Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
Australia allows foreigners to purchase property, but with significant restrictions that have become even stricter since April 2025.
The Australian government has implemented a temporary ban on foreign purchases of established dwellings until March 2027, while still allowing investments in new properties and vacant land with proper approvals. Understanding these rules, along with the substantial fees and complex approval processes, is crucial for any foreign investor considering the Australian property market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Foreigners face a temporary ban on buying established homes in Australia until March 2027, but can still purchase new properties and vacant land with FIRB approval.
The Foreign Investment Review Board approval is mandatory for all foreign property purchases, with fees that can exceed AUD 100,000 for high-value properties, plus additional foreign owner surcharges and stamp duty.
| Property Type | Foreign Purchase Status | Requirements |
|---|---|---|
| Established Dwellings | Banned until March 2027 | Limited exemptions only |
| New Properties | Allowed | FIRB approval required |
| Vacant Land | Allowed | FIRB approval + development conditions |
| Off-the-Plan | Allowed | FIRB approval required |
| Investment Properties | New only | Must increase housing supply |
| Redevelopment Projects | Case by case | Must prove housing supply increase |
Can foreigners buy the same types of properties as Australians?
Foreigners cannot buy the same types of properties as Australian citizens and permanent residents due to significant government restrictions.
As of September 2025, the Australian government maintains a temporary ban on foreign purchases of established residential dwellings, which runs until March 31, 2027. This means foreigners cannot buy existing homes, apartments, or townhouses that have been previously owned or occupied.
Foreigners can only purchase new properties, including off-the-plan developments, newly constructed homes, and vacant land designated for residential development. These purchases must still receive Foreign Investment Review Board (FIRB) approval and meet specific conditions that demonstrate they will increase Australia's housing supply.
Limited exemptions to the established dwelling ban exist for investments that significantly increase housing supply at a commercial scale, redevelopment projects that add substantial new dwellings, or purchases under specific schemes like the Pacific Australia Labour Mobility program.
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Do I need government approval before purchasing property?
Yes, all foreigners must obtain Foreign Investment Review Board approval before purchasing any residential property in Australia.
The FIRB approval process requires you to submit a detailed application for each specific property you intend to purchase. You cannot apply for blanket approval to buy multiple properties or properties in general - each application must specify the exact property address, purchase price, and your investment intentions.
FIRB fees are substantial and increase with property value. For properties valued under AUD 1 million, fees typically start around AUD 2,520, but can exceed AUD 100,000 for high-value properties above AUD 10 million. The approval process usually takes around 30 days from submission of a complete application.
You must have your FIRB approval in place before signing any purchase contract or making any financial commitments. Purchasing property without FIRB approval can result in forced sale of the property and significant financial penalties.
The application requires detailed information about your financial situation, intended use of the property, visa status, and how the purchase aligns with Australia's housing supply objectives.
What visa or residency status do I need to own property?
No specific visa grants automatic property ownership rights in Australia, and property investment does not provide a pathway to permanent residency.
Temporary visa holders with more than 12 months remaining on their visa can apply to purchase property, but face the same restrictions as other foreigners. This includes tourist visas, student visas, work visas, and business visas - all are treated equally under foreign investment rules.
Permanent residents and Australian citizens have full property ownership rights and can purchase established dwellings without restrictions. New Zealand citizens also enjoy similar privileges due to special bilateral agreements between the countries.
Your visa status affects the types of properties you can buy but doesn't change the fundamental approval requirements. Whether you hold a temporary work visa or are a complete non-resident, you'll still need FIRB approval for any property purchase and face the same restrictions on established dwellings.
The key distinction is that permanent residents and citizens can buy established homes freely, while all temporary visa holders and non-residents are limited to new properties only, regardless of their specific visa type.
Do I need to be physically present in Australia to buy property?
Physical presence in Australia is not required to purchase or manage property - all transactions can be completed remotely.
You can conduct the entire property purchase process from overseas using qualified legal representatives, conveyancers, or licensed real estate agents acting on your behalf. These professionals can handle property inspections, contract negotiations, FIRB applications, and settlement procedures without your physical presence.
Digital signatures and electronic document processing enable most paperwork to be completed online. Bank transfers for deposits and final payments can be arranged through international wire transfers, and property inspections can be conducted via virtual tours or by appointed representatives.
Property management after purchase can also be handled remotely through professional property management companies. These services typically charge 6-12% of rental income and handle tenant relations, maintenance, rent collection, and compliance with local regulations.
However, being physically present or having local representation does provide advantages for due diligence, market understanding, and building relationships with local professionals who can assist with ongoing property management and future investment decisions.
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What are the taxes, fees, and ongoing costs for foreign property owners?
Foreign property owners in Australia face significantly higher costs than local buyers through various taxes, surcharges, and ongoing fees.
| Cost Type | Amount/Rate | When Applied |
|---|---|---|
| FIRB Application Fee | AUD 2,520 - 100,000+ | Before purchase |
| Foreign Buyer Stamp Duty Surcharge | 3-8% (varies by state) | At purchase |
| Regular Stamp Duty | 3-5.5% of purchase price | At purchase |
| Foreign Owner Land Tax Surcharge | 0.5-4% annually | Annual if property vacant or not primary residence |
| Absentee Owner Land Tax | 2% annually | If not Australian resident for tax purposes |
| Council Rates | AUD 1,000-5,000 annually | Ongoing annual cost |
| Capital Gains Tax | Up to 32.5% | When selling property |
Can foreigners get mortgages from Australian banks?
Some Australian banks offer mortgages to foreigners, but with significantly stricter conditions and higher costs than loans for residents.
Foreign borrowers typically face loan-to-value ratios capped at 60-70%, meaning you need a 30-40% deposit minimum compared to 10-20% for Australian residents. Interest rates are usually 0.5-1.5% higher than standard rates, and establishment fees can reach AUD 3,000-5,000.
Major lenders like ANZ, Westpac, and NAB have specific foreign buyer programs, but eligibility criteria are stringent. You'll need to demonstrate stable overseas income, substantial assets, excellent credit history in your home country, and often require income verification from certified accountants.
To improve approval chances, maintain clean financial records for at least two years, engage a mortgage broker experienced with foreign buyers, consider guarantor options if available, and have all documentation professionally translated and certified.
Alternative lenders and non-bank institutions may offer more flexible terms but at premium interest rates of 7-9% compared to standard rates of 5-6%. Many foreign buyers opt for cash purchases to avoid these lending complications entirely.
What documents do I need and is legal representation mandatory?
Foreign property purchases in Australia require extensive documentation, and while legal representation isn't mandatory, it's strongly recommended due to complex regulations.
Essential documents include: FIRB approval letter, passport and visa copies, proof of funds showing source of purchase money, signed purchase contract, bank statements from the past six months, income verification from certified accountants, and for mortgage applicants, detailed financial records including tax returns.
The step-by-step process involves: obtaining FIRB approval first, engaging a qualified conveyancer or lawyer, conducting property inspections and due diligence, negotiating and signing the purchase contract, arranging finance if required, completing the conveyancing process, and finalizing settlement with funds transfer.
Conveyancers typically charge AUD 1,200-2,500 for standard transactions, while lawyers charge AUD 2,000-5,000 but provide broader legal advice. Both can handle the complex regulatory requirements, contract reviews, and settlement procedures.
Professional legal representation becomes especially valuable for foreign buyers due to unfamiliarity with Australian property law, strata regulations, local council requirements, and ongoing compliance obligations that can result in significant penalties if mishandled.
It's something we develop in our Australia property pack.
Which cities are most attractive for foreign property investment?
Sydney, Melbourne, and Brisbane remain the most attractive cities for foreign property investment, offering strong rental demand, capital growth potential, and lifestyle amenities.
Sydney continues to attract foreign buyers despite high entry costs, with median house prices around AUD 1.2 million and apartments around AUD 850,000 as of September 2025. The city offers strong rental yields in areas like Parramatta, Liverpool, and inner-west suburbs, plus excellent infrastructure and job markets.
Melbourne provides slightly more affordable entry points with house prices averaging AUD 950,000 and apartments around AUD 650,000. The city's strong population growth, excellent universities, and cultural attractions make it particularly appealing for both investment and lifestyle purposes.
Brisbane has emerged as a strong growth market with house prices around AUD 750,000 and apartments at AUD 500,000. The city benefits from interstate migration, infrastructure development including the 2032 Olympics preparations, and strong rental demand from both local and international tenants.
Perth and Adelaide offer more affordable entry points and higher rental yields, with Perth experiencing a mining industry resurgence and Adelaide benefiting from defense industry growth and affordable lifestyle appeal.
Where do foreigners typically settle compared to local preferences?
Foreigners concentrate heavily in major metropolitan areas and prestigious coastal regions, while Australian residents show broader geographic distribution across regional centers and affordable suburbs.
Foreign buyers typically focus on inner-city areas of Sydney (Eastern Suburbs, North Shore), Melbourne (inner-south and east), and Brisbane (inner-city and riverside suburbs). Popular areas include Sydney's Double Bay and Bondi, Melbourne's South Yarra and Toorak, and Brisbane's New Farm and Fortitude Valley.
International investors often prioritize proximity to CBDs, prestigious schools, waterfront locations, and areas with established international communities. This creates concentrated demand in high-value postcodes where properties often exceed AUD 1.5 million.
Australian residents show more diverse settlement patterns, including regional cities like Geelong, Newcastle, Wollongong, and Gold Coast. Locals prioritize affordability, school zones, commuting convenience, and family-friendly neighborhoods over prestige locations.
This difference creates price premiums in foreign-favored areas while potentially offering better value in regions preferred by local buyers but overlooked by international investors.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the latest market rankings and forecasts for Australian cities?
Melbourne and Sydney consistently rank among the world's most liveable cities, while Brisbane, Perth, and Adelaide show stronger capital growth forecasts for 2025-2026.
Liveability rankings as of September 2025 place Melbourne 3rd globally, Sydney 4th, Adelaide 12th, and Perth 14th according to the Economist Intelligence Unit. These cities excel in healthcare, education, infrastructure, and cultural amenities, making them attractive for both residents and investors.
Rental yields vary significantly across cities, with Adelaide and Perth offering the highest gross yields at 4.5-5.5%, while Sydney and Melbourne provide lower yields of 3.0-4.0% but stronger capital growth potential. Brisbane sits in the middle with yields around 4.0-4.5%.
Capital growth forecasts for 2025-2026 predict Brisbane leading with 8-12% growth, Perth following with 6-10%, and Adelaide maintaining steady 5-8% increases. Sydney and Melbourne are expected to show more modest growth of 3-6% as markets stabilize after recent rapid increases.
Tourism numbers remain robust in key destinations, with Sydney receiving 16 million visitors annually, Melbourne 14 million, and Brisbane 12 million, supporting short-term rental markets and hospitality-related property investments.
How much does property cost across major Australian cities?
Property costs vary dramatically across Australian cities, with Sydney commanding the highest prices and regional centers offering more affordable entry points.
| City | Median House Price | Median Apartment Price |
|---|---|---|
| Sydney | AUD 1,200,000 | AUD 850,000 |
| Melbourne | AUD 950,000 | AUD 650,000 |
| Brisbane | AUD 750,000 | AUD 500,000 |
| Perth | AUD 650,000 | AUD 450,000 |
| Adelaide | AUD 600,000 | AUD 400,000 |
| Gold Coast | AUD 850,000 | AUD 550,000 |
| Canberra | AUD 900,000 | AUD 650,000 |
What are common mistakes foreigners make when buying Australian property?
The most common and costly mistake is attempting to purchase property without proper FIRB approval, which can result in forced sale and substantial penalties.
Many foreign buyers underestimate the total cost of ownership, failing to account for foreign buyer stamp duty surcharges (3-8% additional), ongoing land tax surcharges, absentee owner charges, and capital gains tax implications that can significantly impact investment returns.
Inadequate due diligence on local markets leads to poor location choices. Foreign buyers often focus solely on prestigious addresses without considering rental demand, vacancy rates, body corporate fees for apartments, or future development plans that might affect property values.
Financing mistakes include not securing pre-approval before property hunting, underestimating deposit requirements (30-40% for foreign buyers), and not factoring in higher interest rates and establishment fees that can add tens of thousands to borrowing costs.
Many foreigners attempt remote purchases without qualified local representation, leading to contract issues, missed settlement deadlines, or failure to identify property defects that become expensive problems later. Professional guidance from experienced conveyancers, mortgage brokers, and property managers is essential for successful Australian property investment.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign property investment in Australia requires careful navigation of complex regulations, substantial upfront costs, and ongoing compliance requirements that have become more restrictive since the 2025 temporary ban on established dwelling purchases.
Success depends on thorough market research, professional legal and financial guidance, and realistic assessment of the higher costs and limited property types available to foreign buyers in the current regulatory environment.
Sources
- Australian Taxation Office - Banning Foreign Purchases of Established Dwellings
- Holding Redlich - Australia Tightens Foreign Investment Rules
- GGI - Temporary Ban on Foreign Ownership of Housing in Australia
- BDO - Understanding Foreign Property Ownership in Australia
- Create VIC - How to Get FIRB Approval
- Taxes for Expats - Can Foreigners Buy Property in Australia
- Doconade - Guidelines for Temporary Visa Holders
- Odin Mortgage - Property Purchase and Permanent Residency