Foreign Buyers Surge Ahead of Australian Property Ban
The Australian property market is seeing a surge in foreign buyer activity as investors rush to secure homes ahead of a significant policy shift. The latest data from the Foreign Investment Review Board (FIRB) confirms that buyers-particularly from China-are moving quickly to purchase residential properties before a new government restriction comes into effect.
Foreign Investment on the Rise
In the September quarter alone, Chinese buyers were approved for $400 million in residential real estate purchases, while buyers from Hong Kong and Taiwan contributed another $200 million combined. This accounts for nearly half of the quarter’s total $1.3 billion in approved foreign investments.
Understanding the New Restrictions
The Australian Government’s policy change, set to take effect on April 1, will prohibit temporary residents from purchasing existing homes for the next two years. However, permanent residents remain exempt, and the ban does not apply to new dwellings. This means that while some investors are rushing to secure properties before the deadline, others may shift their focus to new developments instead.
Will the Ban Impact the Market?
While foreign investment is often a talking point in the australian property market, it represents only a small fraction of overall transactions. In the last financial year, just 1,123 approvals were granted for foreign residential purchases-compared to 663,000 total residential sales.
Some experts believe this ban may have limited long-term effects. “The majority of buyers of Chinese heritage that I deal with have permanent residency,” said Jason Roach of The Agency, highlighting that demand in key markets is unlikely to shift dramatically.
However, short-term activity is expected to spike. “You will have a significant increase in FIRB transactions, as they want to catch the last train,” said Fiona Yang of Plus Agency.
What This Means for Buyers and Investors
For foreign buyers who qualify under current rules, the next few weeks may be crucial to securing an existing home. For local investors and sellers, this surge in demand could present a unique opportunity to achieve strong sale prices before the policy shift takes full effect.
At SFP Financial, we’re committed to keeping our clients informed about major market changes. If you’re looking to navigate this evolving landscape-whether as a buyer, seller, or investor-we’re here to help. Contact us today to discuss your options and make the most of current market conditions.
Book a 15-minute phone meeting with our Senior Mortgage Broker, Leigh to discuss your options.
