicting more divestment orders being made in the future.

“I expect more divestment orders will be announced in the not too distant future,” he said.



The treasurer urged others to come forward before the November 30 cut off, saying he will introduce tighter rules into parliament during the next two weeks.



They will include tougher civil penalties, which will see investors lose the capital gain made on the property, 25% of the purchase price or 25% of the market value of the property.



“Australia’s foreign investment policy for residential real estate is designed to increase our housing stock, but those who break the rules and purchase established property illegally are doing so to the detriment of all Australians,” he said.

