The Australian government has announced a two-year ban on foreign entities purchasing existing residential properties, a move aimed at addressing the country's housing affordability crisis, reports ABC.
"Today, the government is announcing that we are going to ban foreign ownership of existing property in Australia," Housing Minister Clare O’Neil told Sky News on Sunday, calling it a crucial step. "There is no silver bullet to the housing crisis, but given the pressures Australians face today, we need to prioritize security and homeownership for more young Australians."
Set to take effect on April 1, the ban will prevent foreign-owned companies and temporary residents from acquiring established homes. However, large-scale developments with at least 20 properties will be exempt.
According to O’Neil, foreign buyers purchased around 1,800 existing homes in the 2022-23 financial year. "Over two years, this policy will effectively double that number of homes made available to Australians," she said.
Government data from the Australian Taxation Office shows that between July 2022 and June 2023, foreign buyers were involved in 5,360 residential real estate purchases, amounting to USD 3.1 billion. Of these, 1,823 were existing dwellings.
The policy underscores the government’s broader strategy to ease housing shortages and promote local homeownership amid rising property prices.
Bd-pratidin English/ Jisan
