Australia’s opposition leader has pledged to ban foreign purchases of residential real estate for two years if he is elected as the nation’s next leader.
Daily Mail reported Peter Dutton, the Liberal Party of Australia leader, announced his proposed ban on social media, arguing that it is a necessary strategy for addressing the nation’s housing shortage.
“Imagine this: You work hard, stay in while everyone’s going out so that you can save a bit more and you finally have enough to buy your first home, so you put in a good offer only to be outbid by someone who doesn’t even live in this country,” said Dutton. “It’s a situation many first homebuyers have right now and that’s why if I’m the next prime minister I will work to ban foreign investors and temporary residents from buying existing homes for two years. This will give young people a fair shot at owning their first home. It’s time to prioritize Australians who are working hard to get into the market. We’ll make sure homes are for those who need them the most: Australians.”
In recent years, Australia has recorded rising number of new immigrants and a shrinking volume of housing inventory. While the federal government has set a goal of building 1.2 million extra homes by July 2029, a forecast from Master Builders Australia predicted that only 1.03 million of the targeted goal could be constructed. Complicating matters is a decline in housing starts coupled with elevated mortgage rates, resulting in fewer and more expensive homes across Australia.
Furthermore, the impact of non-citizens on Australia’s housing market appears to be limited. The Australian Taxation Office determined foreign buyers account for roughly 1% of all residential property transactions. Individuals from China, Hong Kong and India were the most prominent buyers in the market, and their average purchase price was $914,000.
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