Australia has announced a two-year ban on foreign investors purchasing existing homes, starting April 1, 2025, as part of efforts to address the ongoing housing crisis, Report informs via Business Standard.
This policy aims to free up approximately 1,800 properties annually for local buyers. The decision comes amid growing dissatisfaction with housing affordability, a key issue in the upcoming general elections. “We’re banning foreign purchases of established dwellings from April 1, 2025, until March 31 2027,” treasurer Jim Chalmers said in a statement with housing minister Clare O’Neil.
The ban, which will run until March 31, 2027, is seen as a move to ease the pressure on housing supply. A review of the policy will be conducted to determine whether it should be extended further.
Under the government’s plan, foreign investors – including temporary residents such as international students and foreign-owned companies – will not be allowed to purchase an established dwelling in Australia from April 1, 2025, until March 31, 2027.
They will still be able to purchase new dwellings, to encourage the supply of housing.
The government will also crack down on land banking by forcing foreign investors who purchase vacant land to develop it within a reasonable timeframe.
For new developments, foreign investors are restricted to owning no more than 50% of the property, ensuring local buyers and investors maintain a significant stake in the development.
