THE AUSTRALIAN GOVERNMENT TURNS THE BUYING OF OLD HOME FOR FOREIGN INVESTORS IN THE NEXT 2 YEARS

MAP: Faced with the tense housing supply situation, the Australian Government officially banned foreign investors from buying old houses for at least two years. At the same time, strengthen supervision to limit speculation in vacant land from foreign investors.

“We prohibit the purchase of old homes for foreign investors from April 1, 2025 to March 31, 2027,” this is the latest joint statement between Minister of Finance Jim Chalmers and Australian Minister of Housing Clare O’Neil on February 16.

Accordingly, this ban takes effect from April 1, 2025, and applies to all foreign investors (including temporary residents such as international students or foreign companies). Some exceptions include investments that contribute to increasing housing supply, as well as investments serving the PALM program.

Australia is currently facing a housing challenge. The launch of this initiative is a small but significant part of a broader housing agenda focused on boosting new housing supply to help more people own their homes.

Along with the temporary ban on buying old houses, the Australian Government also emphasized strictly handling land speculation to free up land funds to build new housing.

Now, when buying vacant land in Australia, foreign investors must comply with the conditions for buying to build within the appropriate prescribed time.

The ban on foreign investors buying old houses and vacant land, closely monitored by the ATO and the Ministry of Finance, promises to reduce real estate speculation from foreign investors, bringing many benefits to the country.

The ATO and Treasury will publish specific policy guidance before these changes come into effect.

Source: Ministers Treasury portfolio. 2025. Albanese Government clamping down on foreign purchase of established homes and land banking