Foreign Home Purchases BANNED Amidst Housing Shortage

In a move to address housing affordability, the Australian Government announced on February 16, 2025, a temporary ban on foreign acquisitions of existing residential properties. This ban, effective from April 1, 2025, to March 31, 2027, aims to alleviate the housing shortage by prioritising local buyers.

Treasurer Jim Chalmers and Housing Minister Clare O’Neil stated that this measure is expected to release approximately 1,800 homes back into the Australian residents’ market annually. The ban encompasses all foreign buyers, including temporary visa holders and foreign-owned corporations.

“These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes,” the ministers’ statement said.

Certain exceptions apply to the restrictions on investments. Investments that significantly increase housing supply or improve housing availability and those related to the Pacific Australia Labour Mobility (PALM) scheme may be allowed. Furthermore, permanent residents, New Zealand citizens, and spouses of Australian citizens or permanent residents purchasing property as joint tenants are exempt from these restrictions.

The Australian Taxation Office (ATO) will implement the ban by enhancing the screening processes for foreign investment proposals related to residential properties. Additionally, an audit will be conducted on existing foreign investment approvals concerning undeveloped residential land to ensure compliance with development conditions.

A review will determine whether the ban should be extended beyond 31 March 2027. This initiative is part of the government’s broader strategy to tackle the housing affordability crisis and make homeownership more attainable for Australians.

See More on the ATO website