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Foreigners can purchase property in Sydney, but they face strict rules, visa requirements, government approvals, and extra costs compared to locals or permanent residents.
Buying remotely is possible, but the process must comply with Australian law and requires extra planning and expert support.
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 dwellings, off-the-plan properties, or vacant land in Sydney but face an 8% foreign buyer surcharge and must obtain FIRB approval.
The median house price in Sydney is approximately AUD 1.4-1.6 million as of September 2025, with additional costs including stamp duty, FIRB fees, and ongoing taxes.
| Aspect | Foreigners | Locals/Permanent Residents |
|---|---|---|
| Property Types Allowed | New dwellings, off-the-plan, vacant land only | All property types |
| FIRB Approval Required | Yes (AUD 6,600-100,000+ fee) | No |
| Foreign Buyer Surcharge | 8% additional stamp duty | None |
| Minimum Deposit (Mortgages) | 20-30% | 5-20% |
| Capital Gains Tax Exemption | No main residence exemption | Yes, for main residence |
| Annual Land Tax | Standard rates + surcharges | Standard rates only |
| Vacancy Fee | Yes, if unoccupied >6 months | No |
Can foreigners actually buy property in Sydney, and how do the rules differ from what locals can do?
Foreigners can purchase property in Sydney, but they face significant restrictions compared to Australian citizens and permanent residents.
As a foreigner, you can only buy new dwellings, off-the-plan properties, or vacant land where you commit to building a residence within four years. You cannot purchase established homes unless you plan to demolish and redevelop to increase housing stock.
From April 2025 to March 2027, the Australian government has imposed a temporary ban on foreign purchases of established dwellings, with only limited exceptions for redevelopment projects. This makes new construction and off-the-plan purchases your primary options during this period.
Australian citizens and permanent residents face no such restrictions and can buy any property type without government approval. They also avoid the foreign buyer surcharge and additional taxes that apply to non-residents.
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Do I need to be an Australian resident or hold a particular visa to purchase property?
You do not need to be an Australian resident or hold permanent residency to buy property in Sydney.
However, your foreign status triggers mandatory Foreign Investment Review Board (FIRB) approval for any property purchase. This applies regardless of whether you're a tourist, temporary visa holder, or overseas resident.
Temporary visa holders can buy property under strict conditions, typically only for personal residence or approved redevelopment projects. The property must align with the purpose of your visa and comply with FIRB guidelines.
If you're married to or buying jointly with an Australian citizen or permanent resident, you may bypass some FIRB requirements, though this depends on the ownership structure and your specific circumstances.
Can I complete the property purchase entirely from overseas, or must I be physically present?
You can complete a Sydney property purchase entirely remotely without setting foot in Australia.
The process relies on virtual property tours, electronic contract systems like DocuSign and PEXA, and granting power of attorney to Australian legal professionals. Banks accept overseas income verification and can process mortgage applications remotely.
Your lawyer or conveyancer can handle property inspections, contract negotiations, and settlement procedures on your behalf. Electronic settlement systems allow final transfers and registrations without physical presence.
While remote buying is legally possible, it requires careful coordination with local professionals who understand both Australian property law and international transaction procedures.
What government approvals and step-by-step procedures are required for foreigners?
| Step | Action Required | Timeframe |
|---|---|---|
| 1. Property Identification | Identify eligible property type (new/off-plan/vacant land) | Ongoing |
| 2. FIRB Application | Submit Foreign Investment Review Board application with fees | 30-90 days processing |
| 3. Professional Engagement | Hire licensed real estate agent and conveyancer/lawyer | 1-2 weeks |
| 4. Finance Arrangement | Secure mortgage pre-approval (if needed) | 2-6 weeks |
| 5. Contract Exchange | Exchange contracts (conditional on FIRB approval) | 1-2 days |
| 6. Due Diligence | Complete building/pest inspections, strata reports | 1-2 weeks |
| 7. Settlement | Final property transfer, title registration, tax payments | 6-12 weeks from exchange |
Is hiring a lawyer or conveyancer mandatory, and what exactly do they handle?
While not legally mandatory, hiring a lawyer or conveyancer is essential for foreign buyers to navigate Sydney's complex property laws.
These professionals handle FIRB application lodging, contract review and negotiation, title searches, and encumbrance checks. They ensure all government approvals are in place before settlement and coordinate with banks, agents, and government bodies.
For remote buyers, they act as your eyes and ears in Australia, conducting property inspections, managing settlement procedures, and ensuring compliance with local regulations. They also handle the electronic settlement process through PEXA and register title transfers.
Legal fees typically range from AUD 2,000 to AUD 5,000 depending on property complexity and location. This investment protects you from contract errors, title issues, and regulatory non-compliance that could cost significantly more to resolve later.
What upfront costs, taxes, and fees must foreigners pay when buying and selling?
Foreign buyers in Sydney face substantial upfront costs beyond the property purchase price.
Stamp duty ranges from 4% to 5.5% of the purchase price, plus an additional 8% foreign buyer surcharge in New South Wales. For a AUD 1.5 million property, this means approximately AUD 195,000 in stamp duty costs alone.
FIRB application fees start at AUD 6,600 for properties under AUD 1 million and scale upward, reaching over AUD 100,000 for high-value purchases. Legal and conveyancing fees add another AUD 2,000 to AUD 5,000, while mortgage setup fees vary by lender.
Ongoing costs include annual land tax with foreign owner surcharges and vacancy fees if the property remains unoccupied for more than six months per year.
Upon resale, you'll pay capital gains tax at standard rates with no main residence exemption available to non-residents. Capital gains tax withholding of 12.5% applies to properties sold for more than AUD 750,000.
Can foreigners get mortgages in Australia, and what conditions apply?
Foreigners can obtain mortgages from Australian lenders, though conditions are stricter than those for residents.
You'll typically need a minimum 20-30% deposit compared to 5-20% for Australian residents, and lenders require comprehensive proof of overseas income, assets, and employment stability. Interest rates for foreign buyers are generally 0.5-1% higher than standard rates.
Australian banks, non-bank lenders, and some international banks offer foreign buyer programs. Having Australian income sources, local guarantors, or temporary/permanent residency status significantly improves approval chances.
Lenders assess your debt-to-income ratio based on Australian lending standards and may require currency hedging for non-AUD income sources. Pre-approval is strongly recommended before making property offers.
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Which Sydney areas are most popular with foreign buyers and why?
Foreign buyers gravitate toward specific Sydney regions that offer lifestyle, investment potential, and proximity to key amenities.
The Central Business District attracts buyers seeking prestige addresses, proximity to major employers, and access to universities like the University of Sydney and University of Technology Sydney. High-rise apartments and mixed-use developments appeal to investors and professionals.
Eastern Suburbs including Bondi, Coogee, and Randwick remain popular for their beach lifestyle, excellent schools, and strong rental demand from students and young professionals. These areas maintain consistent capital growth and high livability ratings.
North Shore suburbs like Chatswood, Lane Cove, and Mosman attract families seeking top-tier schools, safe neighborhoods, and excellent transport links. The area's multicultural community and established infrastructure appeal to Asian investors particularly.
The Inner West, including Newtown and Marrickville, draws buyers seeking vibrant culture, strong rental yields, and proximity to the CBD while maintaining more affordable entry points than harbor-side suburbs.
Where are the best areas for living, renting out, or capital growth right now?
Sydney's best areas vary significantly depending on your primary objective as a property buyer.
For personal living, Eastern Suburbs and North Shore offer the highest livability with excellent schools, healthcare, shopping, and recreational facilities. These areas consistently rank highest on livability indexes but command premium prices.
For rental investment, Inner West suburbs like Newtown, Parramatta, and Western Sydney areas deliver stronger rental yields, often exceeding 4-5% gross returns. These areas benefit from transport improvements and urban renewal projects driving tenant demand.
Capital growth prospects favor CBD fringe areas, Hills District developments, and transport corridor properties benefiting from infrastructure investments like the Metro West and light rail extensions. These areas show strong population growth forecasts and planning approvals for major developments.
Properties near universities, hospitals, and major employment hubs typically provide the most stable rental income and growth potential across economic cycles.
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.
How do property prices break down by Sydney suburb and region?
Sydney property prices vary dramatically by location, with premium harbourside suburbs commanding significantly higher prices than outer metropolitan areas.
As of September 2025, Sydney's median house price sits at approximately AUD 1.4-1.6 million, while apartments average AUD 800,000-1.2 million depending on location and quality.
Eastern Suburbs houses in Bondi Beach average AUD 2.5-4 million, while Randwick ranges from AUD 1.8-2.5 million. North Shore premium areas like Mosman command AUD 3.2-5 million for houses, with Chatswood apartments averaging AUD 900,000-1.5 million.
Inner West suburbs offer more accessible entry points, with Newtown houses ranging AUD 1.6-2.2 million and Marrickville from AUD 1.3-1.8 million. Western growth areas like Parramatta see houses from AUD 1.1-1.3 million.
These prices change monthly based on market conditions, interest rates, and supply levels. Always consult current listings and recent sales data for accurate, suburb-specific pricing before making purchase decisions.
What common mistakes do foreigners make when buying Sydney property?
Foreign buyers frequently make costly errors that experienced investors and local professionals help them avoid.
The most expensive mistake is proceeding without FIRB approval, which can result in forced property sales, penalties up to 25% of purchase price, and criminal charges. Always secure FIRB approval before signing any contracts or making deposits.
Many buyers underestimate total costs, focusing only on purchase price while ignoring the 8% foreign buyer surcharge, FIRB fees, legal costs, and ongoing taxes. These additional costs can add 15-20% to the total investment.
Buying in unsuitable locations without understanding local market dynamics leads to poor rental yields and capital growth. Areas may seem attractive online but lack transport links, amenities, or future development potential.
Attempting to complete purchases without professional legal and financial advice often results in contract errors, title issues, or non-compliance with local regulations that cost significantly more to resolve later.
Overpaying in competitive markets without proper comparable sales analysis and building inspections can lead to substantial financial losses, particularly in off-the-plan developments where final products may differ from marketing materials.
What are the ongoing tax implications of owning Sydney property as a foreigner?
Foreign property owners in Sydney face complex ongoing tax obligations that differ significantly from those of Australian residents.
Annual land tax applies with foreign owner surcharges varying by property value and council area. You'll also pay vacancy fees if the property remains unoccupied for more than six months per year, regardless of the reason.
Rental income from Sydney property is taxable in Australia at non-resident rates starting at 32.5% with no tax-free threshold. You cannot claim the main residence exemption for capital gains tax purposes, meaning full capital gains apply upon sale.
Double taxation issues arise when your home country also taxes Australian rental income or capital gains. Double Taxation Agreements (DTAs) between Australia and many countries provide relief, but you must understand how to claim credits and exemptions properly.
Professional tax advice is essential to structure ownership correctly, understand reporting obligations in both countries, and optimize tax efficiency within legal boundaries.
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 Sydney requires strategic planning, thorough due diligence, and professional guidance to navigate complex regulations and maximize returns.
Success depends on understanding legal requirements, budgeting for all costs, choosing appropriate locations, and maintaining compliance with ongoing tax obligations.
Sources
- Australian Taxation Office - Types of property a foreign person can buy
- Property Tax Specialists - Non-resident buying property in Australia guide
- Rise Property Buyers - How to buy property remotely using virtual tours
- Properstar - Real estate guides and advice Australia
- BambooRoutes - Australia real estate foreigner guide
- Property Buyer - Foreign investment rules March 2025
- GM Law - Buying a house in Australia as a foreigner
- Revenue NSW - Foreign buyers and land owners