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’ll never be able to buy a home.
In Sydney, housing values have jumped almost 70% over the past 10 years, with the median dwelling price now around A$1.2 million ($1.02 million), according to property consultancy CoreLogic. Rents have also been climbing.
Still, the ban is likely to have only a marginal effect on prices. Overseas investors bought A$4.9 billion of residential real estate — including vacant land, new and established dwellings — in the 12 months ended June 30, 2023, according to the Australian Taxation Office. Established dwellings accounted for about one-third of the total.
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The tax office will be given extra funding to help enforce the ban, O’Neil said Sunday.
The government’s move to ban foreign purchases of established houses matches a pledge by opposition leader Peter Dutton made last year. An election must be held by May 17, and polls show it will be a close fight, with cost-of-living concerns and housing among the top three issues.
Chart: Bloomberg
