Buying Property in Australia: The 2025 Guide for Foreign Investors

Last Updated: December 2025

Is the Australian property market open to foreign buyers in 2025? The short answer is yes—but the rules have changed drastically.

Effective April 1, 2025, the Australian Government introduced strict new measures to prioritise housing for locals. For foreign investors, the strategy has shifted from "buying what you want" to "buying what you build."

This guide cuts through the marketing noise to give you the verified legislative reality. We break down the ban on established homes, the state-by-state surcharges, and the specific pathway that remains open for smart investors.

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The Golden Rule: What Can Foreigners Buy in 2025?

The most critical update for 2025 is the Established Dwelling Ban.

The Hard Stop

From April 1, 2025 to March 31, 2027, foreign investors are generally banned from purchasing established dwellings—homes that have been lived in before. This includes:

❌ Existing houses on the secondary market
❌ Second-hand apartments
❌ Any previously occupied residential property

The "Fixer-Upper" Myth

You generally cannot buy an older home to renovate. The "fixer-upper" strategy is effectively off-limits for individual foreign investors unless you plan to demolish and build at least 20 new dwellings on the site—a threshold most individual buyers cannot meet.

The Open Pathway: Buy New

The Australian government actively encourages foreign investment into new dwellings. Buying a brand-new property (one that has never been occupied or sold) is your path of least resistance.

What qualifies as a new dwelling:

✅ Off-the-plan apartments
✅ House-and-land packages
✅ Newly constructed homes never previously occupied
✅ Vacant land (with requirement to build within 4 years)

This approach aligns with national housing goals to increase supply, meaning fewer regulatory hurdles and lower FIRB fees.

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The Cost of Entry: Surcharges and Fees

A common mistake foreign buyers make is assuming the list price is the purchase price. In 2025, you must budget for the "double cost" reality—state taxes and federal fees that can add 15–20% to your upfront costs.

FIRB Application Fees

Before you can buy, you must apply to the Foreign Investment Review Board (FIRB).

Current fees (2025–26 financial year):

Property Value	New Dwelling Fee	Established Dwelling Fee
Up to $1M	$15,100	$45,300 (tripled)
$1M – $2M	$30,300	$90,900
$2M – $3M	$60,600	$181,800
$3M – $4M	$90,900	$272,700
$4M – $5M	$121,200	$363,600

Important: FIRB fees are generally non-refundable if your application is rejected or you fail to secure the property. However, a 75% refund may be available for unsuccessful competitive bids.

For complete fee breakdowns, see our FIRB Fees Guide.

State Stamp Duty Surcharges

Most Australian states charge a foreign buyer surcharge on top of standard stamp duty. These are the current 2025 rates:

State/Territory	Foreign Surcharge	Notes
New South Wales	9%	Increased from 8% (Jan 1, 2025)
Victoria	8%	Highest base stamp duty rates
Queensland	8%	Increased from 7% (July 1, 2024)
Tasmania	8%	Strict documentation required
South Australia	7%	—
Western Australia	7%	—
ACT	0%	No foreign buyer surcharge
Northern Territory	0%	No foreign buyer surcharge

Real Cost Example

For a $800,000 new apartment in NSW:

Cost Item	Amount
Purchase price	$800,000
Standard stamp duty	~$31,000
Foreign buyer surcharge (9%)	$72,000
FIRB application fee	$15,100
Legal/conveyancing	~$2,500
Total upfront costs	~$920,600

That's approximately 15% above the purchase price in government fees alone.

Don't guess these numbers. Use the PropertyCosts.com.au Calculator to get an accurate breakdown for your specific visa type and property value.

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Financing: The Cash Buffer Reality

If you require a mortgage, be aware that Australian banks have tightened lending criteria for non-residents.

What to Expect

• LVR limits: Most major banks cap lending at 60–70% of property value for non-residents
• Higher interest rates: Typically 0.5–1% above standard resident rates
• Stricter documentation: Extensive proof of overseas income required

The Liquidity Requirement

Between your 30–40% deposit and the ~15% in taxes and fees, you effectively need approximately 50% of the purchase price in liquid cash to close a deal.

Example: For an $800,000 property, budget for $400,000+ in available funds.

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Strategic FAQ: Quick Answers for Investors

Can temporary residents buy established homes in 2025?

Generally, no. The April 1, 2025 ban includes temporary residents purchasing established dwellings for use as a principal place of residence, subject to very limited exceptions. Focus on new builds or vacant land.

For visa-specific guidance, see our Temporary Resident vs. Foreign Investor Guide.

What is the Vacancy Fee?

If you leave your property empty for more than 183 days (approximately 6 months) in a year, you'll be charged an annual vacancy fee equal to double your original FIRB application fee.

For a $800,000 new dwelling, that's $30,200 per year if left vacant.

You must lodge a Vacancy Fee Return every year, even if the property is tenanted.

Is it easier to buy in a development?

Yes. Look for developers holding a New Dwelling Exemption Certificate. This allows them to sell new apartments to foreign buyers without you needing individual FIRB approval, saving you roughly 30 days and streamlining the purchase process.

Which states have the lowest costs for foreign buyers?

The Northern Territory and ACT charge no foreign buyer stamp duty surcharge, making them significantly cheaper for foreign investors. However, consider market size and growth potential alongside tax savings.

See our State-by-State Foreign Buyer Stamp Duty Guide for detailed comparisons.

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Your 2025 Action Plan

Step 1: Filter Your Search

Only look at "New Homes" or "Off-the-Plan" projects. Established dwellings are off-limits until at least March 31, 2027.

Step 2: Calculate Your True Costs

Run your specific scenario through the PropertyCosts Calculator to verify your total tax liability including FIRB fees, stamp duty, and surcharges.

Step 3: Secure Your Cash Position

Ensure you have access to approximately 50% of the property value in transferable funds. If transferring from overseas, account for currency control limits in your home country and allow adequate time for transfers.

Step 4: Verify the Developer

Ask specifically if the project has a New Dwelling Exemption Certificate. This simplifies your purchase process significantly and confirms the property qualifies as a new dwelling.

Step 5: Apply for FIRB Early

Submit your FIRB application before signing contracts, or ensure your contract includes a "subject to FIRB approval" condition. Allow at least 30 days for processing.

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Additional Resources

• Complete FIRB Guide 2025 — Everything you need to know about FIRB approval
• FIRB Fees Tripled in 2024: Complete Guide — Detailed fee breakdown
• State-by-State Foreign Buyer Stamp Duty Surcharges — Compare costs across Australia
• New vs Established Property Guide — Strategic comparison for foreign buyers
• Calculate Your Complete Property Costs — Free instant calculator

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Disclaimer: This guide provides general information only and should not be relied upon as legal, tax, or financial advice. Legislation regarding foreign investment (FATA) and taxation is subject to change. Always consult with a qualified Australian solicitor and tax professional before entering into a contract.

Last updated: December 12, 2025. FIRB rules and state surcharges current as of this date.