Canberra - Saba:
The Australian government announced a ban on the sale of residential real estate to foreign parties in the country for two years.
Australian Housing Minister Claire O'Neill told Sky News on Sunday: "The government announces that we will ban foreign ownership of real estate in Australia," describing the ban as "an important step."
She added: "This is not a magic solution to the housing crisis, because there is no magic solution, but I strongly believe that in light of the housing pressures that Australians face today, all efforts of the Australian government should focus on securing housing for Australians, and when possible, facilitating home ownership for a larger segment of young Australians."
The ban will start from April 1, and foreign companies and temporary residents will be prevented from purchasing existing residential properties in Australia.
O'Neill explained that in the 2022-2023 financial year, foreigners bought about 1,800 existing homes.
“Over the course of two years, we will unlock… effectively double that number for Australians to own homes,” she said.
The Sydney Morning Herald reported that projects with 20 or more residential buildings would be exempt from the ban.
The Australian Taxation Office said that between July 2022 and June 2023, there were 5,360 residential property purchases, worth a total of A$4.9 billion ($3.1 billion). Of these, 1,823 were “existing homes”.
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