Two independent MPs have launched a bid for a two-year ban on foreign home buyers in Australia’s residential property market.
Independent MPs Andrew Gee and Rebekah Sharkie have introduced a private members bill, modelled on similar laws in Canada.
Gee argues it is hard enough for many first home-buyers to crack the market, and taking foreign investors out of the equation might provide a leg-up.
“Why shouldn’t Australians have first shot at buying that property rather than foreign investors?” he said.
“Because at the moment, those foreign investors are crowding out, particularly young Australians and young families trying to buy their first home.”
There are already strict rules around foreign investment in Australian property, largely restricting it to new developments.
And it’s a relatively small slice of the market — with about 4,200 sales to foreign buyers in the year to June 2022.
Some economists have suggested given the numbers are small, there are more effective ways to improve housing affordability — particularly boosting the supply of new housing.
And Tom Devitt from the Housing Industry Association has warned against the bill, arguing foreign investors are needed to help build that new supply.
“They’re crucial investors, especially in the apartment sector,” he said.
“And going forward, the apartment sector and the high density units and townhouse sector really need to do more of the heavy lifting.”
