New Housing Measures: Temporary Ban on Foreign Investors to Ease Market Pressure

May 2, 2025

With the Australian Government's recent ban on foreign investors purchasing established homes, we share some insights into the changes and what it means for Australians and foreign investors.

The Australian Government has announced new measures aimed at easing pressure on Australia’s housing market. With effect from 1 April 2025, foreign investors (including temporary residents and foreign owned companies) will be temporarily banned from purchasing established dwellings for two years, until 31 March 2027. This is part of the government’s broader strategy to increase housing supply and make homes more accessible for Australians.

Key Changes:

1. Temporary Ban on Foreign Purchases

Foreign investors will no longer be able to buy established homes during this period, with limited exceptions, such as investments that significantly boost housing supply or support specific programs like the Pacific Australia Labour Mobility (PALM) scheme.

2. Stronger Compliance Measures

The government will invest $5.7 million over four years to strengthen the Australian Taxation Office’s (ATO) compliance efforts, ensuring the ban is enforced and that foreign investments meet legal requirements.

3. Crackdown on Land Banking

The government will also target foreign land banking, where investors buy vacant land without developing it. An additional $8.9 million will be allocated to enhance compliance and prevent delays in housing and commercial development.

These initiatives are part of the Australian government’s broader $32 billion housing plan aimed at increasing the availability of homes in Australia. Whether these measures are implemented will likely depend upon the result of the upcoming Federal election.

What this means for you:

If you’re an Australian buyer, these measures aim to ease competition and improve housing availability; if you're a foreign investor, it’s important to seek advice early to navigate the new restrictions and compliance requirements.  

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Connie Edwards

Associate

Connie's practice focuses primarily on property, commercial and corporate matters.

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