To begin with, a foreign person may only enter the Australian property market if their entry adds to the market—helping to support Australia’s economic growth.
Therefore, the Australian government allows foreign persons to purchase only new dwellings and vacant land for development.
Who needs to apply?
Both foreign residents and non-residents must apply for foreign investment approval before purchasing property in Australia.
A foreign resident is someone who:
- Resides in Australia and holds a bridging visa or has applied for a permanent visa; or
- Holds a temporary visa that allows a stay in Australia for more than 12 continuous months.
A foreign non-resident is someone who:
- Does not ordinarily reside in Australia (excluding Australian citizens); or
- Holds a visa allowing only a limited stay.
Where to apply?
Foreign residents and non-residents must apply for approval through the Foreign Investment Review Board (FIRB) if purchasing residential real estate—whether a dwelling, vacant land, or an established property. Applications are submitted online and processed by the Australian Taxation Office (ATO).
Which residential real estate can be purchased?
Established/Existing Dwellings
Foreign non-residents are prohibited from purchasing established dwellings in Australia. These are reserved for Australian citizens. Foreign buyers are limited to new dwellings or vacant land for development.
New Dwellings
Foreign persons may purchase new dwellings but must obtain approval before signing a contract. These applications are generally approved without conditions, as the government encourages foreign investment in new builds.
A new dwelling is one that has never been sold or occupied. If sold by a developer, it must not have been occupied for more than 12 months.
Vacant Land
As with new dwellings, foreign buyers must apply for approval before purchasing vacant residential land.
The approval requires the property to be developed within four years. Proof of completion must be submitted within 30 days of completion.
Vacant land that previously had a dwelling is not considered vacant for foreign investment purposes.
Exemptions
Some buyers are exempt from foreign investment approval. This includes individuals who are:
- Australian or New Zealand citizens;
- Holders of Australian permanent residency; or
- Purchasing jointly with a spouse who is an Australian or New Zealand citizen, or a permanent resident.
Approval is also not required for purchases of:
- Aged care facilities, retirement villages, or certain student accommodations;
- Property acquired by will;
- Property acquired directly from the Commonwealth, State/Territory, or local government; or
- Certain properties in a Designated Integrated Tourism Resort.
Designated Integrated Tourism Resorts in Queensland include:
- Hamilton Island Resort
- Hope Island Resort
- Hyatt Regency Resort, Coolum
- Kooralbyn Valley Resort
- Laguna Quays Resort
- Mirage Port Douglas Resort
- Palm Cove Travelodge Resort
- Royal Pines Resort, Ashmore
- Sanctuary Cove
- Kingfisher Bay Resort Village, Fraser Island
Foreign persons should confirm whether their intended purchase is exempt. If unsure, they should seek legal advice. Breaching the foreign investment rules can result in severe penalties, including civil, criminal, and forced sale orders.