I’m often asked this in Korea:
“Sydney prices keep rising — should I just buy one?”
Most people are surprised at the first hurdle: “You can’t buy an existing home.” Surprised again at the second: “As a foreigner, you pay an extra 9% on duty.” And again at the third: “You also pay extra land tax every year (on the land value).”
The natural reaction is: “Does Australia just dislike foreigners buying property?”
It’s a little different. Australia isn’t a country that blocks foreign capital — it’s a country that designs the direction that capital flows. Once you understand this principle, FIRB, the foreign surcharges, the established-home ban, and even the recent Build-to-Rent (BTR) tax break all connect into one picture.
The bottom line
- Australia has long steered foreign capital away from existing homes and toward new supply.
- Foreign individuals (non-residents and temporary-visa holders) can generally only buy new builds, off-the-plan dwellings, and development land, and need FIRB approval.
- In NSW, on top of ordinary duty: a 9% foreign surcharge purchaser duty and a 5%/year surcharge land tax (on land value).
- From April 2025 to March 2027, foreign purchases of established homes are temporarily restricted further.
- The recent “foreign tax abolished” story applies only to Build-to-Rent and retirement-living developments — nothing changed for individual investors.
Money isn’t blocked. Its direction is redirected.
That’s the core of Australian property policy. Think it through.
If a foreigner buys one existing home in Sydney, not a single home is added, supply doesn’t grow, and the price of existing stock may simply rise.
But if a foreigner buys a new apartment? The developer secures pre-sale funds, project financing becomes possible, construction starts, building jobs are created, and ultimately new housing reaches the market.
So from the government’s view, even with the same foreign capital, money that builds new homes is far more valuable than money that bids up existing prices. Australia isn’t blocking foreigners — it’s designing the direction their capital enters.
So what can a foreign individual actually buy?
The principle is surprisingly simple. A non-resident foreigner can buy new dwellings, off-the-plan new builds, and development land with FIRB approval. Established dwellings, in principle, cannot be bought.
And from April 2025 to March 2027, this is tightened further: even temporary-visa holders are largely barred from buying established homes. Exceptions are narrow — buying as joint tenants with a citizen/PR spouse, or redevelopment that adds new dwellings (genuinely increasing supply).
The number to calculate before the price
Korean investors usually look at the price first. In reality you should calculate the tax first. Suppose you buy an A$1.2 million new apartment in NSW. Beyond the price, these costs follow:
- Ordinary stamp duty
- FIRB application fee
- 9% foreign surcharge purchaser duty
- Legal fees · FX costs · remittance costs from Korea
The foreign surcharge duty alone comes to A$108,000. On top of that you pay the annual surcharge land tax (5% on land value) every year you hold it.
In other words, what many Korean investors picture as “let me just buy one” is in fact “an investment that starts more than A$100,000 in the hole.”
Then why the “NSW abolished the foreign tax” headlines?
Recent coverage said “NSW scrapped the foreign investor tax.” But for individual investors, almost nothing changed. What was removed was the surcharge applying to Build-to-Rent (BTR) and retirement-living developments.
Why? To institutional investors, the government says: “Please supply lots of rental housing.” To foreign individuals, it says: “Stay out of the existing-home market.” Both are “foreigners” on the surface — but the role the government wants the money to play is completely different.
For Korean investors, the most important thing is status
For the same apartment, the math changes entirely depending on who buys it. Australian citizens and permanent residents are treated like ordinary buyers. A non-resident foreigner must weigh FIRB approval, the surcharge duty, the surcharge land tax, and the established-home restriction.
So in Australian property, you check “what is my status” before you ever look at the home.
And Korean investors have one more thing to calculate
Buying an Australian home isn’t simply buying Australian property. The moment you move money from Korea, more enters the calculation:
- When do you convert FX?
- How will you remit from Korea?
- How will you evidence the source of funds?
- Is there any Korean tax?
- When do you become an Australian tax resident?
In the end, investing in Australian property isn’t buying a home — it’s designing money that crosses a border.
Read next
- Sending money from Korea to Australia — the efficient way, and the limits
- Should you remit when the Australian dollar is strong? — manage exposure, don’t predict · AUD-KRW, the real rate
- Am I an Australian tax resident? — when residency actually starts
- Selling a Seoul apartment to move to Australia · The Korea–Australia money map
Disclaimer: General information on the basis in effect at the time of writing. Foreign-buyer rules and taxes vary by status (citizen, PR, temporary visa, non-resident), by state, and by the nature of the property. Confirm with FIRB, Revenue NSW, and a tax professional before transacting. Not investment advice.