Albanese’s Foreign Investor Ban: A Misguided Move That Will Hurt the Market

Locking Out Foreign Investors Won’t Solve Australia’s Housing Crisis

The Albanese Government’s decision to ban foreign investors from purchasing established homes for two years is being sold as a solution to Australia’s housing woes. 

Starting 1 April 2025, overseas buyers—including temporary residents and foreign-owned companies—will be blocked from the existing property market until 31 March 2027.

But will this really make homes more affordable? Or is this just political posturing that ignores the real issue: a critical lack of housing supply?

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Foreign Investment Isn’t the Problem—Supply Is

The housing crisis isn’t caused by foreign investors—it’s caused by years of underbuilding, restrictive zoning laws, and sluggish planning approvals. 

Cutting off foreign capital won’t magically increase supply. In fact, it could do the opposite by discouraging investment in new developments and reducing overall housing availability.

Instead of scapegoating foreign investors, the government should be focused on incentivising housing construction, streamlining approvals, and unlocking more land for development.

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Targeting Foreign Land Banking Misses the Bigger Picture

The crackdown also includes measures against foreign land banking, where overseas investors purchase land and leave it undeveloped.

But the reality is, local developers and investors are just as guilty of sitting on land due to restrictive regulations and slow development approvals. Simply banning foreign buyers doesn’t fix the deeper systemic issues that are choking housing supply.

Meanwhile, the Australian Taxation Office (ATO) is set to receive $5.7 million over four years to enforce these new rules—money that could be better spent addressing the actual bottlenecks in housing construction.

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A Blow to Market Confidence and Investment

Policies that restrict investment rarely lead to positive economic outcomes. Blocking foreign investors will reduce liquidity in the market, slow down property transactions, and create uncertainty for developers who rely on pre-sales to fund new builds.

Less investment means fewer new homes—exactly the opposite of what Australia needs right now.

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Savvy Investors Are Turning to Alternative Strategies

With the traditional property market facing increasing government intervention, smart investors are shifting their focus to more stable, high-yield opportunities like Supavest OCP and TIC Property.

• Supavest OCP provides a secure, high-yield property investment model that isn’t vulnerable to reactionary policy changes. Investors can access sustainable, cash-flow-positive property assets that build long-term wealth.
• TIC Property offers fractional property ownership, allowing investors to buy into premium real estate without the burden of full ownership. This model ensures steady rental income and long-term capital growth, even in a volatile policy environment.

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Band-Aid Solutions For Gaping Wounds 

The current housing shortage is in need of legislation that makes a real difference. 

Do not sit idly by as dangerous, unprecedented legislation is imposed on the property market that requires growth in order to prosper. 

The property market needs to thrive, this is just a simple fact. 

Get in touch with the team at Supavest today and be part of the solution! 

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