Buying a house in Australia: without PR the existing housing market is closed until mid-2029
Australia has banned the purchase of existing homes by foreign persons — including temporary visa holders — and that ban has been extended in the 2026-27 budget to 30 June 2029. Permanent residents and New Zealanders are exempt; new builds are sometimes possible with approval. And even *with* fresh PR you take care: states such as New South Wales charge 9% extra for whoever hasn't yet lived 200 days in Australia.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
No: without permanent residency (PR, permanent residence status) you do not buy an existing house in Australia. With PR you buy freely, but watch the tax. In three points:
- Without PR. Since 1 April 2025 the purchase of established dwellings (existing homes) by foreign persons is banned, temporary visa holders included. According to the Treasury guidance that ban runs until 30 June 2029.
- With PR. You pay a transfer duty, a tax on the purchase that in New South Wales rises from 1.25% to 5.5% of the price.
- The catch. It lies at Revenue NSW, the state's tax office, in the definition of "foreign". A permanent resident only counts as not foreign there after at least 200 days in Australia in the preceding year, and otherwise pays a 9% surcharge on top of the ordinary duty.
In your first year you do not buy. You rent, get to know the city, and only then decide. Why that order is fixed is in why you do not buy a house in your first year. In Australia the legislator has enforced that order: whoever has no permanent status simply may not buy an existing house.
May I buy a house in Australia as a foreigner?
Since 1 April 2025 foreign persons may no longer buy established dwellings (existing homes). That includes temporary visa holders. The ban was to last two years but has been extended to 30 June 2029.
The exceptions are narrow, and all apply only with prior approval:
- redevelopment that increases the housing stock by at least twenty dwellings;
- purchases that keep housing available on a commercial scale (build-to-rent, assisted living, student accommodation);
- companies housing workers from the Pacific.
New builds and vacant land remain possible, also only with prior approval. On vacant land you must build within four years. Whoever leaves a home empty more than 183 days a year pays an annual vacancy fee, a charge on vacancy. The ATO (the Australian tax office) handles the applications and actively enforces.
The conclusion for emigrants is the same as our house rule, with a year attached: on a temporary work visa you rent; buying comes once your PR is through.
| Status | Existing home | New build or vacant land |
|---|---|---|
| Temporary visa (foreign person) | banned until 30 June 2029 | with prior approval; build within 4 years |
| Permanent resident | free | free |
| Australian citizen | free | free |
The approval itself costs money, rising with the price: for a new build or vacant land up to $1 million you pay $15,600 in fees in 2026-27, and for the rare exception on an existing home up to $1 million $46,800.
What does buying a house in Australia cost with PR?
Once your PR is in, you buy freely. But the taxes differ per state. Everywhere you pay transfer duty (stamp duty) in brackets over the price. In New South Wales the rate in 2026-27 runs from $1.25 per $100 in the lowest bracket to $4.50 per $100 above $387,000 and $5.50 above $1,290,000. For homes above $3,870,000 a premium rate of 7% applies.
And mind the catch for fresh immigrants. On top of the ordinary duty NSW has a surcharge purchaser duty of 9% for foreign persons. You are only "not foreign" once you are an Australian citizen, or a permanent resident who was in Australia at least 200 days in the preceding year. A fresh PR holder who buys right after arrival can therefore still be hit by that surcharge. So plan the purchase at the earliest a small year after the move. That neatly coincides with our rent-first year.
| Item | Amount or rate |
|---|---|
| Transfer duty NSW 2026-27 | $1.25 to $5.50 per $100, in brackets; 7% above $3,870,000 |
| Surcharge purchaser duty NSW | 9% of the value, for foreign persons |
| Exemption from the surcharge | Australian citizen, or permanent resident with at least 200 days in Australia in the year before the transaction |
| Approval fee new build or vacant land up to $1 million | $15,600 (2026-27) |
| Approval fee existing home up to $1 million | $46,800 (2026-27) |
| Vacancy fee | annual, when empty more than 183 days |
| Buyer's costs together | 5 to 15%, depending on state and status |
The cost indication for Australia uses that band of 5 to 15%: the bottom is the PR holder after his first year, the top the buyer who is hit by the surcharge.
What do I pay every year after that?
As an owner you pay the municipal council rates, the local tax you already knew indirectly as a tenant. In some states land tax on investment properties comes on top. Ask for the current rates on a concrete house and put them in your budget. What the first months look like, you read in your first weeks in Australia.
What is the pitfall?
Not the ban, because that is unambiguous, but the day after PR. Whoever has permanent status and signs immediately still falls under the definition of foreign person in NSW. They pay 9% extra over the whole price: on a house of $1 million that is $90,000 for a signature that came a few months too early. Count the 200 days, and count them from the day you are really in Australia, not from the visa date.
In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Australia.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- ATO — the extension of the ban on the purchase of established dwellings by foreign persons to 30 June 2029 — ato.gov.au
- Revenue NSW — the surcharge purchaser duty of 9% and who counts as a foreign person — revenue.nsw.gov.au
- Foreign Investment (Treasury) — Guidance Note 6 Residential Land: ban on established dwellings until 30 June 2029, exceptions, vacancy fee — foreigninvestment.gov.au
- Foreign Investment (Treasury) — Schedule of Fees 2026-27 (residential land) — foreigninvestment.gov.au
- Revenue NSW — transfer duty: current thresholds and rates — revenue.nsw.gov.au
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