Foreign Investment Freeze:
Australia imposes a two-year ban on established home purchases and cracks down on land banking.
The government has announced a temporary ban on foreign investors buying established homes between 1 April 2025 and 31 March 2027.
From 1 April 2025, foreign investors (including temporary residents and foreign-owned companies) will be prohibited from acquiring established dwellings unless they qualify for specific exemptions. While exemptions exist, they are limited.
Australian citizens or permanent residents considering purchasing property for their foreign family members to bypass these new restrictions may be committing an offence.
According to the REA Group, this is unlikely to significantly affect the supply available to Australians.
The latest ATO data shows that only 1% of real estate purchases were by foreigners, and only a third of those were for established homes.
Vacant land
In addition, foreign investors purchasing vacant land will be required to meet development conditions that require the land to be used productively within a reasonable timeframe.
The measure aims to curb foreign “land banking.”
The government will undertake a review at a later date to determine if the ban should be extended beyond 31 March 2027.
Need More Clarity on the Ban on Foreign Property Purchases?
Contact our team today if you’re unsure how the ban on foreign property purchases affects you. We can guide you through exemptions and ensure you comply with the new regulations.
