Foreign Investors Beware: The 2-Year Ban on Buying Australian Homes

In a bold move to address housing affordability and boost local homeownership, the Australian Government has introduced a two-year ban on foreign investors purchasing existing residential properties. This headline-making policy is already sending shockwaves through the real estate market—and if you’re a business owner, developer, or foreign investor, this new restriction could significantly impact your investment strategy.

So, what does the ban really mean, and how will it affect property markets, taxation, and broader investment plans?

Let’s take a closer look.

🏘️ What Is the 2-Year Ban All About?

Effective from 2025, the Federal Government is implementing a two-year moratorium on the sale of established residential properties to non-resident foreign buyers.

This policy is designed to:

• Free up housing stock for Australian citizens and permanent residents

  
  

• Ease pressure on home prices by reducing competition

  
  

• Encourage foreign investment in new property developments, rather than existing housing

While the intention is to boost housing supply and affordability, the implications for foreign investors and businesses involved in property are significant.

🌍 Who Does It Affect?

The ban specifically targets non-resident foreign investors—those who do not hold permanent residency or citizenship in Australia. Here’s who needs to take notice:

• Overseas investors seeking to expand property portfolios in Australia

  
  

• Real estate businesses and agents that rely on foreign investment flows

  
  

• Developers and builders who market to international buyers

  
  

• Tax advisors and consultants assisting foreign nationals with asset planning

Importantly, the ban does not apply to new builds or off-the-plan developments, which remain a viable option for overseas buyers.

📉 Impact on the Property Market

1. Slower Demand in Key Cities

Cities like Sydney, Melbourne, and Brisbane—popular hotspots for foreign investors—may see a temporary dip in demand, especially in the premium existing housing market.

2. Shift Toward New Builds

With restrictions on existing homes, foreign capital will likely flow toward new developments, potentially driving growth in construction and infrastructure.

3. Rental Market Pressure

Reduced investment in existing homes could limit available rental properties in certain areas, placing upward pressure on rental prices unless supply is quickly replenished.

4. Implications for Business Strategy

Businesses in construction, development, and real estate need to pivot their marketing and funding strategies to remain competitive and compliant.

📊 Tax and Compliance Considerations

Foreign investors will need to work closely with accounting professionals to:

• Reassess investment portfolios and navigate changing legal frameworks

  
  

• Understand capital gains tax (CGT) implications for current holdings

  
  

• Plan for alternative asset classes or new development opportunities

  
  

• Stay compliant with Foreign Investment Review Board (FIRB) rules

If your business involves international investors, this is the time to review contracts, restructure partnerships, and ensure future transactions meet all legal requirements.

💼 How Worldwide Advisory Can Help

At Worldwide Advisory, we specialise in working with local and international clients to navigate complex tax, compliance, and investment regulations. Whether you’re a foreign investor, developer, or business adviser, we offer:

✅ Tailored investment strategy sessions

✅ Tax and compliance reviews aligned with FIRB updates

✅ Legal structure and entity planning

✅ Ongoing support to stay ahead of regulatory changes

📞 Let’s Talk Strategy

Don’t let sudden policy shifts derail your investment goals. We’ll help you plan, adapt, and thrive in the changing property landscape.

Call Worldwide Advisory on +617 3180 1684 or Email contact@worldwideadvisory.au to book a confidential consultation.