Australians Back Ban on Foreign Ownership of Existing Housing
Chinese buyers raid Australian property
The majority of Australians support a ban on non-citizens purchasing housing stock, arguing that it drives up prices and limits availability for locals. In response to these concerns, the federal government has announced that, from 1 April 2025, temporary residents will be prohibited from purchasing established dwellings for two years.
Previously, temporary residents could apply for approval to buy an existing home to live in during their stay or redevelop an established home to increase housing stock. Under the new regulations, only Australian citizens and permanent residents will be permitted to purchase existing homes, while non-residents will be limited to buying newly built properties or off-the-plan developments.
Real estate industry professionals predict a surge in applications to the Foreign Investment Review Board (FIRB) in the lead-up to the ban. Fiona Yang from Plus Agency noted that many Chinese buyers see this as their last opportunity to enter the market. “Many agents are using the ban as a selling point, urging buyers to move quickly,” she said.
Belle Property director Robert Ding and OH Property Group’s Henny Stier also anticipate a short-term spike in foreign investment before the restrictions take effect. However, Sydney real estate agent Jason Roach argues that the ban will have minimal impact, as most of his foreign clients already hold permanent residency. “I couldn’t tell you the last time I sold an existing home to a buyer needing FIRB approval,” he stated.
While temporary residents are not the primary driver of rising house prices, their participation in the market adds demand pressure. Restricting them to purchasing new properties could boost housing supply and stimulate development. However, critics argue that a two-year ban is insufficient and should be made permanent.
Recent polling from Resolve Political Monitoring found that 67% of Australians support a permanent ban on foreign ownership of established housing. Many believe non-permanent residents should rent rather than compete with locals for housing.
Ultimately, the best solution to Australia’s housing crisis is to reduce immigration and focus on attracting high-quality, skilled migrants. With the Centre for Population projecting a 4.1 million increase in Australia’s population over the next decade, housing demand will continue to outstrip supply, exacerbating affordability issues unless decisive action is taken.
I live in Mentone Melbourne, in December 2020, a person buying for a Singapore company brought a house for $2 Million, it was knocked down and 2 units built on the block at more than $2 million each, at the time of purchase we were told that the buyer had brought 16 other properties for people living in Singapore in the previous 3 months.
I support the argument that non-Australians should not be permitted to purchase housing anywhere in Australia, regardless of their reason for wanting to. This covers New Housing or having a contract to build a home here, as well as the second owner or more owners of a premises/home. Only citizens with permanent residence or those who are Australian Citizens by Birth or Naturalisation be permitted to purchase /contract, or acquire a home or premises.
I am not a solicitor, but I understand and know how wealthy Chinese and others are moving their money and assets out of communist countries into ours for future use and take over. The silent Invasion.
Gary Burgess.
March 4/3/25.
Agree with everything you have proposed Ken, but shouldn’t this have happened years ago when it was first suggested, I wonder what happened there?
The Pollies, then and since, have been using the lame excuse that the purchase of homes/houses here in Australia is a means of getting investment from overseas. If foreign companies/people want to invest in Australia, there are plenty of opportunities on the stock market for them to do so. There is no clear or sound reason that the property market should be hiked out of the reach of the average working couple. But try and tell a conniving Pollie that.
Agree with Ken Taylor. I’m aware of wealthy Chinese that send funds to younger family residing permanently in Australia, to purchase property here. As an example, a neighbouring property was purchased a year ago via wealthy Chinese parents resident in China, with funds directed to one of their permanent Australian family living here, with those funds being channeled to Oz via a New York, USA, bank (to conceal the origins ??), to enable the property purchase (as a defacto ??) in the one permanents name.
So, the requirement of a “Permanent Residency”, is not a barrier either. The Asians are smart enough to circumvent, by whatever means, the weak restrictions our Pollies put in place and they are not backward in pursuing their aims. The controls put in place need to be much tougher if we want our kids to have any chance of having a go at home ownership.