Australia has announced a significant policy shift aimed at addressing its housing supply crisis. The government will impose a two-year ban on foreign investors purchasing existing homes. This decision, effective from April 1, 2025, to March 31, 2027, was unveiled by Treasurer Jim Chalmers and Housing Minister Clare O'Neil. The initiative is designed to alleviate the mounting pressure on the nation's housing market, which plays a crucial role in the escalating cost of living across the country.
The Australian government's proactive stance comes as a response to the pressing need for more housing availability. Housing costs have become the most significant factor contributing to the rising cost of living in Australia. By restricting foreign ownership of existing homes, the government aims to make more properties available to local buyers, thereby easing the market's supply constraints.
"We're banning foreign purchases of established dwellings from April 1, 2025, until March 31, 2027." – Jim Chalmers
The announcement was made through a statement released on a Sunday, although the specific location of the announcement was not disclosed. While the ban targets foreign investors purchasing existing homes, it does not extend to new home purchases. This distinction is intended to continue encouraging investment in new housing projects, which can contribute to increasing overall supply.
The involvement of both Treasurer Jim Chalmers and Housing Minister Clare O'Neil underscores the government's commitment to tackling the housing affordability issue head-on. The policy reflects a broader strategy to manage demand and ensure that Australian residents have better access to housing opportunities.
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