Australia to ban foreign investors from buying existing houses for two years – Times of India

The Australian government has announced a two -year ban on foreign investors buying existing houses, aimed at addressing housing strength concerns. The ban was set to be effective from April 1, 2025 to March 31, 2027, reflecting a similar proposal introduced by the alliance last year.
According to The Guardian, Housing Minister Claire O’Neel said that while the remedy is not “Silver Bullet”, it is an important part of Labor’s broad housing strategy.
“This is not a silver tablet, because there is no silver tablet,” O’Neel said. “But it is an important piece of the large -scale housing agenda of the labor”, O’Neill said.
Foreign investors, including international students and foreign owned companies, will be banned from obtaining residential properties established during the period. However, they will still be allowed to invest in newly constructed houses to encourage housing supply. Workers of Pacific Visa Scheme will also be exempted from the ban.
Additionally, the government has planned to curb land banking by foreign investors, requiring them to develop vacant land within a stipulated time frame.
Sydney Morning Herald reported that in 2022-23, foreign buyers were responsible for 5,360 residential real estate purchase, of which only one third of which were existing housing. Property Council Executive Matthew Kandelars said that the strength could have a minimum impact when limiting foreign investment in existing homes, focus on new growth was a positive step.
“It is pleasing that the two major parties have admitted that the construction of new houses is the most important way, which our nation will address its housing strength challenge,” said Kandelars.
The policy follows a similar announcement by opposition leader Peter Datton in May 2024. At that time, Treasurer Jim Chalmers criticized the proposal, called it “without thinking -without”, while Labor Minister Bill Shorton reported that less than 5,000 Australian houses were purchased by foreigners. Investors in the last two years.
However, on Sunday, O’Neel defended the Labor’s approach, saying, “I really don’t care about its politics. Whatever we do at the residence is about receiving more Australians in our homes, and this change will play a role in it. ,
The government has allocated $ 1.4 million annually to the Australian Taxation Office (ATO) to implement the ban and increase foreign investment screening. Additionally, the Guardian reported that ATOs and Treasury will receive $ 2.2 million per year by 2029–30 to increase auditing and compliance efforts against land banking by foreign investors and $ 1.9 million per year by 2029–30.
Despite the intentions of the policy, experts question its impact on overall housing strength. As reported by Sydney Morning Herald, polling since January 2024 indicated that 69% of the voters supported the alliance’s approach, assuming that it would help local buyers enter the market.
Datton continues to criticize the Albanis government to deal with the housing crisis, arguing that the increase in migration without adequate house construction has deteriorated.
“This is not just a cost-living crisis, it is a housing crisis that the government has not built many people and built enough houses,” Datton said.
With an election on the horizon, the housing policy is expected to remain an important issue, both major parties ranked themselves as the best option to deal with Australia’s ability crisis.