Foreign investor tax hikes flagged in NSW

Foreign investors could be forced to pay higher stamp duty taxes under plans being considered by the NSW government.

Premier Gladys Berejiklian on Tuesday confirmed she was looking into increasing the current four per cent surcharge on foreign buyers.

The measure however won't necessarily ease Sydney's crippling housing affordability crisis, the premier has warned.

"We are looking at increasing the surcharge, I will confirm that, but it's not going to be the solution," she said.

"There's a broader package you need to look at to really address housing affordability."

It comes as new figures revealed more than one in 10 residential properties sold in NSW were snapped up by foreigners in the September quarter.

NSW Labor is pushing for the surcharge to be lifted from four per cent to seven per cent for foreign investors on residential homes.

But the property industry has criticised the opposition's push to "target" foreign buyers, with some arguing it will actually reduce housing supply.

Ms Berejiklian - who has made housing affordability her number one priority as premier - has repeatedly said that boosting supply is the key government response to the housing affordability crisis.