Australia has had an idea to solve (or alleviate) housing crisis that has been dragging for a long time: it makes it difficult for foreign investors interested in their real estate market. Both those who want to monopolize soil and those looking for already built houses. The restriction is already looking with a certain restlessness From India, origin of a good part of Australian immigration, but beyond Oceania or Asia interests for another reason: its approach and objectives.
After all, or Australia is the only country to deal with a residential crisis or yours is the first government to consider foreigners. In Spain itself there is already talk of limiting the purchase to investors of out of the EUmeasure that in Barcelona They propose to extend to community citizens who do not intend to establish themselves in the city.
What happened? That Australia has decided to adopt “drastic measures” against the purchase of houses and land by foreigners, In words of his government. A few days ago, just a few months after The elections to Parliament and with the house turned into one of the Great concerns from the country, Anthony Albanese executive announced A “energetic” plan to prevent operations from abroad from complicating (even more) access to housing to Australians.
Its bet is based on two measures: limit or directly veto purchases from outside the country.
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What exactly do they pose? That foreign investors cannot buy houses or apartments in Australia, although the measure has an important small print. To start because it focuses on buildings already existingnot in the new constructions. Another key is that it has an expiration date. The veto will last only two years, between April 1, 2025 and March 31, 2027, although Australian authorities They already advance That the time will “review” to assess whether to extend for a longer time.
“So far investors have generally been forbidden to buy existing properties, except in specific circumstances, such as when they come to live to work or study,” he recalls A statement issued by the Department of Clare O’Neil, Housing Minister. “As of April 1, foreign investors will no longer be able to buy an existing home in Australia while the veto is in force, unless an exception is applied.”
Will there be exceptions? In case there were doubts about the scope of the measure, the Australian authorities Remember that the prohibition will also be extended to temporary residents and foreign property companies. In fact the veto already He has aroused suspicion In India, where it is common for young people to move to Australia with the claim to train and seek employment.
As remember The O’Neile office the norm contemplates certain exceptions, but in a “limited” way and oriented to a very specific profile: local authorities recognize that what they have in mind are the investments that “significantly increase” the housing park or favor their availability. That is, the balance of the supply of houses for the Australians themselves is always positive.
Is it the only measure? No. The Albanese team progresses that will reinforce the controls to ensure that the regulations are met and provide special attention to the “land hoist” in foreign hands.
“We are taking energetic measures against the purchase of land by foreign investors to release land and build more homes more quickly,” The Executive points outwhich guarantees to be “striving” to “identify” investors who buy empty land, urban them while the prices upload and then take them up for sale.
And what is the reason? “This activity violates the standards and causes delays in the development of residential and commercial urbanizations that are essential,” insist from the department of O’Neil. In the same statement they presume in fact the investment dedicated to auditing and detecting this kind of movements in the sector.
“Foreign investors who have already acquired or propose to acquire vacant, residential or non -residential land will be subject to greater scrutiny to ensure that they meet the conditions of development.”
What is the goal? Facilitate access to housing between Australians themselves and “guarantee” that foreign investment in housing responds to “national interest.” “The ban will mean that Australians can buy houses that would otherwise have been acquired by foreign investors,” presume From the Ministry of Housing. “It’s about relieving pressure on our real estate market while built more houses.”
But … will it work? That is the great unknown, if the measure will help decongest the Australian market. Authorities are confident that he will release some 1,800 properties a year that will be available to local buyers, but The Telegraph He quotes experts They estimate that the new policy will not reach 0.4% of the real estate market. Moreover, in 2022 foreign investors starred in 5,360 purchases of residential real estate and only a small part of them (one third) were already existing homes.
How serious is the problem? To understand the plan of the Albanese government, it is as important to understand its details as the context. First because the plan is announced in a Pre -election atmosphere and with the house turned into one of the problems that More restless To the Australians. Second because the country dealt with a complex scenario in residential matters, marked by the Price risehe maladjustment Between supply and demand, difficulties to access to a home and The fall in investment In social housing.
2024 said goodbye with a very slight 0.1% drop In housing prices, but from the sector it is noted that it is probably a “superficial and short duration” decrease. In fact, it manages studies that point in the opposite sense. Last spring reuters made A poll Among analysts that revealed that the increase in housing prices will probably be maintained until 2026.
Images | PAT WHELEN (UNSPLASH)