Australia’s government will ban foreign investors from buying established houses for the next two years as part of an election pitch to tackle surging home prices.
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From April 1, foreign investors will be banned from buying established property until March 31, 2027, Housing Minister Clare O’Neil said in a statement on Sunday. The restriction will then be reviewed to determine whether it should be extended.
O’Neil said in comments televised by the Australian Broadcasting Corp that the ban would likely free up around 1,800 properties per year for local buyers.
“These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes,” the minister’s statement said.
Australia’s housing is some of the most unaffordable in the world and soaring property prices will be a key election issue amid a broader cost-of-living crisis, especially among young voters who fear they will never be able to buy a home.
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In Sydney, housing values have jumped almost 70 per cent over the past 10 years, with the median dwelling price now around A$1.2 million (US$762,000), according to property consultancy CoreLogic Inc. Rents have also been climbing.