Foreign home buyer ban targets tiny market share

With both Labor and the Coalition proposing a two-year ban on foreign purchases of existing homes, you’d be forgiven for thinking this policy would drastically improve housing availability for Australians. The truth? It’s not likely to move the needle much.

According to a recent PropTrack report, starting in April 2025, temporary residents who previously were allowed to buy property if they were studying or working in Australia and foreign-owned companies would face restrictions.

While the intent is noble – making homes more accessible to locals – the data tells a different story. From July 2022 to June 2023, foreign buyers accounted for only 1% of total real estate transactions. Of these, roughly a third were established homes, which the ban specifically targets, according to PropTrack.

Clearly, that’s a tiny slice of the pie. The bulk of foreign purchases went towards new properties, which are outside the scope of this proposal. So, while the move might help symbolically, it’s unlikely to reshape housing supply or affordability in a meaningful way.

If we’re serious about tackling the housing crisis, we need to focus on increasing supply – and fast. At a national level, there’s been a 28% shortfall in new homes completed compared to population growth over the past year, according to the report. In places like Queensland and Western Australia, the gap is even wider.

The reality is that housing shortages have been a long-brewing storm. Population growth has outpaced construction for years, and while some states are ramping up efforts to rezone land and build where demand is highest, the progress has been slow.

So, what’s the solution? Policies that turbocharge home-building initiatives for a start.

While banning foreign buyers might grab headlines, it’s clear that the housing crisis needs much bigger ideas and faster action. Let’s not lose sight of the bigger picture, which is we need homes, not distractions.