Australia imposes 2-year ban on foreigners buying existing homes
What's the story
The Australian government has announced a two-year ban on foreign investors buying existing homes in the country.
The ban is slated to start on April 1, 2025, and end on March 31, 2027.
The move was jointly announced by Treasurer Jim Chalmers and Housing Minister Clare O'Neil as a step to tackle Australia's housing supply crunch.
Housing availability
Ban expected to free up properties for local buyers
The ban is expected to free up around 1,800 properties each year for local buyers.
"These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes," the ministers' joint statement read.
The ban's effectiveness will be reviewed after two years to assess if an extension is needed.
Election issue
Housing dissatisfaction dominates political landscape
The problem of housing dissatisfaction in Australia hit an all-time high last year. It is likely to be a key issue in the general election due by May.
The current Labor government, which is lagging behind its conservative opposition in recent polls, has pointed out housing costs as the biggest contributor to Australia's rising cost of living.
Policy changes
Government introduces housing reforms amid crisis
In response to the housing crisis, the government has also introduced several housing reforms. These include a shared equity scheme and tax incentives for developers, aimed at easing cost pressures.
The reforms are part of an ambitious plan to build 1.2 million new homes by 2030.
The measures are expected to alleviate some of the housing supply issues currently plaguing Australia.