Residential real estate means all Australian residential land and housing other than commercial properties (such as, offices, factories, warehouses, hotels, restaurants and shops) and rural properties (that is, land that is used wholly and exclusively for carrying on a substantial business of primary production). Acquisitions of ‘hobby farms’ and ‘rural residential’ blocks by foreign interests are considered to be residential real estate.
The Government seeks to ensure that foreign investment in residential real estate increases the supply of dwellings and is not speculative in nature. The policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (that is, new developments such as house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers.
The effect of the more restrictive policy measures on developed residential real estate is twofold. Firstly, it helps reduce the possibility of excess demand building up in the existing housing market. Secondly, it aims to encourage the supply of new dwellings, many of which would become available to Australian residents, either for purchase or rent. The cumulative effect should be to maintain greater stability of house prices and the affordability of housing for the benefit of Australian residents.
Refer to Exemptions for acquisitions which do not require notification and approval.
This section outlines the eligibility criteria relating to specific categories of residential real estate:
If you are eligible for approval under the policy, then the acquisition will be approved subject to legally binding conditions according to the category of property (if applicable). Your application must include the relevant Declaration confirming that you meet the eligibility criteria and that you will abide by the relevant conditions.
If you are not eligible for approval under the policy, then the acquisition is generally considered to be contrary to the national interest and will not normally be approved.
For information on how to apply (including application forms), please see How to Apply.
The Government is committed to switching to electronic processing of applications wherever possible, in order to improve the services it provides (by reducing unnecessary delays) as well as to help the environment (by reducing the use of paper). In line with this strategy, and in accordance with the Assistant Treasurer's announcement on 18 December 2008 to streamline the administrative processes for residential real estate acquisitions which meet the eligibility criteria, the decision advice for such applications (usually an 'approval' or 'conditional approval') will be sent via email where an email address has been provided. Such emails represent official advice of the Government's decision under the Foreign Acquisitions and Takeovers Act 1975.
If you do not want the decision advice to be sent via email, please clearly indicate this in the covering email or fax enclosing your application. Please note that decision advices sent by ordinary post will look the same as email advices (that is, they will not include Government letterhead or a signature) but may take considerably longer to receive.