Foreign Investment Restrictions in Australia: What Property Buyers Need to Know

Jun 19, 2025

Many global investors have always been attracted to the Australian property market because of its steady returns, clear laws and good living conditions. As a result of increasing affordability issues and security concerns, the Australian government has recently put in new strict rules for foreign investments in housing.

Whether you’re a foreign buyer or simply interested in how international investment impacts markets, here’s a simple guide for you.

Who Is Considered a Foreign Investor?

Basically, anyone with a temporary visa or no Australian citizenship is a foreign investor. This includes:

Temporary residents
Foreign nationals living overseas
Foreign-owned corporations and trusts

Anyone in the categories mentioned who wishes to purchase residential property must fulfil certain requirements.

What Restrictions Are in Place?

Investors from other countries are not allowed to buy all types of Australian properties. So, they should:

You should apply for FIRB approval before making a purchase.
You should avoid buying an unfinished property unless you plan to develop it.
Make sure to sell the property if the person’s visa status changes or if they leave the country for good.
In Victoria, New South Wales and Queensland, you have to pay an additional contribution known as stamp duty.

It’s a way to use foreign investments to build more homes instead of boosting demand for what is already there.

Why These Rules Exist?

The purpose of the restrictions is to:

Lower the inflation rate in Sydney and Melbourne.
Pay more attention to local people who are having trouble purchasing a home because of the high housing costs.
Support development activities instead of speculative behaviour.
Such things should always be monitored to keep national interests and security secure.

Since rents and home values remain high in 2025, people and policymakers continue to debate these policies.

What Can Foreign Investors Buy?

If you’re interested in investing, these are your top picks:

Apartments or townhouses are available before construction.
Residential land available for building (must be built on within four years)
Houses that have just been completed and have not found buyers.
Commercial properties have their own rules and are commonly less restricted than other types of properties.

The plan is to ensure that foreign investment benefits housing availability, instead of reducing it.

FIRB Approval: What You’ll Need

You need to be approved by the FIRB before you can buy property in Australia.

Background information about a person or a company
How likely a person is to buy and what they want in a home
Fees for the application depend on the value of the property being transferred

You should expect approval within 30–40 days, and fees will be somewhere between $14,100 and $1 million, depending on what the property is worth.

Impact on Australia’s Real Estate Market

The change in these rules has reduced investor buying in capital cities and helped steer development in other locations. Some say the policies are stopping foreigners from buying and limiting foreign capital, but others believe they’ve opened the door to housing for locals, mainly those buying a home for the first time.

Australia is viewed as a good choice for large overseas investors in commercial markets, mainly because of its reliable yields and dependable political system.

Conclusion

Even though foreigners can buy property in Australia, the process is not simple. With proper information, support and suitable property types, foreign investors have chances to improve the housing market and benefit from Australia’s real estate strength. It is important to talk to a professional who understands FIRB rules before completing any purchase.