Australia is the sixth-largest country in the world by land area, covering approximately 7.69 million square kilometers (2.97 million square miles). Renowned for its unique geography, Australia features ecosystems ranging from vibrant urban centers to lush rainforests, sprawling deserts, and stunning coastlines along the Indian and Pacific Oceans.

Australia's regions include:

• Six states and two territories;
• World-class cities like Sydney, Melbourne, and Brisbane;
• Iconic natural landmarks like the Great Barrier Reef, Uluru, and the Outback.

The country operates as a federal parliamentary democracy, with its states and territories maintaining substantial control over areas like education, healthcare, and property regulations.

Australia's population is estimated at 27 million people as of 2025, bolstered by high levels of immigration, which contributes significantly to its cultural diversity and economic growth.

Population distribution across Australia's states and territories

Why invest in Australia?

Australia’s real estate market is a global favorite, known for its economic resilience, high standard of living, and global reputation for safety and inclusivity. Major cities like Sydney and Melbourne consistently rank among the most livable globally, while regional cities such as Adelaide and Hobart offer increasingly attractive investment opportunities.

Australia is known for its:

• Stable and transparent legal framework: Property rights are well-defined and protected.
• High immigration levels: Australia welcomes skilled workers, international students, and entrepreneurs, maintaining strong housing demand.
• Diverse climate: From tropical north Queensland to temperate southern states, there’s a climate for every preference.

Tourism plays a critical role in the Australian economy. As of 2024, the country welcomed approximately 7.4 million international visitors, with top destinations including the Sydney Opera House, the Great Ocean Road, and Kakadu National Park (source). This has boosted the short-term rental market in tourist hubs like Sydney and the Gold Coast.

Australia's property market has shown resilience despite global economic shifts. While urban property prices surged in the early 2020s, recent years have seen stabilization, coupled with government initiatives to increase housing supply and affordability. These factors make Australia a highly attractive option for both residential and investment property buyers.

• Financial markets anticipate that the Reserve Bank of Australia (RBA) will implement interest rate cuts in the second half of 2025. These reductions are projected to provide relief to homeowners with mortgages and may stimulate increased buyer activity in the property market.
• Overall, property prices are expected to continue rising, though at a moderated pace compared to previous years. Nationally, house prices are forecasted to increase by approximately 4% in 2025, a slight decline from the 5.5% growth observed in 2024. Mid-sized cities like Perth and Adelaide are predicted to outperform, with potential growth between 3% and 6%, while Sydney and Melbourne may see more modest increases or even slight declines.
• Regional areas are gaining prominence, with several suburbs expected to experience significant growth. Factors such as affordability, lifestyle appeal, and infrastructure developments are driving demand in these locations. For instance, suburbs close to cities, beaches, and infrastructure are identified as promising investment locations.
• The luxury property segment is undergoing a transformation, with some high-end properties experiencing longer times on the market and price adjustments. This trend indicates a shift towards more realistic pricing and buyer expectations in the premium market sector.
• Efforts to address housing shortages are underway, with developments such as over-50s lifestyle communities aiming to provide affordable downsizing options and alleviate market pressures. For example, a new over-50s lifestyle community in Townsville is proposed to offer affordable housing solutions.

Average cost of buying property in Australia in 2025

Note: These figures are projections for 2025 and may vary based on market conditions.

These averages provide insight into current trends in the Australian real estate market. However, prices can vary widely depending on factors such as proximity to city centers, amenities, and neighborhood desirability.

You can monitor the latest trends and property price updates on our dedicated page:

Australia offers a diverse range of states and territories, each with its unique appeal in terms of lifestyle, culture, and real estate opportunities. Here are some of the most popular areas to consider:

Popular regions for investment and living

• New South Wales (NSW): Home to Sydney, Australia’s largest and most iconic city, NSW offers luxury city apartments, stunning coastal homes, and suburban properties in areas like the Blue Mountains. Sydney's real estate is particularly appealing for professionals and investors, although it comes at a premium.

• Victoria: Victoria, with Melbourne as its capital, is known for its vibrant arts scene, coffee culture, and diverse property options. Buyers can find urban apartments, trendy townhouses in inner-city suburbs, and vacation homes along the Great Ocean Road or in the Yarra Valley wine region.

• Queensland: Famous for its sunny weather and relaxed lifestyle, Queensland attracts those seeking beachfront properties on the Gold Coast or Sunshine Coast. Brisbane, the capital, is growing as a hub for families and young professionals looking for suburban homes and modern apartments.

• Western Australia (WA): With Perth as its center, WA is known for its expansive landscapes and pristine beaches. It offers affordable housing in the city, countryside estates in the Margaret River region, and unique coastal properties.

• South Australia: Adelaide, the capital, is renowned for its wine regions, affordability, and livability. The region offers a mix of historic homes, modern suburban properties, and rural vineyards.

• Tasmania: Tasmania’s natural beauty and growing popularity make it an attractive option for those seeking tranquility. Hobart, the capital, has a mix of waterfront homes, quaint cottages, and suburban properties, while Launceston offers similar charm with lower prices.

• Australian Capital Territory (ACT): Canberra, the nation’s capital, is ideal for those seeking a quieter yet cosmopolitan lifestyle. Known for its planned layout and green spaces, it offers a mix of modern apartments and family-friendly homes.

• Northern Territory: Known for its rugged outback and tropical climate, this region is perfect for adventurous buyers. Darwin, the capital, offers affordable housing and investment opportunities, while remote areas appeal to those looking for off-grid properties.

Yes, New Zealanders can purchase property in Australia, and they benefit from unique advantages compared to other foreign buyers, thanks to the Trans-Tasman Travel Arrangement (TTTA). Here's an overview updated for 2025:

FIRB approval

New Zealand citizens do not need to obtain approval from the Foreign Investment Review Board (FIRB) to purchase property in Australia. This exemption applies to all types of residential property, including established dwellings, new dwellings, and vacant land.

Types of properties allowed

New Zealanders can purchase any type of property without restrictions:

• Established dwellings: Unlike other foreign buyers, New Zealand citizens can freely purchase existing homes without requiring redevelopment plans.
• New dwellings and off-the-plan properties: Fully accessible with no additional approvals.
• Vacant land: Available for purchase without conditions, although general development regulations still apply.

Financing options

Securing a mortgage as a New Zealand citizen is generally straightforward. Australian banks often treat New Zealanders similarly to Australian residents, making it easier to access loans with competitive terms. Non-bank lenders and international banks also offer financing options.

Taxes and fees

While New Zealand citizens are exempt from foreign purchaser surcharges in most states, they should still account for general property-related taxes, including:

• Stamp duty: A government tax on property transactions, which varies by state or territory but does not include foreign surcharges.
• Land tax: Annual tax on the value of land, with no foreign owner penalties for New Zealand citizens.
• Capital gains tax (CGT): Applicable on profits made from selling the property, treated the same as for Australian residents.

Recent developments

As of 2024, there have been discussions about restricting foreign purchases of property to address housing affordability. These discussions primarily target non-residents and do not impact New Zealand citizens under the TTTA. However, it is still important to stay updated on policy changes.

1. Obtain a Foreign Investment Review Board (FIRB) approval

As a foreigner looking to purchase property in Australia, you are generally required to obtain approval from the Foreign Investment Review Board (FIRB) before buying residential real estate. This ensures compliance with Australian regulations governing foreign ownership of property.

To apply for FIRB approval:

• Visit the official Australian FIRB website and complete the online application form for foreign property investment.
• Pay the applicable FIRB application fee (fees vary depending on the value of the property and range from AUD 4,000 to AUD 150,000 as of 2025).

Approval is usually granted within 30 days but can take up to 90 days in some cases. Make sure to obtain approval before signing any contracts, as buying property without FIRB approval can result in significant penalties.

2. Open an Australian bank account

Having an Australian bank account is essential for managing transactions related to the property purchase, such as paying the deposit, settlement costs, taxes, and ongoing expenses like utilities.

To open an Australian bank account, you will typically need:

• A valid passport;
• Proof of identity, such as a driver’s license or another government-issued ID;
• Your Tax File Number (TFN) or evidence of application for one (optional but recommended for tax purposes);
• Proof of address in your home country or Australia (if available).

Many Australian banks allow non-residents to open accounts remotely, so you can set up your account before arriving in the country.

3. Start searching for properties

Explore online listings on Properstar to find properties that match your criteria. You can use filters to refine your search based on location, property type, budget, and more.

Hiring a licensed real estate agent is strongly recommended. A local agent can:

• Provide insights into the Australian property market and assist with negotiations;
• Help you understand state-specific rules and property restrictions;
• Verify compliance with FIRB regulations;
• Guide you through the contract and settlement process.

Be aware that foreign ownership restrictions apply to certain types of properties in Australia. For example:

• Foreign buyers are generally restricted to purchasing new or off-the-plan properties or vacant land for development.
• Restrictions vary by state and territory, so it’s essential to understand the rules specific to your desired location.

4. Find the right real estate agent

The right real estate agent in Australia can provide critical insights into the local market, help you find properties that match your needs, and guide you through the negotiation and purchasing process.

Here’s how to select the best professional for your property search:

• Local expertise: Choose agents who have a strong understanding of the area where you intend to buy. They should be knowledgeable about property values, local amenities, zoning regulations, and any specific rules or restrictions related to foreign buyers in the region.
• Experience and credentials: Work with agents who are licensed by their state or territory’s regulatory body, such as:
  • NSW Fair Trading (New South Wales),
  • Consumer Affairs Victoria (Victoria),
  • Office of Fair Trading Queensland (Queensland),
  • Or other relevant state agencies. Verify if they are members of the Real Estate Institute of Australia (REIA) or its affiliated state institutes, which ensures adherence to professional standards and ethics.

You can search for real estate agents through Properstar: we list hundreds of licensed professionals across Australia. Working with a qualified agent ensures you have the expertise and support needed throughout the buying process.

5. Conduct property viewings

Visit potential properties in Australia to evaluate their condition, location, and suitability for your needs. It is important to physically inspect the property and its surroundings to assess any potential repairs or renovations required. If you cannot attend in person, many agents offer virtual tours or videos, which can be an excellent option for remote buyers.

6. Legal checks and due diligence

The Land Titles Office in each Australian state or territory is essential for verifying the legal status of a property. Key checks include:

• Confirming the property is free of encumbrances, such as liens, mortgages, or unpaid rates.
• Ensuring the seller has legal ownership and the right to sell the property.
• Verifying zoning regulations to ensure the property can be used as intended.

Your conveyancer or property lawyer will perform a title search to identify any legal issues with the property. Additionally, hiring a building and pest inspector is recommended to:

• Assess the structural integrity of the property.
• Check for pest infestations, such as termites, which can cause significant damage.
• Evaluate the condition of essential utilities and safety features.

7. Make an offer

Work with your real estate agent to make an offer on the property. Offers in Australia are often conditional, meaning they include terms such as:

• Financing approval: Ensuring you can secure a mortgage.
• Building and pest inspection: Allowing you to renegotiate or withdraw if issues are identified.

Once the seller accepts your offer, you will typically pay a deposit (usually 10%) to secure the property.

8. Arrange financing (if applicable)

If you plan to use a mortgage, finalize the terms with your lender. Australian banks and lenders generally require:

• Proof of income and employment.
• A minimum deposit (often 20%-30% for foreign buyers).
• A property valuation to confirm its market value.

Some Australian banks offer tailored mortgage options for non-residents, though additional documentation and higher deposits are often required.

9. Finalize the contract of sale

Your lawyer or conveyancer will review the contract of sale, ensuring it outlines all terms and conditions clearly. This document protects your interests and ensures compliance with legal requirements. You may also need to provide FIRB approval documentation at this stage.

10. Sign the contract and pay the balance

The final step in the purchasing process is settlement, where the contract is signed, and the balance of the purchase price is paid. Your lawyer or conveyancer will:

• Confirm all legal and financial obligations are met, including taxes and fees.
• Lodge the necessary documents with the state or territory’s Land Titles Office to transfer ownership.

11. Register the property

After settlement, your lawyer or conveyancer will register the property in your name with the relevant Land Titles Office. This step secures your legal ownership and ensures the property is properly recorded in your name.

12. Pay associated taxes and fees

Property buyers in Australia must account for several taxes and fees, which vary by state or territory:

General taxes and fees

Additional costs for foreign buyers

Consult with your lawyer to fully understand the tax obligations specific to your chosen state or territory.

13. Transfer utilities

Once the property is registered in your name, arrange for the transfer or setup of utilities such as electricity, water, gas, and waste management. Many providers offer online or phone services to ensure a seamless transition.

It is highly recommended to work with a lawyer or conveyancer specializing in Australian property transactions to navigate these steps and ensure compliance with all regulations. For official guidance, visit:

• Australian Taxation Office (ATO): For information on tax requirements for foreign property buyers.
• State Land Titles Offices: For title verification and registration.
• Real Estate Institute of Australia (REIA): For resources on buying property in Australia.

Many Australian banks and financial institutions, such as Commonwealth Bank of Australia (CBA), Westpac, and ANZ, offer home loans to non-residents. However, the terms and conditions for foreign buyers differ from those for Australian residents, often requiring higher deposits, stricter documentation, and specific approvals.

Interest rates for mortgages in Australia vary based on the lender, loan type, and borrower's financial profile. As of 2025, typical rates range from 5.50% to 6.25% for fixed-rate home loans, while variable rates may start at 5.00%, depending on market conditions and Reserve Bank of Australia policies.

How to obtain a mortgage

To apply for a mortgage in Australia as a non-resident, you will typically need the following documents:

• A valid passport or government-issued ID;
• Proof of income (e.g., recent payslips, employment contracts, or tax returns);
• Recent bank statements (covering at least the last 6 months);
• A credit report from your home country (if available);
• Proof of the property deposit (held in an Australian bank account);
• Approval from the Foreign Investment Review Board (FIRB) (mandatory for foreign buyers).

It is advisable to obtain pre-approval from multiple lenders to compare interest rates and loan terms before committing to a property. Many Australian banks offer tailored services for international buyers, and some provide loan options in multiple currencies.

Special considerations for non-residents

Non-residents in Australia typically face stricter lending requirements, such as:

• Higher deposits: Foreign buyers are generally required to pay a deposit of 20%-30% of the property’s purchase price.
• Proof of funds: Banks require evidence that the deposit and associated costs come from the buyer’s own funds, not loans.
• Loan restrictions: Certain lenders may cap the loan-to-value ratio (LVR) for non-residents or impose limits on the maximum loan amount.

Mortgage types available to non-residents

• Fixed-rate mortgages: These provide a consistent interest rate for a set term (e.g., 1-5 years), offering payment stability.
• Variable-rate mortgages: The interest rate fluctuates with the market, potentially offering lower initial payments but with higher risk over time.
• Principal and interest loans: These require repayments of both the loan principal and interest, reducing the balance over time.
• Interest-only loans: These allow payments of only the interest for a set period, but the principal remains unpaid during this time.

Other costs to consider

When budgeting for a property purchase in Australia, consider additional expenses such as:

• Stamp duty: A significant cost, typically calculated as a percentage of the property’s value. Foreign buyers may face a surcharge (e.g., 7%-8% in some states like NSW and Victoria).
• Legal fees: Usually range between AUD $2,000 to $5,000.
• Building and pest inspection fees: Approximately AUD $400 to $700.
• Foreign buyer surcharges: Additional costs imposed on non-resident buyers, depending on the state or territory.
• Loan application fees: Some lenders charge processing or administration fees for non-resident loans.

Working with a broker or financial advisor

Hiring an Australian mortgage broker who specializes in non-resident home loans can streamline the process and help you secure the most competitive terms. Brokers have access to a wide network of lenders and can navigate the specific requirements for foreign buyers.

For more details, consult the official websites of Australian banks, the Australian Taxation Office (ATO) for tax-related information, or a professional financial advisor familiar with non-resident property purchases.

1. Strict foreign investment rules

Foreign buyers must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing residential property.

2. Higher costs for foreign buyers

Foreign buyers face additional costs compared to Australian residents, such as:

• Stamp duty surcharges: States like Victoria, New South Wales, and Queensland impose foreign buyer surcharges on top of regular stamp duty (7%-8% in most cases).
• Vacant residential property taxes: In some areas, properties left unoccupied for more than six months may attract additional taxes.
• Higher deposits and loan restrictions: Non-resident buyers often need to provide a deposit of 20%-30% or more and may face restrictions on the loan-to-value ratio (LVR).

3. Currency and financing risks

For non-residents, changes in exchange rates can affect the total cost of the property and repayments if using foreign funds.

4. Legal and tax complications

Navigating the legal and tax system can be complex:

• Foreign income tax rules: If you rent out the property, income earned in Australia is subject to Australian taxation, and you may also need to declare it in your home country.
• Capital gains tax (CGT): When selling the property, foreign owners may face additional CGT liabilities.
• Conveyancing complexities: Australia has state-specific property laws and taxes, which can be confusing for international buyers. Hiring a local conveyancer or lawyer is essential.

5. Limited resale opportunities

Foreign buyers often face restrictions when selling property:

• Resale limitations: Some states require foreign owners to sell their property only to Australian residents or after fulfilling certain conditions.
• Market dependency: Resale options may be limited if the property market is slow or the property type (e.g., off-the-plan) is less appealing.

6. Lack of local knowledge

Without a deep understanding of the Australian property market, foreign buyers may overpay for properties due to unfamiliarity with local prices or competition, or purchase in areas with lower capital growth potential.

Tips to avoid these pitfalls

• Seek professional advice: Work with a local real estate agent, mortgage broker, and lawyer familiar with foreign ownership rules.
• Research thoroughly: Understand the regulations and market conditions in your desired location.
• Budget carefully: Account for all taxes, fees, and additional costs before making a purchase.
• Plan for the long term: Consider the property’s potential for capital growth, rental income, and resale restrictions.