(Yicai Global) June 2 -- The government of New South Wales, Australia will double the rate of its stamp duty surcharge on foreign homebuyers from 4 percent to 8 percent, to curb soaring housing price and render houses affordable for locals.

Sydney is the state capital of the eastern state of New South Wales (NSW).

Sydney has also decided to hike the annual land tax surcharge for foreign property owners from 0.75 percent to 2 percent. Some 77 percent of foreign homebuyers in the state are Chinese. The 'first home owner grant' policy will be adjusted to encompass both new and second-hand property purchases. NSW Premier Gladys Berejiklian is expected to disclose further details of the plan at a cabinet meeting next Thursday. NSW will release its budget on June 20.

The impact of foreign buyers on the local housing market has ignited fierce debate. Of those who bought properties in the state in the third quarter, 11 percent were foreigners, per local government statistics. Australia's Foreign Investment Review Board approved 13,000 sales of properties to foreigners in New South Wales in fiscal year 2016, making up roughly one-third of the total number of property sales involving foreign buyers in all of Australia.