Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
Sydney remains one of the most desirable property markets in the world, but buying here as a foreigner comes with unique risks that locals simply do not face.
From a temporary ban on established dwellings to sophisticated email scams that have cost buyers hundreds of thousands of dollars, the landscape in early 2026 requires careful navigation.
This article breaks down exactly what you need to know, with practical steps you can actually follow, so you can protect yourself and make a confident purchase.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sydney.
We constantly update this blog post to reflect the latest regulations and market conditions.
How risky is buying property in Sydney as a foreigner in 2026?
Can foreigners legally own properties in Sydney in 2026?
As of early 2026, foreigners can legally own property in Sydney, but Australia has a temporary ban in place that blocks most foreign buyers from purchasing established (existing) homes until March 31, 2027.
The main restriction is that foreign persons, including temporary residents and foreign-owned companies, generally cannot buy established dwellings during this ban period, which means that classic terrace houses in Surry Hills or Federation homes in Chatswood are typically off-limits for foreign buyers right now.
To work within these rules, foreigners in Sydney commonly purchase new dwellings (often off-the-plan apartments) or vacant residential land with a build condition, as these remain available with Foreign Investment Review Board (FIRB) approval.
It is important to understand that all foreign buyers must obtain FIRB approval before purchasing any residential property in Sydney, and failure to do so can result in forced sale orders, significant fines, or even criminal penalties under Australian law.
What buyer rights do foreigners actually have in Sydney in 2026?
As of early 2026, foreigners who successfully purchase property in Sydney (through approved channels like new dwellings) have essentially the same ownership rights as Australian citizens once title transfers, including the right to sell, lease, or develop the property within legal limits.
If a seller breaches a contract in Sydney, foreign buyers can enforce their rights through the NSW court system or the NSW Civil and Administrative Tribunal (NCAT), which can order specific performance, compensation, or contract rescission, and Australia's strong rule of law makes these remedies generally reliable.
The most common mistake foreign buyers make in Sydney is assuming they have the same purchase flexibility as locals, when in reality foreigners face strict property type restrictions, mandatory FIRB approvals, and additional taxes like the 8% surcharge purchaser duty that NSW imposes on top of standard stamp duty.
How strong is contract enforcement in Sydney right now?
Contract enforcement in Sydney is reliable by global standards, with Australia ranking 11th out of 142 countries in the World Justice Project Rule of Law Index, which puts it ahead of the United States and most European countries for civil justice and contract enforcement.
However, the main weakness foreigners should know about in Sydney is that while the legal system works, litigation is slow and expensive, meaning that if you transfer money to a scammer or sign a contract you did not fully understand, practical recovery can be difficult even when the law is on your side.
By the way, we detail all the documents you need and what they mean in our property pack covering Sydney.
Buying real estate in Sydney can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Sydney right now?
Are scams against foreigners common in Sydney right now?
Scams targeting property buyers in Sydney are common and growing, with Scamwatch reporting over 12 million dollars in false billing losses in just the first five months of 2025, and property transactions are a prime target because they involve large sums, tight deadlines, and multiple email threads.
The most frequently targeted transaction type in Sydney is the settlement process, where scammers intercept email communications between buyers, conveyancers, and agents to redirect large deposit or settlement payments to fraudulent accounts.
Foreign buyers are particularly targeted because they are less familiar with how Australian property transactions work, more likely to accept unusual requests as "just how things are done here," and often conducting business remotely across time zones.
The single biggest warning sign that a deal may be a scam in Sydney is any unexpected request to change bank account details, especially via email, which is the hallmark of payment redirection fraud that has cost Sydney buyers hundreds of thousands of dollars in individual cases.
What are the top three scams foreigners face in Sydney right now?
The top three scams foreign buyers face in Sydney are payment redirection fraud (where scammers intercept emails and send fake bank details), fake agent or listing scams (where criminals impersonate real estate agents or create fictional properties), and underquoting or bait pricing (where advertised prices are deliberately misleading to generate buyer competition).
Payment redirection, the most dangerous scam, typically unfolds like this: a scammer compromises the email account of your conveyancer, agent, or even your own inbox, then sends a professional-looking email with "updated bank details" right when you expect to pay your deposit or settlement, and once you transfer the funds to the fraudulent account, the money is usually moved offshore within hours.
To protect yourself from these three scams in Sydney, you should never act on bank details received only by email (always verify via a known phone number you found independently), always confirm an agent's licence through the NSW Government website before paying anything, and treat advertised price guides as marketing rather than firm offers while anchoring your budget on recent comparable sales in the same suburb.
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 I verify the seller and ownership in Sydney without getting fooled?
How do I confirm the seller is the real owner in Sydney?
The standard verification process in Sydney is to have your conveyancer or solicitor conduct a current title search through NSW Land Registry Services, which shows the registered proprietor (legal owner), any caveats, mortgages, and other encumbrances on the property.
The official document foreigners should request and verify is the Certificate of Title search, which your conveyancer can order, and this will confirm whether the person claiming to sell the property is actually the registered owner under NSW's Torrens title system.
The most common trick fake sellers use in Sydney to appear legitimate is forwarding PDF documents that look official but have been altered, and this happens sometimes, which is why you should only rely on title information your own conveyancer has pulled directly from the registry rather than documents forwarded via email.
Where do I check liens or mortgages on a property in Sydney?
In Sydney, you check liens and mortgages by ordering a title search through NSW Land Registry Services, which your conveyancer will typically do as part of standard due diligence, and this shows all registered mortgages, caveats, and other encumbrances affecting the property.
When checking for liens in Sydney, you should request not just the current title search but also any related registered instruments, and for apartments you need the Section 184 strata information certificate, which reveals the financial health of the strata scheme including any outstanding levies or planned special levies.
The type of encumbrance most commonly missed by foreign buyers in Sydney is strata-related liabilities, because a property can have a clean title but the strata scheme itself might have significant debt, upcoming special levies for building defects, or pending legal actions that will financially impact you as the new owner.
It's one of the aspects we cover in our our pack about the real estate market in Sydney.
How do I spot forged documents in Sydney right now?
The most common type of forged document in Sydney property scams is the fake invoice or settlement statement with altered bank details, which happens sometimes, particularly during the high-pressure days leading up to settlement when buyers are expecting to transfer large sums.
Specific red flags that indicate a document may be forged in Sydney include bank details that differ from those previously provided, email addresses that are slightly misspelled (such as "solicitor@lawflrm.com" instead of "solicitor@lawfirm.com"), urgent language pressuring immediate payment, and any PDF sent via email rather than through secure channels.
The official verification method you should use in Sydney is to contact your conveyancer, agent, or bank using a phone number you found independently (not from the suspicious email), and for settlement payments specifically, consider using PEXA Key, a secure app backed by a 2 million dollar guarantee that provides encrypted bank detail exchange.
Get the full checklist for your due diligence in Sydney
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Sydney?
What hidden costs surprise foreigners when buying a property in Sydney?
The three most common hidden costs foreigners overlook in Sydney are the foreign buyer surcharge on stamp duty (an extra 8% on top of standard stamp duty, which on a 1.5 million AUD property means roughly 120,000 AUD or 75,000 USD or 70,000 EUR in additional tax), strata special levies for building defects or major works (which can range from 10,000 to 70,000 AUD per apartment), and FIRB application fees (starting at around 14,700 AUD for properties valued between 1 and 2 million AUD).
The hidden cost most often deliberately concealed by sellers or agents in Sydney is upcoming strata special levies or known building defects, and this sometimes happens, particularly when sellers are trying to exit a building with significant problems before the next round of levies is announced.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Sydney.
Are "cash under the table" requests common in Sydney right now?
Direct "cash under the table" requests are uncommon in standard Sydney residential transactions, as Australia has strict anti-money laundering laws and electronic settlement through PEXA makes most payments fully traceable.
When pressure to go off-process does occur in Sydney, it typically appears as requests to pay deposits to unusual accounts, "holding deposits" before proper verification, or signing side letters that reduce documented transaction amounts, often framed as ways to "speed things up" or "secure the deal."
If a foreigner agrees to an undeclared payment arrangement in Sydney, they face serious legal risks including stamp duty evasion charges, tax fraud penalties, potential FIRB violations that could result in forced sale orders, and no legal recourse if the undisclosed portion of the deal goes wrong.
Are side agreements used to bypass rules in Sydney right now?
Side agreements to bypass official rules are rare in mainstream Sydney residential transactions, but pressure to cut corners on due diligence timelines is common, particularly in competitive markets where buyers are encouraged to waive cooling-off periods or skip inspections.
The most common type of problematic side agreement foreigners encounter in Sydney is the verbal or informal promise to "sort out" something after settlement, such as repairs, fixtures, or access arrangements, that is not documented in the contract and becomes unenforceable once the deal closes.
If a side agreement is discovered by authorities in Sydney, foreigners face consequences ranging from contract rescission (losing the property), FIRB approval cancellation, tax penalties, and in serious cases involving deliberate fraud, potential criminal charges under Australian law.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Sydney in 2026?
Are real estate agents regulated in Sydney in 2026?
As of early 2026, real estate agents in Sydney operate under a strict licensing regime governed by the Property and Stock Agents Act 2002, which requires formal qualifications, ongoing continuing professional development, and adherence to conduct standards enforced by NSW Fair Trading.
A legitimate real estate agent in Sydney should hold a current real estate agent licence (Class 1 or Class 2) issued by NSW Fair Trading, and they should be able to provide their licence number and display it in their office and marketing materials.
Foreigners can verify whether an agent is properly licensed in Sydney by using the NSW Government's public register lookup service at Service NSW, where you can search by name or licence number to confirm the agent's credentials, licence status, and any disciplinary history.
Please note that we have a list of contacts for you in our property pack about Sydney.
What agent fee percentage is normal in Sydney in 2026?
As of early 2026, the normal real estate agent commission in Sydney metro areas ranges from about 1.8% to 2.5% of the sale price, with the average sitting around 2.1%, though this varies by suburb and property value.
The typical range that covers most Sydney transactions is 1.8% to 2.5% for metropolitan areas, while regional NSW generally sees higher rates of 2.5% to 3.5%, and marketing costs are often charged separately on top of the commission percentage.
In Sydney, the seller typically pays the agent's commission, not the buyer, which means if you are purchasing a property you generally do not pay a fee to the selling agent, though if you hire a buyer's agent to help you find and negotiate a property, you would pay their fee separately (often a flat fee or a percentage in the low single digits).
Get the full checklist for your due diligence in Sydney
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Sydney?
What structural inspection is standard in Sydney right now?
The standard structural inspection process in Sydney involves hiring a qualified building inspector to conduct a pre-purchase building inspection before you commit to buy, examining the property for structural defects, moisture issues, safety hazards, and general condition.
A qualified inspector in Sydney should check foundation and footings, roof structure and cladding, walls for cracking and movement, wet areas for waterproofing integrity, electrical and plumbing visible components, and compliance with building codes, with findings documented in a detailed written report.
In NSW, pre-purchase building inspections should be conducted by licensed building consultants or inspectors who hold appropriate qualifications, and you should verify their credentials and insurance before engaging them, as NSW Fair Trading guidance emphasizes the importance of using properly qualified professionals.
The most common structural issues inspections reveal in Sydney properties are waterproofing failures (especially in apartments and renovated terraces), structural cracking from reactive clay soils common across NSW, and fire safety system deficiencies in older strata buildings, with NSW Building Commission research showing 53% of strata buildings surveyed in 2023 had serious defects.
How do I confirm exact boundaries in Sydney?
The standard process for confirming exact boundaries in Sydney is to have your conveyancer obtain the registered deposited plan or strata plan from NSW Land Registry Services, which shows the legal lot dimensions, boundary lines, and any easements affecting the property.
The official document showing legal boundaries in Sydney is the deposited plan (DP) for freehold land or the strata plan (SP) for apartments, which are registered with NSW Land Registry Services and define the exact legal extent of what you are purchasing.
The most common boundary dispute affecting foreign buyers in Sydney involves shared driveways, rights of way, and drainage easements in inner suburbs like Newtown, Paddington, and Glebe, where older housing stock often has complex access arrangements that are not obvious from a physical inspection.
To physically verify boundaries on the ground in Sydney, you should hire a registered surveyor who can mark the actual boundary lines and confirm whether existing fences and structures align with the legal boundaries shown on the registered plan.
What defects are commonly hidden in Sydney right now?
The top three defects sellers frequently conceal in Sydney are waterproofing failures (which are common and often only visible through moisture testing), deferred strata maintenance masked by cosmetic updates (which sometimes happens when sellers know a special levy is coming), and termite damage in areas with high infestation risk like parts of the Northern Beaches and Hills District.
The most effective inspection technique for uncovering hidden defects in Sydney is to combine a professional building and pest inspection with a thorough strata records review for apartments, including the Section 184 certificate, recent meeting minutes, capital works fund statements, and any building defect reports, which together reveal both physical issues and upcoming financial liabilities.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in Sydney?
What do foreigners say they did wrong in Sydney right now?
The most common mistake foreigners say they made when buying property in Sydney is trusting email communications during the deposit and settlement process, leading to payment redirection fraud that has cost some buyers hundreds of thousands of dollars in a single transfer.
The top three regrets foreigners most frequently mention after buying in Sydney are not thoroughly reviewing strata documents before purchasing an apartment (only to discover major defects or upcoming special levies), underestimating total costs including foreign buyer surcharges and FIRB fees, and rushing due diligence because they felt pressured by Sydney's competitive market pace.
The single piece of advice experienced foreign buyers most often give to newcomers in Sydney is to always verify bank details by phone using a number you found independently, because this one step would prevent the most financially devastating scam foreigners face in the Australian property market.
The mistake foreigners say cost them the most money or caused the most stress in Sydney is buying into a strata building with hidden defects or deferred maintenance, where special levies of 50,000 to 100,000 AUD or more can appear after settlement, trapping owners in a property they cannot easily sell.
What do locals do differently when buying in Sydney right now?
The key difference in how locals approach buying property in Sydney compared to foreigners is that experienced Sydney buyers treat the advertised price guide as marketing rather than reality, particularly for auction properties, and they budget for a final price 10% to 20% above the guide in competitive suburbs like the Eastern Suburbs or Inner West.
The verification step locals routinely take that foreigners often skip in Sydney is ordering and reviewing full strata records (not just the Section 184 certificate) before making an offer on an apartment, including recent AGM minutes, correspondence about defects, the capital works fund balance, and any pending legal actions against the owners corporation.
The local knowledge advantage that helps Sydney buyers get better deals is understanding which suburbs have specific risk profiles (like the Mascot Towers building defect crisis) and using neighborhood-specific contacts, such as knowing which local conveyancers have handled problematic buildings before and can flag issues that would not appear in a standard search.
Don't buy the wrong property, in the wrong area of Sydney
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sydney, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Australian Taxation Office | Official government tax authority explaining foreign buyer rules in plain English. | We used it to establish what foreigners can and cannot buy in 2026. We anchored the ban window dates and exceptions as the baseline legal reality. |
| Foreign Investment Australia (Treasury) | Official Treasury portal for Australia's foreign investment rules and announcements. | We used it to cross-check the ATO explanation and confirm ban dates. We verified policy scope to avoid relying on secondary commentary. |
| ACCC Scamwatch | Australian Government's main consumer scam reporting and education channel. | We used it to ground scam prevalence in official reporting. We built red flags that match what authorities actually see in property fraud. |
| PEXA | Core e-conveyancing platform with direct exposure to settlement fraud patterns. | We used it to explain payment redirection scams in detail. We referenced their secure communication guidance for practical buyer protection. |
| NSW Property and Stock Agents Act 2002 | Primary law regulating NSW real estate agents and related conduct. | We used it to confirm agent licensing requirements. We supported the agent trust checklist with actual legal obligations. |
| NSW Building Commission | Government body researching building defects in NSW strata communities. | We used their 2023 survey data showing 53% of buildings have serious defects. We anchored the strata due diligence section in official statistics. |
| NSW Strata Schemes Management Act | Statute text specifying what strata information certificates must include. | We used it to show what buyers can legally demand before buying an apartment. We anchored strata due diligence in law, not opinion. |
| NSW Land Registry Services | Land registry's technical guidance on boundaries and plan registration. | We used it to explain how boundaries are legally defined in Sydney. We shaped the confirm exact boundaries steps for buyers. |
| NSW Police | State police consumer guidance on property-related scam patterns. | We used it to list common too-good-to-be-true patterns targeting foreigners. We shaped the verify before you pay anything rule. |
| World Justice Project | Independent, survey-based global rule-of-law benchmark used by researchers. | We used it to assess contract enforcement strength beyond anecdotes. We supported a strong institutions but still scam exposure conclusion. |
| Revenue NSW | NSW Government authority on stamp duty and land tax for foreign buyers. | We used it to calculate the 8% foreign buyer surcharge. We detailed the additional taxes foreigners face beyond standard stamp duty. |
| OpenAgent | Independent platform tracking real estate agent commissions across NSW. | We used it to establish the 1.8% to 2.5% Sydney commission range. We cross-referenced with multiple sources for accuracy. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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