The answer is yes—but property type, buyer status and approval timing matter more than ever
Australia still welcomes foreign property investment—but the pathway has narrowed. With established homes generally restricted until 30 June 2029, overseas buyers need to understand which properties remain available, when approval is required and which ongoing costs and reporting duties can follow a purchase.
Australia remains open to foreign property buyers, but the rules are designed to direct overseas capital towards homes that increase housing supply. That makes the difference between a new dwelling, vacant land and an established home critically important.
The latest Australian Government guidance, updated on 1 July 2026, states that foreign investors are generally prohibited from purchasing established dwellings from 1 April 2025 to 30 June 2029, with limited exceptions. This replaces the earlier end date of March 2027. The restriction includes foreign non-residents, temporary residents and foreign-controlled companies unless an exemption or approved exception applies. Read the current Residential Land guidance.
First, confirm whether you are treated as a foreign person
Your citizenship, visa, residency, purchasing entity and co-buyer arrangement can change the answer. Australian citizens living overseas, Australian permanent-residency visa holders and eligible New Zealand citizens generally do not need a residential foreign-investment application. A joint-tenancy purchase with an Australian citizen, permanent-resident or eligible New Zealand-citizen spouse may also be exempt. View the government’s residential real-estate exemptions.
Do not assume that living in Australia, paying Australian tax or applying for permanent residency automatically settles your status. Confirm it before selecting a property or signing an unconditional contract.
What may be purchased?
Eligibility remains subject to buyer status, approval and the conditions attached to the property.
New or Near-New
Often purchasable with foreign-investment approval or qualifying developer approval.
Vacant Residential Land
Construction is generally required within four years, with restrictions before completion.
Established Dwelling
Generally prohibited until 30 June 2029, unless a limited exemption or exception applies.
What foreign buyers can still purchase
New and near-new dwellings
A foreign buyer may generally apply to purchase a genuinely new dwelling, including eligible off-the-plan property. A new dwelling must not have been previously sold or occupied. A near-new dwelling has a narrower definition—for example, a property in a qualifying development where an earlier sale failed to settle and occupation has not exceeded the permitted period.
Sometimes a developer holds a New or Near-New Dwelling Exemption Certificate covering foreign purchasers. Never rely on a sales claim alone; obtain and verify the certificate and confirm that it covers your proposed purchase and price.
Vacant residential land
Vacant land that has never contained a dwelling may also be available with approval. Conditions generally require at least one home to be constructed, completion within four years and no disposal before construction is complete.
Land created by demolishing an existing home is generally not treated as vacant land for this purpose because it does not automatically increase housing stock.
Established dwellings: limited commercial exceptions
The ordinary purchase of an existing house or apartment is generally restricted. Current exceptions focus on proposals that materially expand or support housing supply—for example, redevelopment producing at least 20 additional dwellings, qualifying commercial-scale housing, continuing Build-to-Rent operations and specified worker accommodation.
These are specialist exceptions assessed case by case, not a routine pathway for an individual overseas buyer seeking an existing home. See Guidance Note 6, version 5.
Your pathway before signing
Order MattersConfirm Status
Check citizenship, visa, entity and co-buyer position.
Classify Property
Verify whether it is new, near-new, vacant or established.
Secure Approval
Apply through the correct pathway and budget for the fee.
Settle and Report
Complete registration and diarise ongoing obligations.
Approval should come before commitment
Foreign persons generally need approval before acquiring an interest in Australian residential land, regardless of value. Applications are normally made through ATO Online Services for foreign investors, and an application fee applies.
An eligible contract may be made conditional on approval, but an unconditional purchase can expose the buyer to serious risk and penalties. Review the ATO application process.
Approval is only one part of the budget. Buyers must consider ordinary transfer duty, foreign-purchaser surcharges, conveyancing, finance, insurance and ongoing tax obligations.
In Victoria, foreign-purchaser additional duty is currently 8% of the foreign purchaser’s dutiable share, on top of normal land-transfer duty. Other states and territories apply their own rules. Check Victoria’s current additional-duty rate.
Four obligations buyers should budget for
Application and Advice
Approval fees plus qualified legal, tax and property guidance.
State Duties
Normal transfer duty and any applicable foreign-purchaser surcharge.
Ownership Register
Register the acquisition within the required timeframe after settlement.
Vacancy Obligations
Lodge the annual return and understand when a vacancy fee may arise.
Obligations continue after settlement
A foreign owner generally must register residential property on the Register of Foreign Ownership of Australian Assets within 30 days of settlement. An annual vacancy-fee return may also be required.
A vacancy fee can apply when the dwelling is not residentially occupied or genuinely available for rent for at least 183 days during the vacancy year. Records relating to foreign-investment actions may need to be retained for up to five years. Read the ATO registration guidance.
Eligibility does not automatically make a property suitable
A legally available property may still be a poor purchase. Examine the developer’s record, contract terms, build and settlement risks, owners-corporation costs, rental demand, resale audience, finance, currency exposure and total holding costs.
The best approach begins with the buyer’s purpose and time horizon—not a glossy brochure or sales deadline.
Rav Sri’s Final View
Foreign buyers can still participate in Australian residential property, but the safest opportunities are now more closely aligned with new housing supply. The biggest mistakes happen when buyers choose a property first and investigate eligibility, approval and costs later.
As Founder, OIEC and Director of RAVS REALTORS—and a licensed Victorian real-estate professional—I recommend confirming your buyer status, property classification and complete cost position before committing funds. A well-structured purchase begins with the rules and ends with the right property.
Book a Free Property Strategy Consultation
Considering a new home, apartment, house-and-land opportunity or overseas property purchase? Begin with a clear strategy rather than a sales pitch.
Phone: +61 428 192 899
Email: Rav@Ravs.com.au
Website: Ravs.com.au
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This article provides general information only and does not constitute financial, investment, legal or tax advice. Market conditions and regulations can change. Obtain independent professional advice and complete your own due diligence before purchasing property.
