In order to ease the domestic housing crisis, the Australian government recently issued a “purchase restriction order” to strictly restrict foreign investors from buying houses in Australia.

The Australian Associated Press (AAP) reported on the 16th that according to the new regulations of the Australian government, foreign buyers will not be allowed to buy houses and buildings (stock houses) that have been built in Australia from April 1 this year. The validity period of the “purchase restriction order” will last until March 31, 2027, when the Australian government will decide whether to extend it depending on the situation. In addition to foreign investors and “house speculators”, the new regulations also apply to “temporary residents” – such as international students and short-term residents with work visas, as well as foreign companies. However, AAP said that new houses under construction are not affected by the “purchase restriction”. In addition, the Australian government will also crack down on the “land hoarding” behavior of foreign real estate developers in Australia, requiring existing vacant land to be developed within a reasonable time.

Singapore’s Straits Times reported that the continuous rise in housing prices in recent years has exacerbated Australia’s livelihood crisis. Take Sydney as an example. In the past decade, the city’s housing prices have soared by 70%, with the median house price reaching 1.2 million Australian dollars (about 5.53 million yuan), and rents are also rising. The housing shortage problem in New South Wales is particularly prominent. According to a government report, the state’s affordable housing gap for low-income groups will exceed 220,000 units in 2022. This predicament even threatens the ruling party’s election prospects. Those in power are worried that young people who cannot afford to buy a house will no longer vote for them. The Global Times special correspondent observed that soaring housing prices have become one of the key factors affecting Australia’s social stability. At the same time, the issue of controlling the rapid growth of housing prices is also one of the core topics of this year’s Australian election. However, according to the media, the Labor government’s new policy has an impact of less than 0.4% on the country’s entire property market, and its actual effectiveness has aroused widespread doubts from the media. What’s more ironic is that this new regulation almost “copied” the concept proposed by the opposition last year. At that time, the Labor Party also criticized the opposition leader Dutton for this idea. “Psychological disorder.”

The country’s Housing Minister O’Neill said on the 16th that the new rules are aimed at “ensuring that more young Australians can own homes” and are a “good policy that benefits the public.” But she also admitted that the “purchase restriction order” is not a “panacea” to solve the housing crisis, and the government does not have a perfect solution at all.