Peter Dutton wants to ban foreign buyers from purchasing real estate in Australia

Opposition leader Peter Dutton has revealed his plan to help increase the supply of residential properties for Australians amid a national housing shortage. 

The Liberal MP took to social media this week to declare he would ban foreign buyers from purchasing real estate in Australia for two years.   

‘Imagine this: You work hard, stay in while everyone’s going out so that you can save a bit more and you finally have enough to buy your first home, so you put in a good offer only to be outbid by someone who doesn’t even live in this country,’ he said.

‘It’s a situation many first home buyers have right now and that’s why if I’m the next Prime Minister I will work to ban foreign investors and temporary residents from buying existing homes for two years.

‘This will give young people a fair shot at owning their first home. It’s time to prioritise Australians who are working hard to get into the market. 

‘We’ll make sure homes are for those who need them the most, Australians.’

About 1.2million new homes are needed be built in the next five years to meet demand, according to targets agreed on by federal and state governments.

But JLL Research and Housing Australia forecast this target won’t be met with a shortfall of about 197,847 homes by 2027.

Mr Dutton said doing this would make more properties available for Aussies

The video received a flood of comments from many who agreed with Mr Dutton that it would increase supply, but some others argued it would have a tiny effect. 

‘Good one Pete, make it ten years and you’re on a winner,’ one person said.

‘Make it permanently, Australia for Australians,’ another added.

‘Foreign ownership should never have been allowed in the first place’ said a third.

‘We need a tough leader, hope you become next Prime Minister,’ a fourth said.

But others said the small amount of foreigners buying homes was not contributing to the housing shortage. 

‘You try to divide it along nationalist lines by saying ”Australians” but it’s really class lines, the wealthy with their investment properties while young people have none,’ one argued.

‘We just need to build more homes. Increase supply,’ another said.

‘Negative gearing should be capped to one property only,’ a third said, referring to tax breaks which property investors receive.

‘In Queensland the problem is buyers from Sydney and Melbourne offering 20-30 per cent more and buying multiple homes after selling down there. Interstate buying should be restricted,’ a fourth said.

A fifth argued that banning foreign buyers would make auctions less competitive and those selling their houses would suffer. 

Australian Taxation Office figures show foreign buyers made a total of 5,360 purchases worth $4.9 billion in 2022–23, which is up from 4,228 worth $3.9 billion in 2021–22.

Buyers from China, Hong Kong and India were at the top of the pack and the average purchase price was $914,000.

However, foreign buyers only comprise about 1 per cent of all residential property purchases, according to official figures.

Foreign buyers are already subject to more rules than citizens when buying property

Figures also show the nationally-agreed goal of building 1.2 million extra homes by July 2029 looks to be in danger of falling woefully short.

Dwelling approvals dropped by 6.1 per cent in August.

In September, Master Builders Australia forecast just 1.03million of the 1.2million target homes would be built, finding every state was behind their individual targets.

The peak building and construction body said if the pace experienced over the past year continued, Australia would fall 365,000 homes short.

According to Australian Bureau of Statistics data released on Tuesday, approvals for detached houses rose by a slim 0.5 per cent nationally, but other dwellings – including apartments – pulled down the overall tally with a 16.5 per cent fall.

MBA chief executive Denita Wawn said a ‘strong and consistent’ supply of high-density housing was key to solving the housing crisis.

‘With higher density building approvals lower now than a year ago, the data reinforces the need for serious action on inflation to encourage new home ownership and more private investors into the market to generate urgently needed new homes,’ she said.

NSW and South Australia recorded the biggest declines, both reporting an 11.5 per cent fall in approvals.

All states experienced a decrease of at least three per cent, month-on-month.

Sluggish planning systems – which NSW Premier Chris Minns has routinely blamed for lacklustre progress in his state – along with ‘apartment-killer taxes’ were driving the decline, according to the Property Council of Australia.

Only 1200 apartments in blocks with nine or more storeys were approved in August, compared with 2500 in July.

‘We need to increase the number of homes approved and ensure a strong pipeline of apartment supply to drive towards our housing targets at scale,’ the council’s Matthew Kandelaars said.

‘But the reality is it has never been more difficult and costly to get apartments out of the ground.’

Every Australian state is lagging behind nationally-agreed housing targets, new modelling has revealed (pictured, builders in Sydney)

Oxford Economics Australia senior economist Maree Kilroy said the data suggested the worst was over for detached housing approvals, but apartments were another story altogether.

Housing starts were forecast to jump six per cent this financial year, she said.

‘Mortgage rate cuts will aid the release of pent-up housing demand, while traction on the housing policy front will become increasingly obvious … however industry capacity will act to limit the velocity of the recovery,’ Ms Kilroy said.

Detached housing approvals rose in NSW by 3.9 per cent, in WA by 1.9 per cent and in Victoria by 1.4 per cent.

But they fell in South Australia by four per cent and in Queensland by 3.9 per cent.