Victoria continues to draw the most foreign property investment in Australia, even amid rising government fees, new surcharges, and tightening tax measures designed to cool the market.
Key Takeaways
- Foreign property purchases in Victoria jumped over 50% in two years.
- Overseas buyers spent $2.25 billion on Victorian property last year.
- China remains the top source of foreign buyers, followed by Japan, Singapore, and Hong Kong.
- Despite growth, foreign investors still account for only 1% of total housing transactions nationwide.
- Government policies to deter foreign investment appear largely ineffective so far.
Victoria Leads the Nation in Overseas Property Purchases
According to the Tax Office’s Register of Foreign Ownership, Victoria recorded 2,606 foreign-bought properties worth $2.25 billion in 2023–24 — the highest across all Australian states.
That figure represents a 50% increase over two years, defying state and federal efforts to curb foreign ownership through increased taxes and fees.
Most of these purchases were new homes or undeveloped land, often at the lower end of the price spectrum.
A Surprising Surge Despite Policy Headwinds
The findings come amid growing concerns over housing affordability, cost of living, and crime rates in Victoria — factors that might have been expected to deter investors.
However, the data suggests that foreign buyer demand remains resilient, especially from Chinese investors, who continue to dominate the market.
“Foreign buyers now account for only about 1 per cent of total housing transactions,”
said University of Adelaide senior housing researcher Sha Liu.
“That’s a huge drop from nearly 5 per cent at the 2015–16 peak.”
Liu added that foreign buyers are not pricing out local first-home buyers, as their share of overall housing transactions remains low.
Where the Investment Is Happening
Foreign investor activity continues to be concentrated in New South Wales and Victoria, particularly in Sydney and Melbourne, where international demand for property remains strongest.
Below is a summary of foreign residential purchases across Australia:
Number of Foreign-Bought Residential Properties
| State | 2021–22 | 2022–23 | 2023–24 |
|---|---|---|---|
| ACT | 206 | 369 | 401 |
| NSW | 664 | 656 | 985 |
| NT | 42 | 55 | 37 |
| QLD | 956 | 1,121 | 1,099 |
| SA | 327 | 459 | 628 |
| TAS | 110 | 138 | 103 |
| VIC | 1,703 | 2,240 | 2,606 |
| WA | 220 | 322 | 406 |
Victoria’s dominance underscores its continued reputation as an investment safe haven, even as new land taxes, stamp duty surcharges, and foreign ownership fees have been introduced in recent years.
Looking Ahead
While foreign ownership in Australian real estate remains well below its historical highs, Victoria’s sustained growth highlights that demand from overseas buyers is rebounding — particularly for affordable new builds and undeveloped land.
However, with continued affordability challenges for locals and government policy under review, the long-term future of foreign investment in the Victorian housing market remains uncertain.
