Chinese Investors Lead Australia’s Foreign : Chinese buyers continue to hold the largest share of foreign-owned residential property in Australia, according to newly released data from the Australian Taxation Office, highlighting how overseas demand has shaped parts of the housing market over the past decade.
Figures from the ATO’s Register of Foreign Ownership of Australian Assets show that buyers from mainland China account for 67% of all foreign-owned homes across the country. That equates to 23,550 residential properties out of more than 40,000 dwellings currently listed on the register.
When purchases linked to Hong Kong are included, the number rises to more than 27,000 properties, underscoring the scale of Chinese investment in Australian housing, as previously reported by The Herald Sun.
The register tracks residential properties bought by foreign investors between 2016 and 2024 that remain under offshore ownership. Most of these purchases were approved through the Foreign Investment Review Board (FIRB) and span buyers from 135 different countries.
Chinese Investors Lead Australia’s Foreign : Tighter foreign buyer rules frame the data
The release of the data comes as Australia moves through one of its toughest periods for foreign investment in housing in years.
From April 1, 2025 to March 31, 2027, most foreign buyers face a temporary nationwide ban on purchasing established homes. On top of that, non-resident buyers are typically hit with state-based surcharges, often adding 7% to 9% to the purchase price.
Combined with FIRB fees and other costs, these measures mean foreign buyers can end up paying between 15% and 25% more upfront than local purchasers.
Despite these barriers, the ATO figures show offshore ownership remains heavily concentrated in certain states and property types.
Victoria tops the list as buyers target cheaper new homes
Victoria leads the nation for foreign-owned residential property, with 16,929 addresses listed on the register. That represents more than 40% of all foreign-owned homes across Australia.
New South Wales follows with 8,862 properties, ahead of Queensland on 8,129. South Australia trails with 2,129 foreign-owned dwellings.
The data also reveals a clear preference for newly built housing. Of the properties on the register, 23,147 are new builds. By comparison, 8,463 are established homes purchased between July 1, 2016 and June 30, 2024.
Price points matter too. Offshore buyers have largely focused on lower-value properties, with 31,888 purchases priced under $1 million at the time of sale. Just 8,289 homes were bought for $1 million or more.
Education and migration links drive Chinese interest
Prop Track senior economist Eleanor Creagh said the strong presence of Chinese buyers reflects Australia’s long-standing links with China across education, business, and migration.
She said skilled migration programs in particular help explain the connection between overseas investment and housing demand within the Asia-Pacific region.
“There’s also skilled migration programs that are probably creating a link between investment and housing demand for the APAC region members,” Creagh said.
Even with tighter foreign investment rules now in place, Creagh expects demand to remain resilient, supported by increased supply of new housing and a weaker Australian dollar.
She also pointed to Australia’s reputation as a stable destination for capital.
“And Australia is also viewed as a safe haven, in some respects,” she said. “It’s a country that’s got transparent legal systems, and strong property rights, and has a perception of being far removed from geopolitical adversities.”
Perceptions don’t always match reality
Industry figures say the register also challenges common assumptions about the scale of foreign buying in Australia.
Peter Li, general manager of Plus Agency, said public concern often overestimates the role of overseas buyers in the broader housing market.
“Most people believe there are more foreign buyers than there actually are,” Li said. “In reality, foreign buyers only make up eight tenths of a per cent of home purchases.”
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However, he acknowledged that rising holding costs, including surcharges and ongoing fees, are changing investor behavior
Some foreign owners are choosing to sell, while others are adjusting their strategies to reduce upfront costs.
Shift towards house-and-land packages
Li said one notable trend is a move away from apartments towards house-and-land packages, which can help minimize surcharges.
Under this structure, foreign buyers pay FIRB fees and stamp duty surcharges only on the land component, not the construction cost.
“They only pay FIRB fees and a stamp duty surcharge on the $350k portion,” Li said. “They don’t pay any surcharge on the construction.”
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This approach has become more attractive as governments lean harder on taxes and restrictions aimed at cooling foreign demand for existing housing stock.
Future demand tied to students and migrants
Looking ahead, industry experts say foreign interest in Australian housing is increasingly linked to long-term plans rather than short-term speculation.
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Juwai IQI founder Daniel Ho said many offshore buyers are now purchasing homes they or their children intend to live in under student or migration visas.
He also pointed to Australia’s ongoing housing shortage as a key factor shaping decisions.
“We expect home prices to continue to climb to 2030 because of the housing shortage,” Ho said. “So, for anyone moving to Australia for the long-term, it makes sense to buy rather than rent.”
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While policy settings have tightened significantly, the ATO data makes one thing clear: Chinese buyers remain the dominant force in Australia’s foreign-owned housing market, and their influence continues to be felt across states, price points, and property types.