Australian government restricts foreigners’ home purchases to curb soaring housing prices.
Australia’s Housing Minister Claire O’Neill said on the 16th, “We have decided to ban foreign investors from purchasing existing real estate for two years from April 1st.” New housing is allowed to be purchased. In addition, foreign investors who purchase empty land are required to complete the development within a reasonable period of time. Australia only allows foreigners who have migrated for work or study to purchase existing housing.
Australia has blocked foreign investors from buying homes because housing prices have soared recently. According to Real Estate CoreLogic, Sydney housing prices in Australia are up 70% from 10 years ago. The median price of a Sydney house is about $762,000. Surging housing costs and prices have emerged as the biggest agenda of the general election in May.
Local media believe the measures will not have a significant impact on the housing market. The Australian government has announced that the measures will provide housing to domestic buyers, accounting for only 2.68 percent of the total number of housing transactions in Australia. Local media reported that the measures were taken with the general elections in mind in May.
Peter Dutton, leader of Australia’s conservative opposition Liberal Party, pledged to ban foreigners from purchasing existing homes. The liberal opposition Green Party said, “Both parties blame rising housing prices only on migrants. This will do nothing to solve the housing crisis.”
EJ SONG
US ASIA JOURNAL
