Australia
Australian property 2026: what foreign buyers may still purchase after the resale ban
Australian housing holds its long-term value on scarce supply and high net migration. Yet the legal framework facing foreign buyers is now the tightest among developed markets: the ban on purchasing established dwellings took effect in April 2025 and has since been extended. Understanding the FIRB rules correctly comes before any commitment of capital.
Figures updated 08/2026
Market overview
From 1 April 2025, foreign nationals — including temporary residents in Australia and foreign companies — are barred from buying established dwellings, save for a few narrow exceptions such as redevelopment projects adding at least 20 new homes. The ban was initially due to lapse on 31 March 2027 and was subsequently extended to 30 June 2029. What remains open comprises newly built homes never occupied, off-plan apartments and vacant land for new construction; all require FIRB approval and payment of the applicable fee before the transaction proceeds.
FIRB fees rise with the value of the asset: for a new home priced up to AUD 1 million, the application fee already runs to tens of thousands of Australian dollars, and the schedule is indexed annually, so the current ATO fee table should be checked. Beyond that, New South Wales, Victoria and Queensland levy a foreign buyer stamp duty surcharge of 7–9% of the purchase price, plus an annual land tax surcharge. Transaction costs for foreign buyers are therefore materially higher than for domestic purchasers.
On the market itself, prices remain elevated on constrained supply and gradually easing interest rates; Sydney and Brisbane lead the growth, while Melbourne recovers more slowly. Gross rental yields commonly sit at 3–4.5%, with apartments above houses. Vacancy rates across the major cities remain near historic lows, leaving the balance with landlords.
A word on positioning: Australian property is a long-term wealth-preservation exercise and accommodation for a child studying abroad. It is not an instrument for obtaining residency — Australia grants no visa for buying a home — nor is it a high cash-flow channel. Your calculations need to carry the FIRB fee, the stamp duty surcharge, the land tax surcharge and capital gains tax on sale.
Investment case
Why this market
A prolonged shortage of supply
Australia has been short of housing for years while net migration runs at record levels, and the government's target of 1.2 million new homes keeps slipping. That scarcity underpins long-term value, most visibly in Sydney, Brisbane and the growth corridors.
Strong rule of law, transparent data
Ownership is secured under the Torrens registration system, transaction data is published through CoreLogic and PropTrack, and conveyancing is standardised through solicitors or licensed conveyancers. This is the lowest legal-risk market in the portfolio we advise on.
Aligned with a child's study plans
A new apartment near a Group of Eight university serves both as accommodation during the study years and as exposure to durable rental demand from international students — a segment with low vacancy and steadily rising rents.
Legal
What foreign buyers need to know
- Every transaction by a foreign national requires FIRB approval before contracts are signed. Buying without approval can result in a forced sale of the asset and substantial penalties.
- Established dwellings may not be purchased until 30/06/2029, save for narrow exceptions: redevelopment projects creating at least 20 new homes, and certain temporary-resident worker cases set out in the rules.
- Foreign buyers pay a stamp duty surcharge of 7–9% in the major states and an annual land tax surcharge. On sale, capital gains are taxed at non-resident rates with withholding applied at source.
- Buying a home creates no residency right and no preference of any kind in a visa application under Australian migration law.
- Australian banks lend to non-residents on very limited terms. Most foreign investors purchase with their own funds or arrange financing outside Australia.
Linked residency programme
Australian Residence 2026: the National Innovation Visa and the Skilled Visas
Answers
Frequently asked questions
Can Vietnamese nationals buy property in Australia in 2026?
Yes, but only within three asset types: newly built homes never occupied, off-plan apartments purchased from the developer, and vacant land with a commitment to build. All three require FIRB approval before contracts are signed. Established dwellings have been closed to foreign buyers since 1 April 2025, and the ban has been extended to 30 June 2029. Australian permanent residents and citizens fall outside these restrictions.
Does buying a home in Australia lead to a residency visa?
No. Australia operates no property-for-visa programme in any form, and the 188 investment visa closed in July 2024. Buying in Australia is purely a wealth-preservation decision. If your objective is residency, the realistic routes lie in the skilled or employer-sponsored streams — please see our Australia immigration page.
What are the total additional costs for a foreign buyer in Australia?
Beyond the purchase price, allow for: the FIRB application fee, which scales with value and runs to tens of thousands of Australian dollars; standard state stamp duty plus the foreign buyer surcharge of 7–9% in New South Wales, Victoria and Queensland; and legal and inspection fees. Total transaction costs can reach 12–15% of the value of the asset. That figure belongs in the return calculation from the outset, not as a discovery after the deposit is paid.
Which Australian city should one buy in?
It depends on the objective. Sydney offers the deepest liquidity and the tightest supply, in exchange for a high entry price. Brisbane benefits from the 2032 Olympic infrastructure and interstate migration. Melbourne is recovering more slowly, which creates a reasonable entry point on a long horizon. Adelaide and Perth stand out for low vacancy. For families with a child studying abroad, we favour new apartments close to a Go8 university and to public transport.
How is rental income in Australia taxed for a non-resident?
Non-residents for Australian tax purposes must declare rental income under the non-resident schedule: there is no tax-free threshold, the first band begins at 30% under the current rates, and eligible expenses are deductible. On sale, capital gains are taxable and the buyer withholds at source under the FRCGW mechanism. We recommend engaging an Australian tax accountant from the first year.
Market information is provided for reference as at the date shown and does not constitute investment advice. Property values may rise or fall. Contact VNIS Investment for advice matched to your objectives and financial capacity.
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