March 2025 – Hannah Phelps
Australia Imposes Temporary Ban on Foreign Purchases of Established Dwellings
In a measure to address housing affordability and availability, on 16 February 2025, the Australian Government announced significant changes to its foreign investment policies regarding residential properties. The new measures include a temporary ban on foreign purchases of established dwellings.
Details of the Ban
The ban will be in effect from 1 April 2025 to 31 March 2027, prohibiting foreign persons, including temporary residents and foreign-owned companies, from purchasing established dwellings in Australia.
Exemptions from Ban
There are exemptions to the Ban, including investments that are expected to significantly contribute to the housing supply or improve the availability of housing in the country. Additionally, purchases made under the Pacific Australia Labour Mobility (PALM) scheme will be allowed.
The new policy also maintains existing exceptions for certain groups. These include:
- Permanent residents
- New Zealand citizens
- Spouses of Australian citizens, permanent residents, or New Zealand citizens (if the property is purchased as joint tenants)
Future Reviews and Enforcement
The government has announced that a review will be conducted to assess whether the Ban should be extended beyond 31 March 2027.
To enforce the new regulations, the government will implement enhanced screening processes for foreign investment proposals related to residential properties. A full audit of current foreign investment approvals for vacant residential land development will be carried out.
Please contact our friendly and knowledgeable team at Harris Freidman Lawyers so we can help you understand how these changes might affect you.