Residential Real Estate for Redevelopment

Established dwellings may be acquired for the purpose of redevelopment (that is, to demolish the existing dwelling and build new dwellings). This does not include refurbishing or renovating the existing dwelling. Proposals for redevelopment are normally approved subject to the following conditions:

• the proposal must provide for an increase in the housing stock, that is, an increase in the number of dwellings;
• the existing residence cannot be rented out prior to demolition and redevelopment; and
• the existing dwelling must be demolished and continuous substantial construction of the new dwellings must commence within 24 months.

A redevelopment proposal which does not increase the number of dwellings may be approved where it can be shown that the existing dwelling is at the end of its economic life (that is, derelict or uninhabitable), since constructing a new dwelling would effectively increase the housing stock. To demonstrate that the property is uninhabitable and must be demolished, a valuation of the existing structures by a licensed valuer and/or a builder’s report is generally required. Photographs and other forms of evidence may also be required. Approval of such proposals would be subject to the same conditions outlined above.

Once these conditions have been fulfilled, the new dwellings that have been constructed may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use.

Who is exempt?

Refer to Exemptions for acquisitions which do not require notification and approval.

How to Apply

For information on how to apply (including application forms), please see How to Apply.