Australia will ban foreigners from buying second-hand homes for two years, and may extend it later

The Australian government will ban foreign investors from buying second-hand homes for the next two years.

From April 1, foreign investors will be banned from buying second-hand homes until March 31, 2027, Housing Minister Clare O’Neil said in a statement on Sunday. Then it will assess whether to extend the restriction.

Australia has one of the heaviest housing affordability in the world, and soaring house prices will become a key election issue amid a broader cost of living crisis, especially for young voters who worry they will never be able to afford a home.

Sydney house prices have risen nearly 70% in the past 10 years, and the median house price is currently about A$1.2 million ($762,000), according to real estate consultant CoreLogic Inc. Rents are also rising.