🚫 2025 Budget – Australia’s 2-Year Foreign Buyer Ban: What It Really Means for Property Developers & Real Estate Businesses

I’ve been thinking a lot about the recent Federal Budget announcement. Particularly the below:

“From 1 April 2025, the Australian Government will introduce a two-year ban on foreign investors purchasing existing homes.”

If you work in property, this probably didn’t sound groundbreaking – after all, non-residents were already mostly limited to new or off-the-plan purchases under FIRB rules anyway.

But here’s the catch…

❗It’s not about what’s changed in policy – it’s about how this will be perceived.

🧭 The Policy – And the Perception Problem – The Power of Headlines and First Impressions

To the average overseas investor, this announcement reads like:

“Australia is closing its doors to foreign buyers.”

They won’t dig into the fine print. They won’t distinguish between existing homes and new builds. And most won’t care to explore FIRB exemptions, application forms, or rising fee structures.

They’ll simply move on – to another country, another market, another opportunity.

💸 Why This Matters for Developers & Agencies

Even if your project is perfectly compliant and still eligible for foreign buyers (e.g. off-the-plan apartments), you may still see:

• A sharp drop in international enquiry
• Slower sales velocity and longer project sell-down cycles
• Financing delays, as pre-sale targets become harder to meet
• And ultimately, less revenue

This is especially critical for those targeting Asian markets, where word travels fast, and sentiment drives momentum.

🔧 How to Prepare and Pivot Strategically

If you or your clients are exposed to foreign investor demand, here are a few things to start doing now:

✅ 1. Refocus Marketing on Domestic Buyers

Start repositioning toward:

• First-home buyers using the expanded Help to Buy scheme
• Local investors
• Downsizers and second-home owners

Highlight incentives, tax benefits, and the appeal of new builds in a market with rising rents.

✅ 2. Educate Your Offshore Network

If you still want to keep the overseas channel alive:

• Create simple, translated resources explaining what’s still allowed
• Include updated FIRB fees and application steps
• Host webinars or Q&A sessions with migration agents or international brokers

✅ 3. Reassess Pre-Sale Assumptions

If you’re pitching to banks or joint venture partners, stress-test your assumptions around foreign demand. Be conservative. Have a plan B.

✅ 4. Track Policy Trends

This ban signals a broader shift: Australia is prioritising housing for locals. There may be more regulation to come – including further restrictions, fee increases, or changes to FIRB exemptions. Plan accordingly.

🎯 Final Thoughts

While the two-year foreign buyer ban might technically change little in terms of what foreigners could already purchase, it marks a turning point in tone, messaging, and investor sentiment.

In property, perception drives behaviour. And in this case, that perception could mean:

• Less demand from offshore
• Longer sales cycles
• And a pressing need to pivot towards local markets

NOTE: I want to be clear – I fully support policies that prioritise housing access for Australians. This blog is simply a reflection of how these policy changes might be perceived in the market – and how developers, real estate professionals, and others in the property space can prepare, adapt and continue to thrive.