Australia Ban Foreign Buyers from Purchasing Completed Homes Starting April 1

Starting April 1, 2025, the Australian government will prohibit foreign buyers from purchasing completed residential properties for a minimum of two years. This measure aims to address the ongoing surge in housing prices and to increase housing supply for local residents, particularly in Sydney, where property prices have risen nearly 70% over the past decade.

This ban reflects the government’s commitment to tackling housing affordability issues and seeks to provide more opportunities for local buyers. Finance Minister Jim Chalmers and Housing Minister Julie O'Neill announced that the ban will remain in effect until March 31, 2027, with the possibility of extension depending on market conditions. They estimate that this policy could free up about 1,800 homes annually for local buyers, helping them to enter the housing market more easily.

As the federal election approaches, housing issues have become a key concern for voters, especially younger ones who are worried about their ability to purchase property. The rising cost of housing has significantly contributed to the overall increase in living expenses in Australia. Recent polls indicate that the ruling Labor Party is falling behind the opposition Liberal Party in public support, making housing and living costs critical topics in the upcoming election.

The government’s housing reform measures include offering tax incentives to developers to alleviate cost pressures, with a goal of constructing 1.2 million new homes by 2030. However, despite the introduction of the new ban, its impact on prices may be limited. According to the Australian Taxation Office, foreign investors purchased residential properties worth AUD 4.9 billion in the year leading up to June 30, 2023. Buyers from mainland China and Hong Kong remain significant foreign investors, although their purchasing amounts have declined, partly due to higher costs for foreign buyers.

A similar situation is occurring in Canada, where the government has announced an extension of its ban on foreign home purchases until 2027. This policy, which took effect on January 1, 2023, aims to ensure that housing is prioritized for Canadian residents and does not become a target for speculative financial investment.

In summary, this new measure by the Australian government underscores its focus on the housing market and aims to ease housing pressure on residents by increasing supply for local buyers.

_{Source: Singtao News}