Australian Government Tightens Rules on Foreign Investment in Established Housing

MAP: In response to the strained housing supply, the Australian government has announced a ban on foreign investment in established homes for at least two years. The government will also increase scrutiny to curb land banking by foreign investors.

“We’re banning the purchase of established homes by foreign investors from 1 April 2025 to 31 March 2027,” Treasurer Jim Chalmers and Housing Minister Clare O’Neil announced in a joint statement on February 16.

The ban, effective from 1 April 2025, applies to all foreign investors, including temporary residents such as international students and foreign companies. However, some exemptions will be granted for investments that increase the housing supply or support the PALM (Pacific Australia Labour Mobility) program.

Australia is currently facing a housing crisis. This initiative is a small but significant part of a broader housing agenda focused on boosting the new housing supply to help more people own their own homes.

In addition to the temporary ban on the purchase of established homes, the Australian government is cracking down on land banking to free up land for new housing construction.

From now on, foreign investors purchasing vacant land in Australia must meet strict conditions to ensure timely development.

The ban on foreign investors buying established homes and vacant land will be closely monitored by the Australian Taxation Office (ATO) and the Treasury Department to prevent speculative investments and deliver broader economic and social benefits.

The ATO and Treasury will release detailed policy guidelines before the new regulations are enacted.

Source: Minister’s Treasury Portfolio. 2025. Albanese Government Clamping Down on Foreign Purchase of Established Homes and Land Banking.