The Australian government has announced a two-year ban on foreigners buying homes on the secondary market, starting this April until March 31, 2027. The ban, part of efforts to tackle surging house prices, is expected to free up around 1,800 homes per year for local buyers.
Overseas investors will still be able to acquire houses in Australia, but only those off-the-plan or those still under planning.
Australian home prices have been on a steady increase over the past 10 years. Knight Frank Property Hub executive director for international projects Adrian Yeoh says, “Brisbane’s median house price went up from A$451,000 (RM1.3 million) to A$885,500 — a 96% increase in 10 years.
Likewise, Melbourne’s median house price rose from A$634,921 to A$1,261,070.
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“There are several reasons behind this increase. Low interest rates before 2022 made it easier to borrow money, which led to more property purchases. Also, Australia’s population has grown, mostly because of migration, which has raised the need for houses.
“Furthermore, the limited number of houses, construction costs and delays in building [completions] have added to the rising prices. Foreign investment is another factor, especially in big cities where overseas buyers often look for luxury homes, even though they are just a small part of the total market,” he adds.
Yeoh points out that since this ban only targets the purchase of existing homes, Malaysians who already own property in Australia will not be impacted. However, he advises them to keep an eye on market shifts due to the ban.
“One effect might be that property prices in some locations could hold steady or drop slightly due to less foreign competition.
Meanwhile, demand for rentals could rise,” he says, explaining that individuals may choose to rent rather than purchase a property. “This could be a good chance for property owners to rent out their assets.”
Source: The Edge Malaysia
