Australia Announces Two-Year Ban on Foreign Purchases of Existing Homes

The policy aims to address housing affordability concerns but is expected to have a limited impact on the overall market.

The Albanese government will prohibit foreign investors from buying established residential properties starting April 1, 2025, through March 31, 2027.
Exceptions will be made for new housing developments and workers under the Pacific Australia Labour Mobility scheme to encourage housing supply.
Foreign buyers account for less than 1% of annual home purchases, raising questions about the policy's effectiveness in alleviating housing affordability issues.
The Australian Taxation Office will receive additional funding to enforce the ban and ensure compliance with land development timelines for foreign-owned vacant land.
Housing affordability and cost-of-living concerns are central to the upcoming general election, with both major political parties now supporting similar housing policies.