The Australian dream of property ownership extends far beyond its citizens and permanent residents. However, in February 2025 the Federal Government announced a temporary ban on temporary residents and foreign owned companies buying established dwellings. So, does this mean that only Australian Citizen or Permanent Residents can buy property in Australia? In short no but it is governed by strict rules designed to ensure foreign investment serves the national interest, primarily by increasing housing stock. Understanding these nuanced regulations is the essential first step for any foreign buyer looking to invest.
Who needs approval to buy residential property?
Anyone that isn’t one of the following:
- an Australian citizen;
- a New Zealand citizen with a special category visa;
- the holder of an Australian permanent resident visa; or
- an individual purchasing property as joint tenants with their Australian citizen spouse, New Zealand citizen spouse or Australian permanent resident spouse.
Please note that in some circumstances a permanent resident who is not ordinarily a resident in Australia may be a foreign person.
What type of residential property can a foreign person receive approval to buy?
- a new dwelling or a near new dwelling – this means a property that is built on residential land, has not been previously occupied for more than 12 months total, if it was previously sold by the developer that transaction must have failed to settle
- an off-the-plan property – this means a unit or dwelling that has yet to be constructed.
- vacant residential land – this means residential land that does not have any structure on it and you will build a residential dwelling within four years.
Focus on New Dwellings and Vacant Land
Non-residents are generally limited to purchasing new dwellings or vacant residential land. This policy ensures that foreign capital contributes to the housing supply rather than competing with Australian residents for existing homes. If vacant land is purchased, a strict condition is imposed: construction of a residential dwelling must be completed within four years of the approval date. This compulsory development clause prevents speculative land banking.
Beyond Price: The Cost of Foreign Buyer Surcharges
Beyond the purchase price, foreign buyers must also pay the FIRB Application fee, which is calculated based on the value of the property which increases each year, so it is important to check the fees at the time of applying.
Additional Foreign Acquirer Duty (AFAD)
In addition to paying the Transfer Duty imposed on all purchases Foreign Buyers will also need to pay but beware this charge will also apply if you are a non Australian Resident and buying with your spouse.
Securing Your Investment with NB Property Law
The landscape of foreign property ownership in Australia is not static; it is a system of checks and balances that evolves with economic and housing policy. Recent reforms and periodic reviews mean that what was permissible last year may now be restricted. For this reason, relying on accurate, up-to-the-minute legal advice is essential for any foreign investor seeking to enter the Australian market.
At NB Property Law, our experienced team specialises in helping foreign investors and temporary residents navigate Australia’s complex property regulations. From assessing your eligibility and managing the Foreign Investment Review Board (FIRB) application process to ensuring that every contract condition complies with current laws, we provide clarity at every stage.
Our expertise also extends to calculating state-based duties and surcharges with precision, so you can budget confidently and avoid costly surprises. By engaging NB Property Law from the moment you consider an investment, you gain a partner dedicated to safeguarding your compliance, protecting your interests, and ensuring your purchase proceeds seamlessly and securely.