The Federal Government is introducing a two-year ban on foreign buyers purchasing existing homes in Australia, aiming to address the housing crisis.

From April 1, 2025, overseas buyers—including temporary residents—will no longer be able to purchase established properties.

The policy will be reviewed after two years to assess its impact.

However, property analysts believe the ban will have minimal effect on the market.

Real estate technology group Juwai IQI estimates only 1,600 transactions per year will be affected.

Managing Director Daniel Ho explains that out of around 520,000 home sales annually, fewer than 5,000 involve foreign buyers—and just a third of those are existing homes.

This accounts for only 1% of total property sales.

Importantly, temporary residents will still be allowed to invest in new developments, keeping opportunities open for foreign investment in Australia’s residential property market.

Treasurer Jim Chalmers also announced a crackdown on land banking by foreign investors to free up more land for housing developments and speed up construction.