Ban on Foreign Purchases of Established Dwellings in Australia

7 July 2026 | Written by Mitchell Bailey | Conveyancing & property, Personal law

Introduction

The Australian Government has announced that the temporary ban on foreign persons purchasing established residential dwellings will now remain in place until 30 June 2029.

The ban originally commenced on 1 April 2025 for a 2-year period ending on 31 March 2027. However, as part of the 2026–27 Federal Budget, the Government extended the ban by a further 2 years and 3 months.

The measure is designed to improve housing affordability by reducing overseas competition for existing homes and directing foreign investment into new housing supply.

If you are a foreign investor, or a seller dealing with an overseas buyer, it is important to understand how these rules operate and the limited exceptions that apply.

What is a “foreign person”?

The term foreign person is broad and can apply to individuals, companies, trusts and other entities.

A foreign person may include:

an individual who is not ordinarily resident in Australia;
a temporary resident, including a person on a student or work visa;
a foreign-owned company; or

a trust or entity where foreign interests hold substantial ownership or control. For individuals, the rules can depend on citizenship, visa status and whether the person is ordinarily resident in Australia. For companies, trusts and other entities, the rules may depend on ownership and control.

Because the rules are complex, anyone unsure of their status should seek legal advice before entering into a transaction.

What counts as an “established dwelling”?

An established dwelling is generally a residential property that already exists and has previously been occupied, such as a house, apartment or townhouse that is not brand new.

From 1 April 2025 until 30 June 2029, foreign persons are generally prohibited from purchasing established residential dwellings in Australia unless a limited exception applies. This includes temporary residents purchasing an established dwelling to use as their principal place of residence.

Instead, foreign investment is intended to support housing supply and development opportunities, including:

new or near-new residential dwellings,
off-the-plan properties,
vacant residential land (subject to development conditions),
redevelopment projects that significantly increase housing supply, and
developments supporting worker accommodation and housing availability; and
certain Build to Rent developments.

Foreign persons will generally require Foreign Investment Review Board (FIRB) approval before acquiring residential land in Australia, regardless of value.

Key exceptions to the ban

The following persons are generally not affected by the ban and may still purchase established dwellings:

Australian citizens,
Australian permanent residents who are ordinarily resident in Australia,
New Zealand citizens who are ordinarily resident in Australia, and
certain spouses purchasing property jointly with an Australian citizen, permanent resident or eligible New Zealand citizen.

Other limited exceptions may apply where the investment significantly increases housing supply, supports the availability of housing on a commercial scale, or falls within another approved exception.

Why the ban exists

The restrictions were introduced to:

improve affordability for Australians,
reduce demand pressures on existing homes,
channel foreign investment into new construction and development, and
support growth in the building and construction industry.

The Australian Taxation Office will continue enforcing the ban through enhanced screening of foreign investment proposals relating to residential property.