Australia Imposes 2-Year Ban on Foreign Property Purchases

Australia has announced a two-year ban on foreign entities purchasing existing residential properties, a move aimed at addressing the country’s housing crisis.

Housing Minister Clare O’Neil confirmed the decision in an interview with Sky News on Sunday, calling it a "significant step" to ease pressure on the housing market.

The ban, set to take effect on April 1, will prohibit foreign companies and temporary residents from buying existing homes in Australia.

O’Neil acknowledged that the measure alone will not solve Australia’s housing crisis, but emphasized that government policies must focus on helping Australians secure homes, particularly young first-time buyers.

She noted that in the 2022-2023 financial year, foreign buyers purchased around 1,800 existing homes, and the ban is expected to free up at least double that number over the next two years.

Certain large-scale developments will be exempt from the restrictions.

According to The Sydney Morning Herald, projects involving at least 20 residential buildings will still be eligible for foreign investment.

Data from the Australian Taxation Office shows that between July 2022 and June 2023, foreign investors purchased 5,360 residential properties with a total value of A$4.9 billion (US$3.1 billion), including 1,823 existing homes.

The new policy is expected to redirect housing supply toward local buyers while limiting external speculation in the property market.