Australia’s temporary ban on foreign purchases of established homes has been extended, keeping the restrictions in place until 30 June 2029.
For Tasmanian property owners, the restrictions largely prevent foreign persons from purchasing established dwellings while continuing to allow investment in areas that can contribute to new housing supply. (Australian Taxation Office)
What has changed?
The restriction on foreign purchases of established dwellings began on 1 April 2025 and was originally scheduled to end on 31 March 2027. As part of the 2026–27 Federal Budget, the Australian Government extended the ban until 30 June 2029.
The rules generally apply to foreign persons, including temporary residents and foreign-owned companies, although limited exceptions remain.
An established dwelling is broadly an existing dwelling on residential land that does not meet the definition of a new dwelling.
Does this mean overseas buyers cannot buy Tasmanian property?
It is important to separate an overseas or international buyer from a person who is considered a ‘foreign person’ under Australia’s foreign investment rules. Citizenship, residency and the structure through which a property is purchased can all affect how the rules apply.
Foreign buyers can also continue to purchase certain types of residential property, subject to the relevant requirements. These can include new or near-new dwellings, vacant residential land intended for development and, in some circumstances, established property for redevelopment.
The broader policy remains focused on directing foreign investment towards property that adds to Australia’s housing supply rather than transferring ownership of existing homes.
Will the ban reduce the pool of buyers for Tasmanian sellers?
For some properties, potentially. For others, there may be little practical difference. The important point is that Tasmania does not have one uniform buyer market.
A home primarily appealing to buyers already living in its local area may have a very different audience from a distinctive coastal property, larger rural holding or high-value residence marketed across Tasmania and interstate.
That makes understanding the likely buyer profile particularly important when planning a campaign.
If a property has historically attracted enquiry from overseas, the next question is not simply whether international interest still exists. It is whether those prospective purchasers are eligible to buy the property under the current rules.
For sellers, that distinction can help keep expectations around enquiry, competition and campaign strategy realistic.
International marketing still has a role
The restriction also does not mean there is no value in presenting suitable Tasmanian property to an international audience.
International marketing and foreign ownership are two different things.
Australians living overseas, permanent residents, people planning to move to Tasmania, and other eligible purchasers can still be part of a property’s wider audience, depending on their individual circumstances. Foreign purchasers may also remain active in parts of the market that fall outside the established dwelling ban.
For the right property, broader exposure will still remain relevant. What changes is the need to understand the audience behind that enquiry rather than treating all overseas interest in the same way.
The extension of the foreign purchase ban to 2029 adds another consideration to that process, but good property marketing remains grounded in the same principle: understand the market first, then build the campaign around it.
Speak to our skilled sales team about finding and targeting the right audience for your property.
Helpful and related links
- ATO: Ban on foreign purchases of established dwellings
- ATO: Types of property a foreign person can buy
- ATO: Are you a foreign person buying property in Australia?
- Foreign Investment: Changes to foreign purchases of established dwellings
- Foreign Investment: Understanding who is considered a foreign person
- Foreign Investment: Residential land guidance
This article provides general information only and should not be relied upon as legal, taxation or financial advice.
