Australia plans to ban foreigners from purchasing houses for the next two years. The step is part of the election pitch of the government led by Prime Minister Anthony Albanis, which is to deal with house prices. The move is likely to affect a large number of Indians who go to Australia for their higher education and later settled there.
Australian Housing Minister Claire O’Neel announced that from 1 April, foreign investors would be banned from purchasing assets established by 31 March 2027.
After the deadline, the ban will be reviewed to determine if it should be extended, he said additional funds will be given to the tax office to help implement the ban.
Housing crisis in Australia
Australia’s residence is the most ineffective in the world. With the election in Australia later this year, there is a major issue of a major issue amid widespread cost-living crisis to raise property prices, especially among young voters who are afraid to ever buy a house. Will not be able to. In recent years, the country has also been hired.
In Sydney, housing values ​​have increased by about 70 percent in the last 10 years, with an average housing price now around $ 1.2 million ($ 762,000), Bloomberg has made property consultancy corelogic inc inc.
According to data released by the Australian Taxation Office, foreign investors bought a residential real estate of $ 4.9 billion – including vacant land, and new and established houses – ended on 30 June 2023 in 12 months.
Who will be affected
Under the new rule, foreign investors, including international students and temporary residents such as foreign companies, will be banned from purchasing residential properties established during a period of two years.
However, they will still be able to buy new housing to encourage housing supply and will also be provided a carving-out for workers on a Pacific Visa plan.
Additionally, the government is also planning to curb land banking by foreign investors, which requires them to develop vacant land within a stipulated time frame.
Australia has been a favorite option for Indian students, which aims to carry forward the possibilities of top education and bright career abroad. In 2023–24, India was the leading source of Australia’s migrants.
Replication of labor coalition policy
The Labor Government’s move to ban foreign procurement of established houses matches a pledge by opposition leader Peter Datton last year. An election should be held by 17 May, and the pole suggests that it will be a close battle, with cost-living concerns and housing between the top three issues.
