In 2025, the Australian federal government introduced significant changes to the property purchase policy for overseas persons, banning foreign buyers from purchasing established residential properties. This new regulation has certainly created uncertainty for many overseas buyers looking to invest or live in Victoria.

However, this does not mean that all opportunities for overseas buyers in Victoria have been lost. This article will provide a detailed look at the new policy and offer a clear guide to your remaining property options.

The New Policy: Banning the Purchase of 'Established Properties'

The core of the new regulation prohibits overseas non-residents from buying established residential dwellings.

The policy is designed to keep second-hand properties available for Australian citizens and permanent residents, helping to ease housing supply pressures. However, overseas buyers are still legally permitted to buy the following types of properties.

Your Property Options in Victoria

Under the new regulations, overseas buyers still have a few primary options for purchasing property:

1. New Dwellings

This is the main channel for overseas buyers. You are still able to purchase new residential properties, which include:

• Off-the-plan properties: Homes that are purchased before construction is complete.

• Newly completed homes: Properties that have been recently built and have not been previously occupied.

2. Vacant Residential Land

Overseas buyers can purchase vacant residential land, but you must commit to building a new dwelling on that land within a specific timeframe. This provides an opportunity for buyers who want to build a custom home.

3. Commercial Properties

The new regulations are restricted to residential properties. Overseas buyers can still freely purchase commercial properties, such as:

• Office spaces

• Retail storefronts

• Warehouses or factories

Exemptions to the New Rules

It's important to note that certain groups are exempt from the new rules and can purchase any type of residential property, just like an Australian citizen:

• Australian permanent residents

• New Zealand citizens

• Spouses of Australian citizens

Why Professional Legal Advice is Crucial

Although the new rules simplify some aspects, the legal framework for overseas buyers is still complex. The type of property and the buyer's visa status can all affect the transaction.

As your conveyancing experts, DY Conveyancing Melbourne can provide the professional legal guidance to ensure your property decisions are compliant. We offer fixed-fee conveyancing services and bilingual support to handle all the legal documents and make your transaction clear and smooth.