The Australian government is introducing a two-year ban on the purchase of ready-made homes by foreign investors as part of an election campaign aimed at combating rapidly rising property prices. About this informs Bloomberg.
The restriction will take effect from April 1, 2024 and will be valid until March 31, 2027. The government will then review the decision and determine whether it should continue. Australia is currently ranked among the least affordable housing countries in the world, and skyrocketing property prices are becoming a key issue in the election campaign. This is of particular concern to young voters who fear they will never be able to afford their own home.
Housing prices in Sydney have increased by almost 70% over the past decade, and the average price is now around 1.2 million Australian dollars ($762,000). At the same time, rents also continue to rise. The Government will provide additional funding to the Australian Taxation Office to enforce the new restrictions.
Over the past year, foreign investors have bought A$4.9 billion worth of residential property, including land, new developments and ready-made homes. At the same time, the share of built housing was about a third of the total number.
