If you are a foreign buyer looking at apartments in Australia, the rules changed hard in 2025. The temporary ban on established dwellings, originally set to run until March 2027, has been pushed out to 30 June 2029. That means existing apartments — anything that has been lived in before — are effectively off the table for most overseas buyers. New apartments and off-the-plan purchases remain open, but the costs have climbed steeply.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
The ban targets any foreign person — non-residents, temporary visa holders, foreign corporations, and Australian entities with substantial foreign ownership — and applies to established homes, existing units, apartments, and second-hand dwellings even if renovated. The only residential properties foreign buyers can still purchase are new dwellings, off-the-plan apartments, and vacant residential land where construction starts within four years. A handful of narrow exemptions exist, but for most overseas buyers the path into an existing apartment is blocked until at least mid-2029.
If you are thinking about buying an apartment in Australia as a foreigner, the first question is not which property you like — it is whether the property counts as “new” under the current Australian property rules. Here’s what you actually need to know.
The central concept you need to understand is FIRB — the Foreign Investment Review Board. Every foreign buyer must get FIRB approval before signing a binding contract on residential property. The application is lodged through the ATO’s Foreign Investment portal, takes around 30 days to process, and the fee is non-refundable even if the deal falls through. What I tend to notice is that many buyers underestimate how long this step takes and how much it costs. The approval is property-specific, so changing the property means starting over. Australian citizens and permanent residents are exempt from FIRB entirely, as are New Zealand citizens on a Special Category Visa.
The headline purchase price is only the beginning. For a foreign buyer, the real cost of an apartment in Australia includes FIRB fees, state stamp duty, a foreign buyer surcharge, and often a larger deposit. In New South Wales, for example, a foreign national buying a $900,000 new apartment faces a total bill of around $122,535 on top of the purchase price: a $14,700 FIRB fee, $72,000 in foreign buyer surcharge at 8%, and roughly $35,835 in standard stamp duty. That is more than 13% extra before you even step inside the property.
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| State | Foreign Buyer Surcharge | Standard Stamp Duty ($1M property) | Total Stamp Duty + Surcharge |
|---|---|---|---|
| New South Wales | 9% | $45,500 | $135,500 |
| Victoria | 8% | ~$40,000 | ~$120,000 |
| Queensland | 7% | ~$35,000 | ~$105,000 |
| South Australia | 7% | ~$35,000 | ~$105,000 |
| Tasmania | 8% | ~$35,000 | ~$115,000 |
| Western Australia | 7% | ~$35,000 | ~$105,000 |
| ACT / Northern Territory | 0% | ~$35,000 | ~$35,000 |
On top of these upfront costs, foreign owners face an annual land tax surcharge in most states — 5% in NSW on top of standard land tax — and a vacancy fee equal to double the original FIRB application fee if the dwelling sits empty or is not genuinely available for rent for more than 183 days in a year. Deposit requirements for non-resident buyers are also steeper: Australian mainstream lenders do not lend to non-resident foreign buyers, so you need specialist non-bank lenders who typically require a 30% to 40% deposit at higher interest rates.
If you are unsure how the tax rules apply to your specific situation, getting a professional view early can save you from costly surprises. Real estate law advice is one way to check your obligations before you commit to a purchase.
Common mistakes foreign buyers make with Australian apartment purchases
Exchanging contracts before FIRB approval is granted
This is the most expensive mistake you can make. Signing a binding contract without FIRB approval can lead to forced divestment — you buy the property, then the government makes you sell it — plus civil penalties up to $157,500 or three times the gain on the property. The ATO issued roughly 300 divestment orders in 2024-25, compared to fewer than 50 in 2018-19. Enforcement has stepped up sharply. The fix is simple: make your contract conditional on FIRB approval and do not exchange until you have the written no-objection notice in hand.
Underestimating the total cost by 10% to 20%
Many foreign buyers budget for the apartment price and the FIRB fee but forget the state surcharge, standard stamp duty, legal fees, and the higher deposit. On a $1 million apartment in Victoria, the 8% surcharge alone adds $80,000. Standard stamp duty adds another $40,000 or so. The FIRB fee on that price bracket is $30,300. That is $150,300 before you pay a cent toward the property itself. The most common surprise I see is buyers who plan for a 20% deposit but end up needing 30% to 40% because of lender restrictions on non-resident loans.
Assuming your visa status will stay the same
Temporary residents can buy one established dwelling as a principal place of residence, but they must sell it when they leave Australia permanently. If your visa status changes — for example, if a student visa expires and you do not transition to permanent residency — you may be forced to sell. The same applies if you buy a new apartment as a temporary resident and later lose your visa. Plan for the exit before you enter the purchase. The rules under the Foreign Acquisitions and Takeovers Act 1975 tie ownership to residency status, not to your intentions.
Buying an established apartment thinking the ban has exceptions for personal use
The ban on established dwellings from 1 April 2025 to 30 June 2029 has very few exceptions. Temporary residents used to be able to buy one established home as a principal place of residence, but that pathway has been narrowed significantly. The main exceptions now are for redevelopment that adds at least 20 new dwellings, inherited property, and joint purchases where one spouse is an Australian citizen or permanent resident. Buying an existing apartment for your own use is not an exception. If the property has been lived in before, it is almost certainly off-limits until the ban lifts.
If you are unsure whether your situation qualifies for an exemption, legal advice on foreign buyer rules can help you avoid a forced sale.
How to buy an apartment in Australia as a foreign buyer in 2026
Confirm your FIRB status and identify eligible property
Your first step is to determine whether you count as a foreign person. Australian citizens and permanent residents are not foreign persons. New Zealand citizens on a Special Category Visa are exempt from FIRB. Everyone else — temporary visa holders (student, working holiday, 482/457, graduate), non-resident foreign nationals, and foreign-owned companies or trusts — needs FIRB approval. Once you know your status, focus your search on new dwellings, off-the-plan apartments, or vacant land with a build commitment within four years. Developers sometimes hold a New Dwelling Exemption Certificate (NDEC), which simplifies the approval process for off-the-plan purchases.
Apply to FIRB before you exchange contracts
The application is made online through the ATO Foreign Investment portal. You will need identification, visa details, property information, and your intended use. The fee is non-refundable and scales with the property value. For a property valued up to $1 million, the fee is $15,100. For $1 million to $2 million, it is $30,300. The standard processing time is 30 days, but it can stretch to 90 days in some cases. The approval is valid for 12 months, and you must sign unconditional contracts within that period. Do not exchange contracts before you receive the written no-objection notice.
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| Property Value | FIRB Application Fee (New Dwellings) | FIRB Application Fee (Established Dwellings – where allowed) |
|---|---|---|
| Up to $1,000,000 | $15,100 | $45,300 |
| $1,000,001 – $2,000,000 | $30,300 | $90,900 |
| $2,000,001 – $3,000,000 | $60,600 | $363,600 |
| $3,000,001 – $5,000,000 | $121,200 | $818,100 |
| $5,000,001 – $10,000,000 | $272,700 | — |
| Over $10,000,000 | Tiered | — |
Secure financing with the right lender
Australian mainstream banks do not lend to non-resident foreign buyers. Specialist non-bank lenders offer foreign national loans but at higher interest rates and with deposit requirements of 30% to 40%. Temporary residents on eligible visas may access some mainstream lenders with a 20% deposit for new dwellings, but the pool is small. If you earn foreign-currency income, lenders will typically shade your income by 20% to 40% when calculating how much you can borrow. Managing mortgage stress becomes harder when the deposit is larger and the interest rate is higher, so factor that into your budget from the start.
Post-settlement compliance and the future of FIRB rules
After settlement, you must ensure the property is occupied or genuinely available for rent for at least 183 days per year, or you will face a vacancy fee equal to double the original FIRB application fee. If you bought as a temporary resident and later leave Australia permanently, you must sell the property. The ban on established dwellings is legislatively time-limited to 30 June 2029, but both major parties have signalled support for making it permanent and strengthening the foreign ownership register. The regime is likely to remain strict, so buying with a long-term view under current rules is the only sensible approach. If you need help navigating the ongoing obligations, landlord and tenant law advice can clarify what is required.
Can I buy an apartment with my Australian spouse to avoid FIRB? ▾
What happens if my FIRB application is rejected? ▾
Do I need FIRB approval for an off-the-plan apartment that won’t be built for two years? ▾
Can I rent out my apartment if I bought it as a principal place of residence? ▾
What is the difference between a new dwelling and an established dwelling? ▾
Do I still pay capital gains tax when I sell my apartment as a foreigner? ▾
The 2029 deadline and what it means for your buying strategy
The ban on established dwellings runs until 30 June 2029, but the political consensus is clear: both major parties support making the restrictions permanent and tightening the foreign ownership register further. Buying a new apartment or off-the-plan now means you are operating under the most restrictive regime in decades, and there is no sign it will loosen. The high costs — between FIRB fees, state surcharges, and non-bank lending rates — mean the investment needs to work harder to justify itself. If you are buying to live in as a temporary resident, plan for the eventual sale when your visa status changes. If you are buying as an investment, focus on new developments in states with lower surcharges, like Queensland or the ACT, where the cost gap is smaller.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Maximizing Your Rental Yield: Tips for Buying an Apartment in Australia.
Sources and Further Reading
Apartment Buying in Australia: The Ultimate Checklist for Smart Decisions — A full step-by-step guide covering inspections, finance, and settlement for anyone buying an apartment in Australia.
Essential Tips for Buying a High-Rise Apartment in Australia — What to check in strata reports, building defects, and common high-rise pitfalls.
PropBuyAI (2026). FIRB Rules Buying Australian Property 2026. 🔗
Mortgagefy Australia (2026). FIRB Rules for Foreign Property Buyers in Australia. 🔗
Migration Directory Australia (2026). Buying Property in Australia as a Migrant. 🔗
Buyers Scout (2026). Can Foreigners Buy Property in Australia? 🔗
