The latest data from the Foreign Investment Review Board (FIRB) confirms that foreign buyers—particularly from China—are racing to secure Australian property ahead of a looming ban on temporary residents purchasing existing homes.
In the September quarter alone, buyers from mainland China were approved for $400 million in residential real estate purchases, with Hong Kong and Taiwan contributing another $200 million combined.
These figures account for nearly half of the quarter’s $1.3 billion in approved foreign investments.
The federal government’s new policy, coming into effect on April 1, will prohibit temporary residents from purchasing established homes for the next two years.
However, permanent residents remain exempt, and the ban does not apply to new dwellings.
While foreign investment represents only a small fraction of the overall property market—just 1123 approvals compared to the 663,000 residential sales in the last financial year—some experts expect a last-minute surge in transactions.
“You will have a significant increase in FIRB transactions, as they want to catch the last train,” said Fiona Yang of Plus Agency.
Despite concerns, industry professionals suggest the impact of the ban may be limited.
“The majority of buyers of Chinese heritage that I deal with have permanent residency,” said Jason Roach of The Agency, adding that the rule change is unlikely to significantly alter demand in key markets.
As the deadline approaches, the property landscape is shifting. Stay informed on key market updates by subscribing to our newsletter.
