Offshore investors have baulked at Australian property following the Foreign Investment Review Board's inquiry into non-resident investment, according to national law firm Maddocks.

FIRB recommendations were released in November, 2014 and included new administration fees and tougher enforcement, including criminal penalties, for rule breaches. While new rules are yet to be introduced, Maddocks property and real estate partner Nick Holuigue said Asia-based investors kept close watch on international politics and policy which could impact investment.