The Federal Government announced today that it has decided to tighten the rules for the foreign investors who want to buy property in Australia.

The Government said that it has taken this decision as it was getting complaints about the Asian investors who were making Australian real estate market among the most expensive in the world.

According to the new rules, now temporary residents will now have to seek approval from the Foreign Investment Review Board to buy any real estate in Australia and they must sell their properties when they leave the country. The new rules also said that the foreign investors who want to invest from abroad can only buy new properties in Australia.

The new rule will also target vendors and real estate agents in Australia. Assistant Treasurer and Senator Nick Sherry said today that they would face civil penalties if they were found involved in transactions that breached the Foreign Acquisitions and Takeovers Act.

However, the Urban Taskforce Australia, a developer lobby group, said that it has concerns about the new rules on foreign investment in real estate. The group said that it is concerned about the Government's suggestion it will impose penalties on people selling homes when the buyer has breached foreign ownership rules.