Foreign investors are scaling back their spending on Australian real estate by more than $1.6 billion over the year, with Chinese investment alone expected to decline by more than $1 billion. Despite this pullback, international interest in Australian homes is showing a notable increase.
Data from the Foreign Investment Review Board (FIRB) revealed approvals for 929 residential property transactions worth $1.2 billion for foreign buyers in the first quarter of 2025, bringing total sales for the 2025 financial year to approximately $3.7 billion.
China led the list of buyers with more than 1,000 transactions valued at $1.1 billion, followed by Taiwan at $300 million. Vietnam, the United States, Indonesia, and Hong Kong each recorded purchases worth around $200 million.
Despite these figures, international investment is projected to fall by $1.66 billion compared to the 2024 financial year, driven largely by a sharp $1.13 billion slowdown in Chinese investment. Foreign property investment is subject to approval by FIRB, while the purchase of existing homes by foreign buyers is currently restricted, except in limited circumstances.
This ban came into effect last April, meaning its full impact is not yet reflected in the current data. Separate figures indicate a 3.4% increase in searches by international buyers, particularly from New Zealand, the United States, Singapore, Hong Kong, and Canada.
