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
Foreign buyers can legally purchase property in Perth, but significant restrictions and mandatory government approvals make the process more complex than for Australian citizens.
As of June 2025, foreigners face a two-year ban on buying established homes and must navigate FIRB approval, higher stamp duties, and stricter lending conditions when investing in Perth's residential 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 can buy new builds and off-the-plan properties in Perth with FIRB approval, but established homes are banned until 2027.
Foreign buyers pay a 7% stamp duty surcharge and face stricter mortgage conditions with 30-40% deposits typically required.
| Key Aspect | Requirements for Foreigners | Costs/Restrictions |
|---|---|---|
| Property Types Allowed | New builds, off-the-plan, vacant land | Established homes banned 2025-2027 |
| Government Approval | FIRB approval mandatory | AUD 14,100+ application fee |
| Stamp Duty | Standard WA rates + 7% surcharge | Significantly higher than residents |
| Mortgage Access | Limited lender options | 30-40% deposit, higher rates |
| Physical Presence | Not required - can buy remotely | Legal representation recommended |
| Popular Areas | City Beach, Subiaco, South Perth | Median prices $800K-$2.5M+ |
| Ongoing Obligations | Land tax, compliance with FIRB conditions | Additional annual costs |
Can foreigners legally buy property in Perth or are there restrictions compared to Australian citizens?
Yes, foreigners can legally buy property in Perth, but face significant restrictions compared to Australian citizens.
Foreign buyers must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing any residential property. This mandatory approval process includes application fees, processing times of up to 30 days, and ongoing compliance requirements that don't apply to Australian citizens or permanent residents.
The most significant restriction is the limitation on property types. As of April 2025, foreigners are banned from purchasing established (previously owned) homes for at least two years, except in rare circumstances involving redevelopment that increases housing stock. This ban significantly reduces the available property pool compared to what Australian citizens can access.
Foreign buyers also pay a 7% stamp duty surcharge on top of standard Western Australia stamp duty rates, making property purchases substantially more expensive than for local buyers.
It's something we develop in our Australia property pack.
Do I need to be a resident, temporary visa holder, or have any special status to purchase property in Perth?
You do not need to be an Australian resident or hold any specific visa to buy property in Perth as a foreigner.
Your residency status does affect what types of properties you can purchase and the approval process requirements. Non-residents face the most restrictions, while temporary visa holders may have slightly different conditions attached to their FIRB approval.
Australian permanent residents and New Zealand citizens are exempt from most foreign buyer restrictions and don't require FIRB approval. Temporary residents with valid visas can typically buy one established home for personal residence with FIRB approval, though this is currently suspended due to the established home ban.
The key distinction is between foreign persons (who need FIRB approval) and Australian citizens/permanent residents (who don't). Your visa status primarily affects the conditions attached to your approval rather than your eligibility to apply.
What types of properties can foreigners buy in Perth — is it limited to new builds, off-plan, or can I buy established homes too?
Foreigners can buy new builds, off-the-plan apartments, and vacant land for development, but cannot purchase established homes.
The April 2025 ban on foreign purchases of established dwellings means you cannot buy previously owned houses or apartments. This restriction applies for at least two years and significantly limits your options compared to the pre-2025 market.
Available property types include new dwellings that have never been occupied, off-the-plan developments where construction hasn't been completed, and vacant residential land where you commit to building a new dwelling within FIRB-specified timeframes.
Rare exceptions to the established home ban exist for redevelopment projects that demonstrably increase housing stock, but these require special FIRB consideration and are not readily available to most foreign buyers.
Investment in new apartment complexes and house-and-land packages remains the primary avenue for foreign property investment in Perth's residential market.
Are there government approvals required, like FIRB, and how does that process work?
FIRB approval is mandatory for all foreign buyers purchasing residential property in Perth, with no exceptions.
| Process Step | Requirements | Timeline |
|---|---|---|
| Online Application | Personal details, financial information, property specifics | Submit before signing contract |
| Documentation | Passport, proof of funds, visa status | Must be current and certified |
| Application Fee | Varies by property value (AUD 14,100 for properties up to $1M) | Paid upon application |
| Processing | FIRB assessment and background checks | Up to 30 days standard |
| Approval Letter | Conditional approval with specific requirements | Valid for 12 months typically |
| Compliance | Meet all conditions (residency, construction deadlines) | Ongoing monitoring |
| Penalties | Fines or forced sale for non-compliance | Immediate upon breach |
Don't lose money on your property in Australia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Do I need to be physically present in Perth or Australia during the buying process, or can I do it remotely?
You can complete the entire property purchase process remotely without being physically present in Perth or Australia.
The FIRB application, contract negotiations, mortgage applications, and settlement procedures can all be managed through local representatives including real estate agents, lawyers, conveyancers, and mortgage brokers.
Digital document signing, electronic fund transfers, and online communication make remote purchasing practical and legally valid. Your legal representative can attend settlement on your behalf and handle all required paperwork.
Many foreign buyers successfully purchase Perth properties while remaining in their home countries throughout the entire process. The key is engaging experienced local professionals who understand foreign buyer requirements and can navigate the process efficiently.
Remote purchasing is particularly common among investors who plan to rent out their Perth properties rather than occupy them personally.
What are the step-by-step procedures for a foreigner to buy property in Perth, including documents needed and timelines?
The foreign buyer process follows a specific sequence that typically takes 2-3 months from property search to settlement.
1. **Check eligibility and property type restrictions** (immediate)2. **Obtain FIRB approval** - submit application with passport, financial statements, and property details (up to 30 days)3. **Secure mortgage pre-approval** if financing - provide income documentation and FIRB approval (2-4 weeks)4. **Property search and inspection** - work with local agents (ongoing)5. **Make formal offer** - conditional on FIRB approval if not already obtained (immediate)6. **Engage lawyer or conveyancer** for contract review and settlement (within days of offer acceptance)7. **Sign contract and pay deposit** - typically 10% of purchase price (within cooling-off period)8. **Finalize mortgage approval** and arrange settlement funds (2-6 weeks)9. **Settlement day** - final payment, title transfer, key handover (as per contract)10. **Post-settlement compliance** - register ownership, arrange insurance, comply with FIRB conditions (immediate)**Essential documents include**: passport and ID verification, FIRB approval letter, proof of funds and bank statements, visa or immigration status documentation, mortgage pre-approval documentation, signed purchase contract, and legal representation agreements.The timeline can extend if FIRB approval faces delays or if financing proves challenging due to foreign buyer lending restrictions.
Is hiring a local lawyer or conveyancer mandatory when purchasing property in Perth as a foreigner?
Hiring a lawyer or conveyancer is not legally mandatory in Western Australia, but it's strongly recommended for foreign buyers.
The complexity of foreign buyer regulations, FIRB compliance requirements, and unfamiliarity with Australian property law make professional legal assistance practically essential. Local legal professionals understand the specific requirements for foreign buyers and can prevent costly mistakes.
Conveyancers handle standard property transfers and are typically less expensive than lawyers, while property lawyers provide more comprehensive legal advice and can handle complex situations or disputes that may arise.
Most experienced Perth property professionals recommend foreign buyers engage legal representation to ensure all documentation is correct, compliance requirements are met, and their interests are protected throughout the purchase process.
The cost of legal representation (typically AUD 1,000-3,000) is minimal compared to the potential losses from legal errors or compliance failures in a foreign property market.
Can foreigners get a mortgage from Australian banks to buy in Perth, and what are the typical rates, conditions, and tips for approval?
Foreigners can obtain mortgages from some Australian banks and non-bank lenders, but face significantly stricter requirements than local buyers.
Most lenders require 30-40% deposits from foreign buyers compared to 10-20% for Australian citizens. Interest rates are typically 0.5-1.5% higher than standard rates, and loan-to-value ratios are capped at 60-70% maximum.
Major banks like ANZ, Westpac, and NAB offer foreign buyer programs, while specialist non-bank lenders often provide more flexible options. Pre-approval is essential before property searching, as financing options can change rapidly.
Key approval tips include providing comprehensive financial documentation from your home country, obtaining FIRB approval before mortgage applications, demonstrating stable income sources, and working with mortgage brokers experienced in foreign buyer lending.
It's something we develop in our Australia property pack.
Currency fluctuations can significantly impact loan servicing, so many foreign buyers hedge exchange rate risk or choose shorter loan terms to minimize exposure.
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 all the taxes, stamp duties, FIRB fees, and ongoing costs involved in buying and eventually selling property in Perth as a non-resident?
Foreign buyers face multiple additional costs beyond the standard property purchase price.
| Cost Type | Amount/Rate | When Payable |
|---|---|---|
| FIRB Application Fee | AUD 14,100 (properties up to $1M), higher for more expensive properties | Upon FIRB application |
| Stamp Duty | Standard WA rates plus 7% foreign buyer surcharge | Upon settlement |
| Land Tax | Annual tax based on property value, with additional foreign owner surcharges | Annually |
| Metropolitan Region Improvement Tax | 0.14% for land over $300,000 in metro Perth | Upon settlement |
| Legal/Conveyancing | AUD 1,000-3,000 typically | Upon settlement |
| Building/Pest Inspections | AUD 400-800 | Before contract signing |
| Capital Gains Tax | Higher rates for non-residents on property sale profits | Upon property sale |
Ongoing annual costs include council rates, strata fees for apartments, property insurance, maintenance, and property management fees if renting out the property to tenants.
Which areas in Perth are most popular among foreigners to live or invest, and what are the current gross rental yields, tourism numbers, and growth forecasts?
Foreign buyers typically target Perth's premium coastal and inner-city suburbs for lifestyle and investment potential.
City Beach, Cottesloe, and Nedlands attract expatriates and foreign investors seeking luxury coastal living, with median prices ranging from $2-2.5 million for houses. These areas offer strong rental demand from corporate executives and affluent tenants.
South Perth and Subiaco appeal to foreign buyers wanting proximity to the CBD, with median house prices around $1.2-1.4 million. East Perth provides apartment investment opportunities with median prices from $800,000 and strong rental yields from city workers.
Gross rental yields across Perth typically range from 4-6% annually, with apartments often achieving higher yields than houses. The combination of international students, skilled migrants, and FIFO workers supports consistent rental demand.
Perth property prices are forecast to rise 5-10% in 2025, with several suburbs expected to reach or exceed the $1 million median price threshold. The city's resources sector recovery and population growth support positive medium-term forecasts.
How do property prices in different regions of Perth compare — can you give a rough breakdown of average prices by suburb or district?
Perth property prices vary significantly by location, with coastal and inner-city suburbs commanding premium prices.
| Suburb | Median House Price (2025) | Market Segment |
|---|---|---|
| City Beach | $2,500,000+ | Premium coastal |
| Cottesloe | $2,300,000+ | Premium coastal |
| Nedlands | $2,000,000+ | Premium inner-city |
| Subiaco | $1,400,000+ | Established inner-city |
| South Perth | $1,200,000+ | Riverside premium |
| Connolly | $995,000 | Emerging coastal |
| Lathlain | $994,500 | Inner-city fringe |
| North Lake | $990,000 | Southern suburbs |
| East Perth (apartments) | $800,000+ | City living |
Many suburbs including Connolly, Lathlain, and North Lake are forecast to join Perth's "million-dollar club" during 2025, reflecting strong price growth across the metropolitan area.
What are the most common mistakes foreigners make when buying in Perth, and how can they avoid these traps?
The most costly mistake is proceeding without proper FIRB approval, which can result in heavy fines or forced sale at below-market prices.
1. **Assuming all property types are available** - many foreigners don't realize established homes are banned and waste time viewing unsuitable properties2. **Underestimating total costs** - failing to budget for the 7% stamp duty surcharge, FIRB fees, and ongoing foreign owner taxes3. **Not using local professionals** - attempting to navigate contracts, compliance, and settlement without expert Perth market knowledge4. **Mortgage assumptions** - expecting similar lending terms to their home country and not preparing for higher deposits and rates5. **Ignoring currency fluctuations** - not considering how exchange rate movements can significantly impact the final purchase cost and ongoing paymentsPrevention strategies include always obtaining FIRB approval before signing contracts, engaging reputable local lawyers or conveyancers, getting comprehensive cost breakdowns including all foreign buyer surcharges, securing mortgage pre-approval with realistic expectations, and consulting tax advisors about ongoing obligations.
Working with real estate agents experienced in foreign buyer requirements and staying updated on changing regulations helps avoid costly compliance failures in Perth's dynamic property market.
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 buyers can successfully purchase new properties in Perth despite significant restrictions and additional costs compared to Australian citizens.
The April 2025 ban on established home purchases, mandatory FIRB approval process, and 7% stamp duty surcharge create substantial barriers that require careful planning and professional guidance to navigate effectively.
Sources
- Experts for Expats - How to Buy Property in Australia as a Foreigner
- Mozo - Can Foreigners Buy Property in Australia
- Australian Taxation Office - Types of Property Foreign Persons Can Buy
- NerdWallet Australia - Can Foreigners Buy Property in Australia
- K&L Gates - Foreign Investment Rule Changes April 2025
- Home Loan Experts - Non-Resident Mortgages
- Ensure Legal - Understanding FIRB Guide
- Abundance Global - FIRB Requirements
- Wise - Buying Property in Australia
- Real Estate Business - Perth Million Dollar Club 2025