The Australian Government has announced a temporary ban on foreign purchases of established dwellings, set to take effect from 1 April 2025 to 31 March 2027.
This measure aims to curb speculative investment and support housing supply.
During this period, foreign individuals, temporary residents, and foreign-owned companies will be restricted from purchasing established homes, except in limited cases where the investment directly contributes to increasing housing supply.
Other exemptions apply for permanent residents, New Zealand citizens, and spouses of Australian citizens or permanent residents when purchasing as joint tenants.
The Government will also audit existing foreign investment approvals and tighten compliance on vacant residential land development to ensure investors meet development conditions. A review will determine whether the ban should be extended beyond 2027.
These changes signal a significant shift in Australia’s approach to foreign investment in residential property. If you’re considering selling or investing, understanding how this impacts demand and pricing in certain segments will be key.
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