Foreign buyer interest still high despite tighter rules
Chinese buyers account for more than two-thirds of Australian dwellings recorded as foreign owned, according to new data from the Australian Taxation Office (ATO), as offshore investors adjust their strategies in response to surcharges and tighter rules.
The ATO’s Register of Foreign Ownership of Australian Assets shows that of more than 40,000 residential properties held by overseas interests and acquired between 2016 and 2024, 67% are linked to purchasers from mainland China. When Hong Kong is included, that share exceeds 27,000 properties.
Victoria holds the largest concentration of foreign-owned homes, with 16,929 addresses on the register, representing just over 40% of the national total. New South Wales follows with 8,862, ahead of Queensland with 8,129 and South Australia with 2,129.
Most recorded properties are newly built stock. The register lists 23,147 new dwellings owned by foreign buyers, alongside 8,463 established homes bought between July 1, 2016 and June 30, 2024 that remain in offshore hands. Purchases of existing homes are now largely prohibited for foreign investors, with exemptions applying only to limited categories such as permanent residents, New Zealand citizens and certain temporary residents acquiring a principal place of residence.
The ATO notes that the register is not a complete inventory of foreign ownership, but it does capture land and dwellings acquired since mid‑2016, supplemented by information drawn from state and territory land titles data.
While Mainland Chinese investors are by far the largest foreign cohort among buyers from 135 countries, the register shows a diverse mix of other foreign investors participating in the market. The countries where the most number of individual investors came from include:
- People’s Republic of China: 23,550
- Hong Kong, SAR: 3,486
- Singapore: 1,892
- Malaysia: 1,820
- Vietnam: 1,598
- United Kingdom: 1,183
- Japan: 1,168
- India: 1,020
- Indonesia: 1,010
- Taiwan: 770
- United States of America: 553
- Nepal: 546
- Korea (Republic of South Korea): 339
- Canada: 314
- Sri Lanka: 260
- Germany: 245
- South Africa: 227
- Switzerland: 217
- British Virgin Islands: 213
- Cambodia: 175
PropTrack senior economist Eleanor Creagh said Chinese capital controls would likely be a key factor shaping offshore investment in Australian housing over the coming year.
She also pointed to long-standing links between Australia and China through education and trade. “There’s also skilled migration programs that are probably creating a link between investment and housing demand for the APAC region members,” she said.
Despite recent federal measures to restrict some types of foreign residential purchases, Creagh said macro conditions remain supportive of continued offshore interest, particularly if the Australian dollar stays relatively weak against major currencies and new housing supply increases.
“Australia is also viewed as a safe haven, in some respects,” Creagh added. “It’s a country that’s got transparent legal systems, and strong property rights, and has a perception of being far removed from geopolitical adversities.”
The ATO register indicates that foreign buyers have tended to target more affordable dwellings. It records 31,888 properties bought for under $1 million, compared with 8,289 acquisitions at $1 million or more.
In recent years, FIRB and ATO data have pointed to a tougher environment for offshore purchasers, including higher taxes and stricter rules on what can be bought. However, more punitive state-based regimes do not appear to have diverted demand away from key markets.
New South Wales and Victoria imposed some of the heaviest foreign surcharges over the period covered by the data, each applying an 8% additional stamp duty on foreign buyers, with New South Wales later lifting its rate to 9%. Both jurisdictions also levy extra annual land tax on offshore owners.
Even so, Victoria and New South Wales remain the two main destinations for international residential investment, with 16,929 Victorian properties and 8,862 New South Wales properties recorded on the register.
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