Foreign Investment in the Australian Real Estate Market
Developers are able to apply for approval to sell “new dwellings” to foreign persons. Previously developers could only obtain approval to sell 50 per cent of new dwellings “off the plan” to foreign persons. The 50 per cent threshold has been abolished providing that developers market the dwellings in Australia as well as overseas. This means there is no restriction on the percentage that can be sold to foreign persons. Furthermore, the definition of “new dwellings” has been widened to incorporated dwellings not sold by the developer but which may have been occupied for no more than 12 months. Pre-approvals may be given to a developer to sell to foreign persons, therefore relieving the foreign person from personally applying for approval.