Foreign Property Purchases Drop Sharply After Australia Tightens Restrictions

New rules implemented in 2025, which temporarily ban foreign entities from purchasing existing homes in Australia, have led to a 22.4 percent decrease in investment approvals. The Productivity Commission reports that this decline is almost entirely attributable to residential real estate approvals. However, the ban only applied during the last quarter of the 2024-25 financial year, and a downward trend in housing approvals was already apparent before its implementation, meaning the complete effect of the restrictions will only be clear with future data.

• New rules in 2025 temporarily banned foreign entities from buying existing homes in Australia.
• This contributed to a 22.4 percent fall in investment approvals.
• Overall foreign investment approvals dropped from 6,812 in 2023-24 to 5,284 in 2024-25.
• The fall was almost entirely due to a decrease in residential real estate approvals.
• The ban was only in effect for the final quarter of the 2024-25 financial year.
• A decline in housing approvals was already occurring before the ban.
• The full impact of the ban will be evident when data for the current financial year becomes available.