The Australian government has introduced a two-year ban on foreign investors purchasing existing homes as part of its strategy to address the ongoing housing affordability crisis. The restriction, set to take effect on 1 April 2025, aims to make properties more accessible to local buyers, particularly young Australians who have faced escalating property prices.
Housing Minister Clare O’Neil announced the policy on Sunday, revealing that foreign investors, including temporary residents like international students and foreign-owned companies, will be barred from purchasing homes until March 2027. This move will be reviewed after two years to decide whether to extend the policy further. O’Neil emphasized that the policy would “free up thousands of properties for Australians,” underscoring the government’s focus on promoting homeownership for local citizens.
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In addition to the foreign investment ban, the government is taking steps to tackle land banking, requiring foreign investors to develop vacant land within a specified timeframe. While the move is intended to increase housing supply, experts argue that the impact on property prices may be minimal, as foreign buyers represent a small share of the market. In the 2022-23 period, foreign investors accounted for just 5,360 residential property purchases, with only a third of them involving existing homes.
The policy, proposed by opposition leader Peter Dutton and later adopted by the government, comes at a time when housing affordability is a key issue in the lead-up to elections. Both major political parties are under pressure to address the soaring property prices and ensure more homes are available for local residents.
