The Australian government has introduced a two-year ban on foreign investors purchasing existing homes, effective from April 1, 2025, as part of its strategy to combat the country’s housing affordability crisis.
Announced by Housing Minister Clare O’Neil, the restriction aims to prioritize local buyers by freeing up properties amidst rising home prices, particularly affecting young Australians. The ban applies to foreign investors, temporary residents such as international students, and foreign-owned companies, and will be reassessed in March 2027 to determine whether to extend the policy.
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O’Neil emphasized the government’s focus on making homeownership more accessible to Australians, noting that the housing shortage has been worsened by a lack of new homes over the past 30 years.
In addition to the ban, the government has introduced measures to curb “land banking,” requiring foreign investors to develop vacant land within a specified timeframe, with the goal of increasing housing supply.
While experts argue that the ban may have a limited impact on property prices—since foreign investors account for only a small percentage of the market—the move reflects growing political attention on housing affordability. In 2022-23, foreign investors made 5,360 residential purchases, with just a third involving existing homes.
The policy comes ahead of national elections, with both government and opposition parties focusing on housing affordability as a key issue. O’Neil acknowledged that the ban is just one part of the government’s broader housing agenda but highlighted its importance in addressing the crisis.
