Foreign Investment In Property Slows

The number of foreign buyers purchasing Australian properties has slowed, as the Federal Government’s extended ban on purchases of established dwellings takes effect.

There has been $3.7 billion in foreign investment in Australia’s residential housing market in FY2026 to date which is equivalent to 2,326 properties.

But Real Estate Institute of Australia president, Jacob Caine, says a slowdown is not always a good thing, as foreign investment in the Australian housing market has been invaluable in helping to underpin adequate supply.

“Whilst government restrictions on foreign investment in theory contribute to a more level playing field for Australian residents, in practice they undermine housing affordability targets and the ultimate goal of an equitable housing system,” he says.

In April 2025 the Federal Government introduced a temporary ban on foreign purchases of established dwellings. It was to expire in 2027 but has been extended to 30 June 2029.

The Australian Taxation Office’s Register of Foreign Ownership shows that the highest number of applications to purchase an Australian property are from China, with 638 applications in the financial year to date, followed by Taiwan with 285 and Vietnam with 237.