In a significant move affecting the property market, the Australian Government has announced a temporary ban on foreign investors purchasing established homes, effective from 1 April 2025 to 31 March 2027.
This policy is part of a broader strategy to curb foreign land banking and increase housing availability for local buyers.
What’s Changing?
From 1 April 2025:
- Foreign investors, including temporary residents and foreign-owned companies, will be prohibited from purchasing established residential properties.
- Limited exemptions may apply, but will be tightly restricted and subject to approval.
What About Vacant Land?
Foreign investors will still be allowed to purchase vacant residential land, but strict development conditions will apply. Investors must ensure the land is used productively within a reasonable timeframe, discouraging long-term land banking or speculation.
Why This Matters
This change may:
- Reduce demand for established properties, particularly in metropolitan areas
- Increase scrutiny and compliance obligations for foreign-owned entities in real estate
- Impact development planning for offshore investors and developers
If you work with international partners or are planning future property investments, now is the time to assess how this policy may affect your strategy.
Need Guidance?
If you or your business are involved in property investment, particularly cross-border or foreign-owned structures, our team can help you navigate the changing regulatory landscape. Contact our team on 07 3367 3155 or at support@walkerhill.com.au.
