Off-the-plan purchasers not affected by FIRB ban

If you're a temporary resident living in Australia or residing overseas and looking to buy an off-the-plan property here, you will not be affected by the Federal Government's latest announcement that bans foreigners from buying homes.

Under the new regulation from the Foreign Investment Review Board (FIRB) which comes into effect 1 April 2025, temporary residents are banned from purchasing established houses - but they're still able to purchase off-the-plan properties and newly completed dwellings without being affected by the revised rules.

This change is intended to support the creation of new housing by redirecting demand towards new apartments and houses, which will see further demand channelled towards key off-the-plan markets.

Colliers managing director, Victoria | Residential, Tim Storey, said, “We expect that the effects of this policy change will surprise on the upside, especially for developers of new apartments in Melbourne who will now have a larger pool of buyers.

“This policy is a positive step towards addressing the housing supply issue in Australia. 

"By encouraging the purchase of new dwellings, we are also supporting the construction industry.”

According to the latest available statistics, foreign buyers have purchased an annual average of only 1,291 established homes over the past three years, representing just 0.24% of overall housing market sales.

Significantly, Victoria has consistently attracted the highest levels of foreign buyer activity across all categories, accounting for 45% of purchases across Australia over the past three years - a trend that's expected to continue, benefiting developers in the state.

“The updated FIRB regulations combined with the Reserve Bank of Australia’s recent announcement of a cash rate cut, which lenders have passed through, create a more favourable environment for new housing developments," Tim said.

"Developers should see this as an opportunity to meet the growing demand for new dwellings.

“This change ensures that the market for off-the-plan properties remains robust and continues attracting foreign investment."

To find brand new off-the-plan apartments and townhouses across Australia, click here.