SYDNEY — In a bid to increase housing availability for local buyers, Australia has announced a two-year ban on foreign investors purchasing existing homes, set to take effect on April 1.

The measure, which will remain in place until March 31, 2027, was announced by Treasurer Jim Chalmers and Housing and Homelessness Minister Clare O'Neil, according to the Australian Broadcasting Corporation.

Under the new policy, foreign investors, including foreign-owned companies and temporary residents, will be barred from acquiring established homes in Australia, except for developments consisting of at least 20 properties.

According to the Foreign Investment Review Board, foreign investors spent $3.1 billion on 5,360 residential properties in 2022-23, accounting for less than 1% of all home sales.

O'Neil acknowledged that the ban is not a "silver bullet" for Australia’s housing crisis but argued that it would free up thousands of homes for local buyers.

The move follows a similar proposal made by Opposition Leader Peter Dutton in his budget reply speech last year, and analysts view it as an effort by the government to neutralize the political debate over housing policy.

However, some economists remain skeptical about the impact of the ban, noting that foreign buyers currently own only around 2% of Australia’s housing stock, making it unlikely to significantly alter affordability in the country's trillion-dollar property market. — Agencies