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Foreigners can buy property in Perth, but the rules have become significantly more restrictive as of September 2025.
(The Australian government has implemented temporary bans on foreign purchases of established dwellings, limiting non-residents to new properties and vacant land with mandatory government approval through the Australian Taxation Office.)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.
Foreign buyers face strict restrictions in Perth's property market, with established dwelling purchases banned until March 2027 and mandatory ATO approval required for new properties.
The process involves higher costs including foreign buyer surcharges, stricter mortgage conditions, and complex regulatory compliance requirements.
| Aspect | Foreign Buyers | Australian Citizens/PR |
|---|---|---|
| Established Properties | Banned (April 2025 - March 2027) | No restrictions |
| New Properties | Allowed with ATO approval | No approval needed |
| Approval Fee | AU$5,700+ per property | N/A |
| Stamp Duty | Standard + 7% foreign surcharge | Standard rates only |
| Mortgage Deposit | 20-40% typically required | 5-20% typically |
| Capital Gains Tax | Applies to all gains | Primary residence exempt |
Can foreigners actually buy property in Perth, and how do the rules differ from what Australian citizens can do?
Foreigners can buy property in Perth, but face significantly stricter rules than Australian citizens as of September 2025.
The most important restriction is the temporary ban on established dwelling purchases. From April 2025 to March 2027, foreign buyers cannot purchase existing or second-hand properties in Perth or anywhere else in Australia. They can only buy new properties that have never been occupied or vacant land for development purposes.
All foreign property purchases require approval from the Australian Taxation Office (ATO), which took over this function from the Foreign Investment Review Board (FIRB). This approval process costs AU$5,700 for properties under AU$1 million, with higher fees for more expensive properties. Australian citizens, permanent residents, and New Zealand citizens face none of these restrictions and can buy both established and new properties without any government approval.
The only exception for foreigners is when they purchase jointly with an Australian citizen, permanent resident, or New Zealand citizen spouse as joint tenants. In this case, the foreign buyer may be exempt from the established dwelling ban.
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Do different nationalities face different restrictions or allowances when buying property in Western Australia?
No, different nationalities do not face varying restrictions when buying property in Perth or Western Australia.
The Australian government classifies all non-citizens as "foreign persons" regardless of their nationality, unless they are permanent residents or New Zealand citizens. This means someone from the United States faces the same restrictions as someone from China, Singapore, or the United Kingdom. The rules apply equally to all foreign nationals without discrimination based on country of origin.
There are no special bilateral agreements or treaties that give certain nationalities preferential treatment in the Perth property market. Whether you're from Europe, Asia, North America, or any other region, you'll need to follow the same process of obtaining ATO approval, paying the same fees, and adhering to the same property type restrictions.
The only distinction made is based on residency status rather than nationality - permanent residents and New Zealand citizens are not classified as "foreign persons" and therefore face no restrictions, while all temporary visa holders and non-residents are subject to the same foreign buyer rules.
What visa or residency status do I need in order to buy property, and does permanent residency change my options?
Your visa or residency status significantly impacts your property buying options in Perth, with permanent residency being the key differentiator.
If you hold any temporary visa (student visa, work visa, tourist visa) or are a non-resident, you are classified as a "foreign person" and must obtain ATO approval for every property purchase. This applies to all temporary visas regardless of duration - even if you have a multi-year work visa, you still need government approval and can only buy new properties or vacant land.
Permanent residency completely changes your options. Australian permanent residents are not classified as "foreign persons" and enjoy the same property buying rights as Australian citizens. This means you can buy both established and new properties without any government approval, avoid foreign buyer fees and surcharges, and have access to better mortgage terms.
New Zealand citizens also enjoy the same rights as Australian citizens due to special arrangements between the two countries. However, New Zealand permanent residents (who are not citizens) are still classified as foreign persons if they don't have Australian permanent residency.
Do I need to be physically present in Australia to complete the property purchase, or can it be handled remotely?
You do not need to be physically present in Australia to complete a property purchase in Perth - the entire process can be handled remotely.
The most common approach is to appoint someone with power of attorney to act on your behalf in Australia. This person can be a lawyer, licensed conveyancer, or trusted representative who can sign documents, attend settlements, and handle all necessary procedures. Many foreign buyers work with local legal professionals who specialize in remote property transactions.
All the key steps can be managed from overseas: submitting your ATO application online, signing contracts electronically or via courier, transferring funds through international banking, and even conducting property inspections through video calls or by appointing local representatives. Modern technology and established legal frameworks make remote property purchases routine for international buyers.
However, having local legal representation becomes even more important when buying remotely. A local conveyancer or solicitor can ensure all documentation is properly executed, deadlines are met, and compliance requirements are fulfilled without your physical presence.
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What is the exact step-by-step process of buying property as a foreigner in Perth, and which documents will I need along the way?
The property purchase process for foreigners in Perth follows a specific sequence that must include government approval before completion.
1. **Select an eligible property** - Only new properties (never previously occupied) or vacant land for development are allowed for foreign buyers as of September 2025.2. **Submit ATO application** - Apply for foreign investment approval online through the ATO website and pay the application fee (AU$5,700 for properties under AU$1 million).3. **Sign conditional contract** - Make your offer conditional on receiving ATO approval to protect yourself legally.4. **Obtain ATO approval** - Wait for government approval, which typically takes 30-60 days from application submission.5. **Pay deposit** - Once approved, pay the deposit (typically 10% of purchase price) to secure the property.6. **Complete due diligence** - Conduct building inspections, strata reports, and other property checks through local professionals.7. **Exchange contracts** - Finalize the purchase agreement and arrange remaining funds.8. **Settle transaction** - Complete the purchase and pay all required taxes and fees.Essential documents you'll need include: valid passport, current visa details, proof of funds and income source, proof of overseas residency status, signed purchase contract, ATO approval letter, Australian bank account details, and Tax File Number if available. If seeking a mortgage, additional financial documentation will be required by lenders.
Is it mandatory to hire a lawyer or conveyancer, and if not, why might it still be a smart idea?
Hiring a lawyer or conveyancer is not legally mandatory in Perth, but it's strongly recommended for foreign buyers due to the complexity and risks involved.
The foreign buyer approval process involves federal regulations, state property laws, and specific compliance requirements that can be difficult to navigate without professional expertise. A local legal professional ensures your purchase contract includes proper conditions (such as "subject to ATO approval"), helps avoid void contracts due to regulatory non-compliance, and manages the intricate timing requirements between approval and settlement.
Professional representation becomes even more valuable when buying remotely, as your lawyer or conveyancer can act with power of attorney, attend inspections, review strata documents, conduct title searches, and handle settlement procedures on your behalf. They also help identify potential issues like building defects, strata disputes, or title problems that could cost you significantly more than their fees.
Typical legal or conveyancing fees range from AU$1,200 to AU$2,500, which is relatively small compared to the potential costs of mistakes like contract breaches, missed deadlines, or purchasing non-compliant properties. The investment in professional legal help often pays for itself through avoided errors and smoother transactions.
What are the main taxes, fees, and hidden costs I should expect when buying and later reselling a property in Perth?
Foreign buyers in Perth face significantly higher costs than Australian citizens, with several mandatory fees and ongoing tax obligations.
| Cost Type | Amount | When Paid |
|---|---|---|
| ATO Application Fee | AU$5,700+ per property | Before purchase |
| Stamp Duty | Standard rate + 7% foreign surcharge | At settlement |
| Legal/Conveyancing | AU$1,200 - AU$2,500 | At settlement |
| Building Inspection | AU$400 - AU$800 | Before exchange |
| Land Tax (Annual) | Varies + foreign surcharge | Annually |
| Capital Gains Tax | Up to 45% of gains | Upon sale |
The foreign buyer stamp duty surcharge of 7% in Western Australia is particularly significant - on a AU$700,000 property, this adds AU$49,000 to your costs. Ongoing expenses include annual land tax with foreign owner surcharges, council rates, insurance, and strata fees for apartments.
When selling, foreign residents face Capital Gains Tax on the full gain from the property sale, with rates up to 45% depending on your tax situation. Unlike Australian residents, you cannot claim the primary residence exemption even if you lived in the property.
Can foreigners get a mortgage in Australia, what interest rates and conditions are typical, and what tips help improve approval chances?
Foreigners can obtain mortgages from Australian banks, but face stricter conditions and higher costs than local buyers.
Most major Australian banks have tightened their lending criteria for foreign buyers as of 2025. Non-residents typically need to provide deposits of 20-40% compared to 5-20% for Australian citizens. Interest rates are usually 0.5-1.5% higher than standard rates, and loan-to-value ratios are more conservative.
Several factors improve your approval chances: maintaining a larger deposit (30%+ is ideal), providing comprehensive income documentation from your home country, using international branches of Australian banks where you have existing relationships, and demonstrating a clean credit history. Some banks prefer borrowers who have Australian income sources or existing business connections.
Alternative lenders and non-bank institutions sometimes offer more flexible terms for foreign buyers, though often at higher interest rates. Working with a mortgage broker experienced in foreign buyer financing can help navigate the various lender requirements and find suitable options.
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Which areas of Perth and nearby regions are the most popular among foreigners, and why do they choose them?
Foreign buyers in Perth typically gravitate toward specific areas based on lifestyle preferences, investment potential, and practical considerations.
Central Perth suburbs like Crawley, Subiaco, and East Perth are highly popular among foreigners due to their proximity to the University of Western Australia, central business district, and excellent public transport connections. These areas appeal particularly to foreign buyers with children studying in Australia or those planning to work in Perth's CBD.
Coastal suburbs such as Scarborough and Cottesloe attract foreigners seeking the Australian beach lifestyle. These locations offer strong rental demand from both locals and other expatriates, making them attractive for investment purposes while providing excellent lifestyle amenities like beaches, restaurants, and recreational facilities.
Inner-northern suburbs including Leederville and Mount Lawley appeal to foreigners who want a vibrant urban lifestyle with short commutes to the city center. These areas offer a mix of character homes, modern apartments, and strong cultural scenes with cafes, bars, and entertainment options.
The choice often depends on the buyer's primary purpose - lifestyle-focused buyers prefer coastal and inner suburbs, while investment-focused buyers often choose areas near universities or employment hubs with strong rental demand.
Where are the best suburbs or regions in Perth for lifestyle, for strong rental yields, and for long-term capital growth according to the latest liveability indexes and forecasts?
Perth's suburbs offer different advantages depending on your priorities as a foreign buyer seeking lifestyle, rental returns, or capital growth.
For lifestyle purposes, Cottesloe, South Perth, and Fremantle consistently rank highest in liveability surveys. Cottesloe offers pristine beaches and upscale dining, South Perth provides river views and proximity to the city, while Fremantle combines heritage charm with cultural attractions. These suburbs score well for amenities, safety, and quality of life factors.
Strong rental yields are typically found in East Perth, Belmont, and Victoria Park. These suburbs benefit from high rental demand due to their proximity to universities, employment centers, and public transport. East Perth particularly attracts young professionals and students, while Belmont and Victoria Park offer more affordable rental options that appeal to a broader tenant base.
For long-term capital growth, Subiaco, Mount Lawley, and Como have historically performed well and continue to show promise. Subiaco benefits from ongoing urban renewal and excellent transport links, Mount Lawley offers character homes in a gentrifying area, and Como provides riverside living with consistent price appreciation.
Regional Western Australia offers different opportunities with towns like Busselton and Geraldton providing more affordable entry points and potentially higher rental yields, though with different market dynamics than Perth metropolitan areas.
What is the current breakdown of property prices across Perth and regional Western Australia, and how does that compare for buyers and investors?
Perth property prices as of September 2025 show significant variation across suburbs and property types, creating different opportunities for buyers and investors.
The Perth metropolitan median house price sits around AU$700,000, while apartments range from AU$450,000 to AU$500,000. However, these figures vary dramatically by location - premium suburbs like Cottesloe command median prices above AU$2.5 million, while emerging suburbs may offer houses from AU$500,000 to AU$600,000.
For investors, the price-to-yield relationship varies significantly. Higher-priced suburbs like Peppermint Grove or Dalkeith may offer capital growth potential but lower rental yields of 2-3%. Mid-tier suburbs like Morley or Belmont might provide better rental yields of 4-5% with moderate capital growth prospects.
Regional Western Australia presents different dynamics entirely. Towns like Kalgoorlie, Geraldton, or Bunbury offer median house prices between AU$300,000-AU$400,000, potentially higher rental yields due to mining or regional employment, but with greater volatility and less liquidity than Perth metro markets.
Foreign buyers should consider that the AU$5,700+ approval fee represents a smaller percentage of total costs on higher-value properties, while the 7% foreign buyer stamp duty surcharge affects all price ranges equally, making it relatively more expensive for lower-priced properties.
What are the most common mistakes and pitfalls foreigners make when buying property in Perth, and how can they be avoided?
Foreign buyers in Perth frequently make costly errors that can be avoided with proper planning and professional guidance.
The most critical mistake is attempting to purchase established dwellings during the current ban period from April 2025 to March 2027. Many foreign buyers are unaware of this restriction and waste time and money pursuing properties they cannot legally purchase. Always verify that your target property is new or off-the-plan before making offers.
Timing errors with ATO approval cause significant problems. Some buyers sign unconditional contracts before receiving approval, risking contract breach and deposit forfeiture. Always make offers conditional on ATO approval and allow sufficient time (60+ days) for the approval process before settlement dates.
Underestimating total costs is extremely common. Many foreign buyers focus only on the property price and forget about the 7% foreign buyer stamp duty surcharge, ATO fees, ongoing land tax surcharges, and higher Capital Gains Tax obligations. Calculate all costs including ongoing taxes before committing to purchase.
Inadequate due diligence leads to expensive problems. Foreign buyers sometimes skip building inspections, fail to review strata records properly, or don't research local market conditions thoroughly. Engage local professionals for comprehensive property assessments and market analysis.
Financing mistakes include approaching unsuitable lenders or not preparing proper documentation for foreign buyer mortgage requirements. Work with experienced mortgage brokers and prepare comprehensive financial documentation before applying for loans.
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 Perth requires careful navigation of complex regulations, significant additional costs, and thorough market research.
Success depends on understanding current restrictions, engaging professional help, and carefully calculating all costs including ongoing tax obligations that differ significantly from those faced by Australian residents.
Sources
- Australian Taxation Office - Types of property a foreign person can buy
- KDD Settlement Agent Perth - Perth Property Market Overseas Investors
- Australian Taxation Office - Banning foreign purchases of established dwellings
- Mavin Real Estate - Can foreigners buy property in Perth
- Properstar - Real estate guides and advice Australia
- Property Tax Specialists - Non-resident buying property in Australia guide
- Upscore App - Buying property in Australia on a temporary visa
- Visa Envoy - Buying property Australia temporary residents