Since 1 April 2025, foreign persons have generally been unable to buy established homes in Australia. The ban now runs until 30 June 2029. For an apartment owner in Darlinghurst, Surry Hills or Potts Point, the useful question is who can still buy, and how to reach them. Australian citizens, permanent residents and eligible New Zealand citizens remain in the market. A strong campaign starts with the buyers your particular apartment suits, then gives them clear reasons to choose it. Foreign buyer ban selling apartment.
The rule in two sentences
Foreign persons, including temporary residents and foreign-owned companies, are generally banned from buying established dwellings, subject to limited exceptions. The Government extended the ban from its original end date of 31 March 2027 to 30 June 2029.
Living overseas does not automatically make someone a foreign person for buying purposes. For the separate tests, see are you a foreign person?
How big was the foreign buyer market?
The ATO’s 2024–25 register figures put foreign persons at 0.5% of all Australian residential purchases, down from 0.8% a year earlier. They recorded 4,623 purchases, compared with 6,265 in 2023–24. Established homes accounted for 22% of foreign purchases, down from 32.9%. These figures are summarised in the report announcement.
That gives sellers some perspective: foreign persons represented a small share of purchases nationally. It does not establish the effect on prices in your building. The reporting year includes only the first three months of the ban, so it cannot show a full year’s impact either.
Foreign demand also remains relevant to new housing. NAB’s Q3 2026 survey estimated foreign buyers at 5.0% of buyers in NSW new developments. That is a survey of property professionals, not the same measure as the ATO’s registered transactions, and does not prove buyers shifted from
established homes.
Who can still buy your apartment
Several groups remain eligible under the federal foreign investment rules:
Australian citizens living here or overseas. An Australian working in Singapore, Hong Kong, London or New York can still buy an established apartment.
Australian permanent visa holders and eligible New Zealand citizens. The New Zealand exemption covers people who hold, or are eligible for, a Special Category Visa.
Buyers purchasing with an eligible spouse as joint tenants. The spouse must be an Australian citizen, Australian permanent resident or eligible New Zealand citizen. Their solicitor should confirm the exemption and ownership structure.
Eligible first home buyers. The federal 5% Deposit Scheme and NSW transfer duty concessions can support purchases of established apartments, subject to their separate requirements.
Local investors. They can still buy established apartments, although the tax treatment of some new purchases changes from July 2027.
Federal buying eligibility is separate from tax residency and the rules covered in our guide to NSW surcharges and the vacancy fee.
Who generally cannot buy
Temporary residents on student or temporary work visas generally cannot buy an established apartment, even as their home. Foreign nationals overseas who do not qualify for an exemption, and companies or trusts that meet the foreign person rules, are also generally restricted.
Foreign persons can still seek approval for eligible new or near-new dwellings, off-the-plan apartments and vacant residential land. A renovation does not automatically turn an established apartment into a new dwelling for these rules.
Which apartments may feel it most
Start with your building’s sales history. Ask your agent which buyer groups competed for comparable apartments and what they know about current enquiries. Use reliable information from previous transactions and buyer conversations; names or overseas contact details alone do not establish someone’s eligibility.
A building that previously attracted substantial demand from buyers now excluded may need a different campaign. Another may already draw mainly local owner-occupiers and investors. Compare recent sales, competing listings and inspection feedback before deciding the ban warrants any change to your price expectations.
How to market an established apartment now
Make the apartment easy for Australian expats to assess
An Australian buyer abroad needs enough detail to make a decision remotely. Plan digital advertising and appointments around relevant time zones, with video walk-throughs and live virtual inspections available.
Show the outlook, natural light, storage and common areas. Make the contract and strata information available promptly so the buyer’s solicitor can review them without waiting for an inspection in Sydney.
Understand first home buyer thresholds
Since 1 October 2025, the Australian Government 5% Deposit Scheme has offered unlimited places and no income caps. Eligible buyers can purchase with a minimum 5% deposit without lenders mortgage insurance. Sydney’s property price cap is $1.5 million; both the purchase price and lender-assessed value must meet the cap, and lending criteria still apply.
Under the NSW First Home Buyers Assistance Scheme, eligible buyers pay no transfer duty on homes valued up to $800,000. A concession applies above $800,000 and below $1 million.
Those thresholds help explain buyers’ budgets. An eligible buyer considering an $820,000 apartment may receive partial duty relief; the concession ends at $1 million. Base your price guide on sales evidence and a reasonable estimate. A lower advertised guide does not change the actual price or value used to assess eligibility.
Give owner-occupiers useful detail
Show how the apartment works as a home. Include room dimensions, usable storage and the outlook from the living area. Explain the building’s upkeep and any planned works. For a tenanted apartment, clarify the lease position and possible possession timing before promising a move-in date.
For investors, provide the current rent, lease expiry and actual strata levies, with any estimated rental figure clearly labelled. That helps buyers compare cash flow without relying on a headline gross yield.
Investors remain part of the audience. However, from 1 July 2027, losses on most established residential investments acquired from 7:30pm AEST on 12 May 2026 will be restricted to offsetting residential property income, with unused losses carried forward. Earlier acquisitions and eligible new builds retain different treatment, with other exceptions. Our investment selling guide covers the 1 July 2027 tax changes; buyers should check their position with an accountant.
Prepare to assess early offers
Agree with your agent how you will compare an offer with recent sales and competing buyer interest. Check the conditions and proposed settlement date as well as the price. Our guide explains how to judge an early offer.
Competing with new apartments
New apartments can reach foreign buyers who cannot purchase established stock. Eligible new builds also retain access to negative gearing against other income under the 2027 reforms. Those differences make new developments worth watching when assessing competing listings.
An established apartment needs to show its own advantages clearly:
- Buyers can inspect the actual rooms, outlook and finishes before committing.
- A completed apartment avoids waiting for construction, although occupation depends on the tenancy and settlement terms.
- Strata records provide a history of maintenance, finances and decisions for buyers to investigate.
- An established location or distinctive architecture may offer something difficult to replicate in a new development.
For an Art Deco apartment in Potts Point, that might mean original detailing and a well-kept entrance. For a Surry Hills warehouse conversion, it could be ceiling height and generous living space. Describe what the apartment actually offers and support it with photographs. Our guide to living in Potts Point provides further neighbourhood context.
Have strata information available from launch, including levies, planned works and known issues. Buyers should still carry out their own checks, but accessible records help them understand what they are buying.
If you’re selling from overseas
The ban restricts buying, so overseas owners can still sell. For contracts signed from 1 January 2025, buyers generally withhold 15% of the price at settlement unless the seller provides an Australian tax resident clearance certificate or an ATO variation changes the amount. Our guide to selling from overseas explains the paperwork and capital gains tax considerations; speak to your accountant before listing.
Find out who is likely to buy your apartment
Nicholas can compare recent sales in your building and street, assess competing listings and explain which buyers your campaign should reach. Explore our guides to selling in Darlinghurst and selling in Surry Hills, or arrange an appraisal of your apartment.
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Frequently asked questions
Can foreigners buy property in Australia in 2026?
Foreign persons, including temporary residents and foreign-owned companies, are generally banned from buying established homes from 1 April 2025 to 30 June 2029, subject to limited exceptions. They can still seek approval for eligible new or near-new dwellings, off-the-plan apartments and vacant residential land.
How long does the foreign buyer ban last?
The ban started on 1 April 2025 and runs until 30 June 2029. It was originally due to end on 31 March 2027, before the Government extended it in the 2026–27 Budget.
Can I still sell my apartment if I live overseas?
Yes. Overseas owners can still sell. Buyers generally withhold 15% of the price unless an Australian tax resident seller provides an ATO clearance certificate or an approved variation changes the amount. Withholding is a credit towards tax, not necessarily the final tax bill. Discuss capital gains tax with your accountant before listing.
Can Australians living overseas buy an established home?
Yes. Australian citizens can buy established homes regardless of where they live. Australian permanent visa holders and New Zealand citizens who hold, or are eligible for, a Special Category Visa are also exempt from the residential foreign investment approval requirement. Separate tax rules may still apply.
Does the foreign buyer ban affect apartment prices in Darlinghurst and Surry Hills?
National figures alone cannot establish the ban’s effect on local apartment prices. Foreign persons accounted for 0.5% of Australian residential purchases in 2024–25, but that year included only three months of the ban. Assess your building’s buyer demand, comparable sales and competing listings before changing your price expectations.
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Disclaimer
The data, figures, and market statistics referenced in this article were current at the time of publication and are sourced from third-party providers including CoreLogic/Cotality, Domain, realestate.com.au, HtAG Analytics, PropTrack, and NSW Fair Trading, among others. Property market data changes frequently, median prices, rental yields, vacancy rates, clearance rates, and days on market figures are updated regularly by their respective providers and may have changed since this article was published. Readers are encouraged to verify all figures directly with the cited sources before making any decisions.
This article is intended as general information only. It does not constitute financial, investment, legal, or taxation advice. The information provided does not take into account your individual circumstances, objectives, financial situation, or needs. Before making any property investment, purchase, sale, or management decision, you should seek independent advice from a qualified financial adviser, solicitor, or property professional licensed in your state.
Murray Property is a licensed real estate agency operating in NSW. We are not financial advisers. References to rental yields, capital growth, or investment returns are based on publicly available market data and historical performance, which is not a reliable indicator of future results.
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