Foreign home purchase ban: big news, small Impact?

Written By Hugo Chow

Australia implemented a temporary two-year ban on foreign purchases of existing homes which started on April 1, 2025. The idea is to free up more houses for Australians by restricting temporary residents and foreign companies from buying established properties.

But will it make a big difference to the housing market? According to insights from realestate.com.au, probably not much.

Here's why:

  • Small Numbers: Data shows foreign buyers were involved in only about 1% of property sales between July 2022 and June 2023.

  • Focus on Established Homes: Only a third of those foreign purchases were for the type of existing homes targeted by the ban.

The takeaway? While the ban targets foreign investment, it's unlikely to significantly ease housing pressure or make homes much more affordable on its own. The real challenge remains boosting the overall housing supply through faster construction and initiatives that add significantly more homes to the market.

Hugo Chow
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