SUMMARY
- A two-year ban on foreign purchases of established Australian homes will be in effect from April 1st, 2025, to at least March 31st, 2027.
- This restriction does not apply to permanent residents, New Zealand citizens, or spouses of Australian citizens, permanent residents, or New Zealand citizens.
Recent policy changes have significantly reshaped the Australian residential property market for foreign investors.
Effective April 1st, 2025, a two-year ban has been implemented, restricting foreign purchases to newly constructed dwellings.
This strategic move by the Australian government seeks to alleviate housing pressures and prioritize homeownership for Australian citizens and permanent residents. While this policy introduces limitations on established property acquisitions, it simultaneously encourages investment in the development of new housing stock, contributing to the expansion of Australia’s residential infrastructure.
For foreign investors, this shift necessitates a revised approach to property investment. The ability to purchase newly developed properties remains a viable avenue, albeit with specific conditions.
Notably, developments comprising fifty or more units are subject to a fifty percent foreign ownership cap, safeguarding local buyer participation and ensuring a balanced market dynamic. It is imperative for investors to recognize the associated financial obligations, which include the Additional Foreign Acquirer Duty (AFAD) and Foreign Investment Review Board (FIRB) application fees. These costs, along with potential vacancy fees for properties left unoccupied for extended periods, underscore the importance of meticulous financial planning and a thorough understanding of the regulatory framework.
Navigate Australia recognizes the complexities inherent in these regulatory changes and offers comprehensive guidance to foreign investors seeking to navigate the Australian property market.
Our expertise includes identifying suitable new residential investment opportunities, facilitating FIRB applications and clarifying AFAD and other related costs.
For many years, Navigate Australia has been developing a co-development model for foreign investors, helping them realise their aspirations of owning property in Australia within the current regulatory environment and at significant cost savings.
Contact us to explore investment options for foreign investors and leverage our expertise to achieve your Australian property ownership goals.
