The Federal Government has announced a two-year ban on foreign buyers purchasing existing homes in Australia as part of efforts to address the housing crisis.

Effective from April 1, 2025, the ban will prevent overseas buyers, including temporary residents, from acquiring established properties. The policy will be reviewed after two years to assess its impact.

However, industry analysts suggest the measure will have minimal effect on the broader housing market. Research from international real estate technology firm Juwai IQI indicates that only 1,600 transactions annually will be affected.

Managing Director Daniel Ho notes that of the approximately 520,000 home sales per year, fewer than 5,000 involve foreign buyers, with only one-third of those being existing homes—representing just 1% of total transactions.

Importantly, temporary residents will still be eligible to purchase new properties, ensuring continued demand for new developments.

Additionally, Treasurer Jim Chalmers has announced a crackdown on land banking by foreign investors, aiming to accelerate the release of land for housing construction and improve supply.