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Foreigners can buy land in Australia, but significant restrictions apply as of September 2025.
The Australian government implemented a temporary ban on foreign purchases of established dwellings from April 2025 to March 2027, while still allowing purchases of vacant land, new dwellings, commercial land, and farmland with proper FIRB approval. Understanding these regulations is crucial for international investors considering Australian real estate opportunities.
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Foreign land purchases in Australia require FIRB approval and come with strict conditions, including development requirements for vacant land and higher taxes for non-residents.
While established dwellings are banned until 2027, foreigners can still invest in vacant residential land, new properties, commercial land, and farmland with proper documentation and approval processes.
| Land Type | Foreign Buyer Eligibility | Key Requirements |
|---|---|---|
| Established Dwellings | Banned (2025-2027) | Only rare exemptions for large developments |
| Vacant Residential Land | Allowed | Must build within 4 years, FIRB approval required |
| New Dwellings | Allowed | FIRB approval and compliance with conditions |
| Commercial Land | Allowed | FIRB approval, extra restrictions near sensitive areas |
| Farmland | Allowed | FIRB approval, 30-day advertisement requirement |
Can foreigners buy land in Australia?
Yes, foreigners can buy land in Australia, but with significant restrictions as of September 2025.
The Australian government implemented a temporary ban on foreign purchases of established dwellings from April 1, 2025, to March 31, 2027. This ban applies to existing homes and apartments that have been previously occupied.
However, foreigners can still purchase vacant residential land for development, new dwellings, commercial land, and farmland. All these purchases require approval from the Foreign Investment Review Board (FIRB) before completion. The key requirement is that any land purchase must serve a productive purpose rather than speculation.
Joint purchases with Australian citizens or permanent residents may be exempt from some restrictions, depending on the ownership structure and the citizen's involvement in the transaction.
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What types of land can foreigners buy in Australia?
Foreigners can purchase several types of land in Australia, each with specific conditions and approval requirements.
| Land Type | Availability to Foreigners | Special Conditions |
|---|---|---|
| Vacant Residential Land | Allowed with FIRB approval | Must commence construction within 4 years |
| New Dwellings | Allowed with FIRB approval | Property must be newly constructed or off-the-plan |
| Commercial Land | Allowed with FIRB approval | Additional restrictions near sensitive government areas |
| Agricultural Land | Allowed with FIRB approval | Must be advertised to Australian buyers for 30 days first |
| Industrial Land | Allowed with FIRB approval | Subject to national interest considerations |
| Established Dwellings | Banned (2025-2027) | Only rare exemptions for large-scale developments |
Are there any restrictions on foreign ownership of land?
Foreign ownership of land in Australia faces several restrictions designed to ensure productive use and protect national interests.
The most significant restriction is the temporary ban on established dwelling purchases, which prevents foreigners from buying existing homes and apartments. This measure aims to increase housing availability for Australian residents.
For vacant residential land, foreigners must commit to developing the property within four years of purchase. Failure to meet development timelines can result in forced sale orders and financial penalties. The land cannot be resold until construction is completed and a certificate of occupancy is issued.
Agricultural land purchases require a 30-day advertising period to Australian buyers before foreign purchase approval. Commercial land near sensitive government facilities or critical infrastructure faces additional security assessments.
All foreign-owned properties are subject to vacancy fees if left unoccupied, and ongoing land tax surcharges apply in most states, typically ranging from 0.75% to 5% annually depending on the state and property value.
Do foreigners need approval from the Foreign Investment Review Board (FIRB) to buy land?
Yes, all foreign buyers must obtain FIRB approval before purchasing any type of land in Australia, with very limited exemptions.
The FIRB application process requires detailed documentation including proof of identity, source of funds, intended use of the property, and development plans for vacant land. Applications must be submitted online through the Foreign Investment Review Board portal.
Processing times typically range from 30 to 90 days, depending on the complexity of the application and type of land being purchased. Agricultural and commercial land purchases often require longer assessment periods due to national interest considerations.
FIRB approval comes with specific conditions that must be met throughout the ownership period. These conditions are legally binding and failure to comply can result in forced divestment orders, where the government requires the sale of the property.
The approval is property-specific and cannot be transferred to different land purchases, meaning each transaction requires separate FIRB authorization.
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What are the steps involved in purchasing land in Australia as a foreigner?
Purchasing land in Australia as a foreigner involves several mandatory steps that must be completed in the correct sequence.
1. **Obtain FIRB approval** before signing any contracts or making deposits. Submit your application with all required documentation and pay the application fee, which ranges from AUD 4,000 to AUD 150,000 depending on the land value and type.2. **Secure financing arrangements** if needed. Foreign buyers typically need 20-30% deposits and face stricter lending criteria from Australian banks. Not all lenders offer mortgages to non-residents.3. **Engage professional services** including a qualified conveyancer or solicitor, building inspector for developed properties, and certified translator for non-English documents if required.4. **Sign the contract of sale** after FIRB approval is granted. This typically involves paying a 10% deposit and agreeing to settlement terms, usually 30-90 days from contract signing.5. **Complete due diligence** including property inspections, title searches, and verification of development approvals for vacant land. Ensure all zoning and building restrictions are understood.6. **Arrange settlement** through your legal representative, including final payment, stamp duty payment, and title transfer. Registration with the local land titles office completes the purchase process.What documents do foreigners need to provide when buying land in Australia?
Foreign buyers must provide comprehensive documentation to satisfy both FIRB requirements and standard property purchase procedures.
Identity documentation includes a valid passport, government-issued photo identification, and visa or residency status documentation if applicable. All foreign-language documents must be translated by certified translators and authenticated by appropriate authorities.
Financial documentation requires bank statements showing source of funds, tax returns from your home country, proof of income, and mortgage pre-approval letters if financing is involved. The Australian Taxation Office may require a Tax File Number application for ongoing tax obligations.
Legal documentation includes power of attorney if purchasing remotely, FIRB approval certificate, and proof of professional representation through qualified Australian legal practitioners. Development plans and building approvals are necessary for vacant land purchases.
Additional requirements may include police clearance certificates for certain high-value transactions, business registration documents for corporate purchases, and insurance policies covering the property during and after settlement.
It's something we develop in our Australia property pack.
Can you buy land in Australia without being physically present in the country?
Yes, foreigners can successfully purchase land in Australia without being physically present during the entire process.
Remote purchases require appointing a qualified Australian legal representative with power of attorney to act on your behalf. This representative can sign contracts, attend settlements, and handle all legal requirements during the transaction process.
Digital technology enables virtual property inspections through video tours, drone footage, and live virtual walkthroughs conducted by qualified property professionals. Electronic contract signing through platforms like DocuSign is legally accepted for Australian property transactions.
Banking arrangements can be established remotely through major Australian banks that have international operations, though this may require additional verification procedures and higher deposit requirements.
FIRB applications and approvals are conducted entirely online, making remote submission straightforward. However, all documentation must be properly certified and authenticated through Australian consulates or authorized certification services in your home country.
What are the typical uses for land bought by foreigners in Australia?
Foreign buyers typically use Australian land for specific productive purposes that align with FIRB approval requirements.
Vacant residential land must be developed for housing construction, either for personal residence, rental investment, or resale after completion. The government actively monitors compliance with development timelines and prohibits speculative land banking.
New dwelling purchases serve as investment properties for rental income, holiday homes for personal use, or future permanent residences for foreigners planning to relocate to Australia. These properties can be legally rented to both Australian residents and other foreigners.
Commercial land purchases typically support business operations, including retail developments, office buildings, industrial facilities, or mixed-use projects. These investments often align with visa requirements for business and investor migration programs.
Agricultural land serves farming operations, wine production, livestock grazing, or agribusiness ventures. Many foreign agricultural investors also use these purchases to support export businesses to their home countries.
All land uses must comply with local zoning regulations and FIRB conditions, with regular reporting requirements to ensure ongoing compliance with approval terms.
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What are the average prices for land in different regions of Australia?
Land prices in Australia vary significantly across regions, with major capital cities commanding the highest premiums as of September 2025.
| Region | Median Land Price (2025) | Price Trend |
|---|---|---|
| Sydney | AUD 666,670 | Strong growth, premium market |
| Melbourne | AUD 402,750 | Steady growth, diverse options |
| Brisbane/SE Queensland | AUD 417,250 | Rising demand, infrastructure growth |
| Perth | AUD 328,750 | Recovery phase, mining influence |
| Adelaide | AUD 307,250 | Affordable entry point, stable growth |
| Regional Australia Average | AUD 673,373 | Premium lifestyle locations commanding high prices |
Sydney remains the most expensive market due to limited land supply, strong population growth, and international demand. Melbourne offers more diverse price points with better value in outer growth corridors.
Regional Australia can command premium prices in lifestyle locations such as coastal areas, wine regions, and areas with strong tourism appeal. Agricultural land prices vary significantly based on soil quality, water access, and proximity to processing facilities.
Where do foreigners typically buy land in Australia?
Foreign buyers concentrate their land purchases in specific regions that offer strong growth potential and infrastructure development.
Major capital cities attract the highest foreign investment, particularly Sydney's growth corridors in the northwest and southwest, Melbourne's outer suburbs with new infrastructure projects, and Brisbane's emerging areas benefiting from Olympic Games preparation and Cross River Rail development.
Growth corridors and emerging suburbs receive significant foreign attention due to government infrastructure investment, new transport links, and planned community developments. These areas often offer better value while maintaining capital growth potential.
Coastal regions and lifestyle destinations attract foreign buyers seeking holiday homes or future retirement properties. The Gold Coast, Sunshine Coast, and premium coastal areas in Western Australia and South Australia see consistent foreign interest.
Agricultural regions popular with foreign investors include wine-producing areas in South Australia, cattle grazing areas in Queensland and New South Wales, and horticultural regions with established export markets to the investor's home country.
Commercial land purchases often focus on major business districts, industrial precincts near ports and airports, and retail developments in high-growth population areas.
Can foreigners obtain a mortgage to buy land, and what are the conditions?
Foreigners can obtain mortgages to buy land in Australia, but face significantly stricter conditions than Australian residents.
Major Australian banks including Commonwealth Bank, Westpac, ANZ, and NAB offer foreign buyer programs, though not all lenders participate in this market. Foreign buyers typically need minimum deposits of 20-30%, compared to 10-20% for Australian residents.
Interest rates for foreign buyers are generally 0.25-0.75% higher than standard variable rates, and loan-to-value ratios are capped at 70-80% for most lenders. Income verification requirements are more stringent, often requiring certified translations and verification through international accounting firms.
Acceptable income sources include employment income from multinational companies, business income with established international operations, and investment income from verifiable sources. Some lenders require Australian bank accounts and credit history establishment before approval.
Additional conditions include mandatory mortgage insurance for high loan-to-value ratios, ongoing residency and income reporting requirements, and restrictions on loan purposes. Vacant land purchases face additional scrutiny with requirements for detailed development plans and construction timelines.
It's something we develop in our Australia property pack.
What taxes, fees, and costs are associated with buying land as a foreigner in Australia?
Foreign land buyers face substantial upfront and ongoing tax obligations that significantly exceed costs for Australian residents.
FIRB application fees range from AUD 4,000 for properties under AUD 1 million to over AUD 150,000 for high-value commercial or agricultural land. These fees are non-refundable regardless of approval outcome.
Stamp duty includes standard state-based rates plus foreign buyer surcharges. New South Wales charges a 9% foreign buyer surcharge, Victoria 8%, Queensland 7%, Western Australia 7%, and South Australia 7%. These surcharges apply to the total purchase price.
Ongoing land tax surcharges apply in most states, ranging from 0.75% to 5% annually. New South Wales land tax surcharge increases to 5% by 2025, making it the highest in Australia. These taxes apply to the unimproved land value annually.
Vacancy fees apply to unoccupied foreign-owned properties, typically calculated as double the annual FIRB application fee. Properties must be occupied or genuinely available for rent for at least 183 days per year to avoid these penalties.
Capital gains tax withholding applies to property sales, with buyers required to withhold 12.5-15% of the sale price for properties sold by foreign residents. Legal and conveyancing fees typically range from AUD 1,500 to AUD 5,000 depending on transaction complexity.
What is the long-term forecast for the Australian land market, and are there any risks involved?
The Australian land market presents mixed long-term prospects with both opportunities and significant risks for foreign investors.
Market fundamentals remain strong with continued population growth, infrastructure investment, and economic stability supporting land values. Premium locations in major cities and established regional centers are likely to maintain value growth over the long term.
Government policy risk represents the most significant concern for foreign investors. The current ban on established dwellings could be extended beyond 2027, and additional restrictions on foreign land ownership may be implemented based on political and economic conditions.
Compliance costs continue rising with increasing surcharges, vacancy fees, and reporting requirements. Foreign investors face higher holding costs than ever before, potentially affecting investment returns and forcing earlier exit strategies.
Market adjustment risks include potential price corrections if foreign demand decreases significantly, interest rate increases affecting borrowing costs, and supply increases from major housing developments reducing land scarcity premiums.
Long-term opportunities exist in infrastructure growth corridors, renewable energy developments, and agricultural land supporting food security. However, successful investment requires careful compliance management, detailed market knowledge, and adequate capital reserves for ongoing obligations.
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 land ownership in Australia remains possible despite recent restrictions, offering opportunities for those who understand the complex regulatory environment.
Success requires careful planning, adequate capital for higher costs and taxes, and strict compliance with FIRB conditions and development requirements.
Sources
- Australian Taxation Office - Types of Property Foreign Persons Can Buy
- BambooRoutes - Buying Land in Australia as a Foreigner
- BDO Australia - Restricting Foreign Ownership of Housing
- Foreign Investment Review Board - Residential Land Guidance
- Hall & Wilcox - Australia Imposes Temporary Ban on Foreign Purchases
- Ensure Legal - Understanding FIRB Guide
- Urban Development Institute of Australia - State of the Land Report 2025
- ARE Property - Taxes and Fees for Foreign Property Buyers