Foreign Investment in Australian Homes Hits $4.7 Billion
The Foreign Investment Review Board has reported total residential investment figures while extending a key property ban.
Updated on Oct. 23, 2026 in Residential
Live Poll
Should the federal government maintain the current ban on foreign buyers purchasing established homes?
The Foreign Investment Review Board approved $4.7 billion in foreign residential real estate investment across Australia during 2025-26. This total, spanning 2,979 individual approvals, represents a 4 percent decline compared to the previous financial year.
Why it matters
New housing developments in Australia often rely on foreign capital to reach presale targets, making international interest a key factor in construction activity. Meanwhile, the government continues to restrict foreign ownership to support local market accessibility.
Chinese investors secured 785 approvals totalling $900 million during 2025-26, followed by investors from Taiwan at $500 million and Vietnam at $300 million. Indonesia and India each contributed $200 million toward the total approved residential investment.
The players
Foreign Investment Review Board
This Australian government body provides advice to the Treasurer on foreign investment policy and examines major proposals to ensure they align with the national interest.
Australian Taxation Office
The principal revenue collection agency of the Australian government which also manages the enforcement of foreign property ownership regulations.
The details
The Australian Taxation Office maintains oversight of these transactions through enhanced screening processes for all foreign investment proposals. Consequently, international buyers are currently focusing their purchasing power on newly constructed housing projects to remain compliant with federal regulations.
Timeline
The 2025-26 period saw $4.7 billion in approved foreign residential investment.
In October 2025, there were 192,225 Chinese students in Australia.
The ban on foreign purchases of established homes is extended until 30 June 2029.
Culture Shift
The current property investment landscape reflects a broader shift towards prioritising local housing supply through the Foreign Acquisitions and Takeovers Act framework. By channelling international capital into new developments, the government attempts to balance housing demand with domestic supply needs.
For local buyers, the continued restriction on established home purchases means foreign capital remains concentrated in new-build developments rather than existing housing stock. This policy aims to ensure that international investment facilitates new supply rather than inflating prices for older, established homes.
The takeaway
Prospective property buyers should note that foreign investment is largely limited to new developments, which can affect the availability and pricing of new-build units. Monitoring these annual investment figures provides insight into where international capital is flowing within the Australian real estate market.
Further reading
For more information on national trends, see Residential.
Live Poll
Should the federal government maintain the current ban on foreign buyers purchasing established homes?
