The state government is considering increasing the stamp duty paid by foreign investors in an effort to help first home buyers in NSW.

New figures reveal more than one in 10 residential properties sold in NSW are being snapped up by foreigners, with a third of them bought by Chinese nationals.

Data from the Office of State Revenue shows that in the three months from July to September 2016, foreign nationals accounted for 11 per cent – or 2995 – of residential property purchases in NSW compared to 7.51 per cent by first home buyers, according to NSW Labor.

Opposition leader Luke Foley is pushing for the surcharge to be lifted from four per cent to seven per cent for foreign investors on residential homes – to dampen the pressure they exert on housing prices.

“Evidence suggests a surcharge on foreign investors will take some pressure off house prices and go a way to levelling the playing field for first home buyers,” he said on Tuesday.

NSW Treasurer Dominic Perrottet was aware of the problem and would lift the surcharge in the June budget, according to the Daily Telegraph.

Premier Gladys Berejiklian concedes more needs to be done to improve housing affordability in the state.

AAP