Demand for Australia’s trophy homes —those valued at $10 million and above — continues to far outnumber supply, with listings notably scarce across the country’s most iconic enclaves, and understandably so.
For many overseas investors, Australia represents a reliable “safe haven,” offering political stability, transparent governance, and a resilient economy that few global markets can match. However, successfully navigating the country’s luxury real estate market demands strategic insight, legal awareness, and expert guidance to secure the right property and ensure a seamless transaction from start to finish.
Learn how to navigate entry into this exclusive real estate arena so you can proceed with clarity and reassurance with our team at Melcorp Luxe in this guide.
Can Foreigners Buy Luxury Property in Australia?
Yes, but under specific conditions.
Most foreign individuals, including non-residents and temporary visa holders, must apply for and receive approval from the Foreign Investment Review Board (FIRB) before purchasing residential property in Australia.
The FIRB evaluates foreign investment proposals based on national interest, while the Treasurer has the final decision-making power in each case.
What property can foreigners buy?
- New dwellings and off-the-plan properties: Generally approved and subject to FIRB clearance.
- Vacant land for development: Permitted, but subject to conditions such as completing construction within a specified timeframe.
Two-year ban: 2025 – 2027
Starting April 1, 2025, through March 31, 2027, foreign buyers, including temporary residents, are banned from purchasing established dwellings, even for personal use. This is part of the government’s initiative to ease housing pressures by making more properties available to local buyers.
Can you buy property in Australia and get residency?
No. Purchasing property in Australia, even luxury real estate, does not automatically confer residency or citizenship.
Australia does not offer a “Golden Visa” program. There is no direct residency or citizenship pathway tied to property investment alone.
Understanding FIRB Rules and Approval Process
Here’s a succinct, authoritative guide to ensure compliance and smooth execution.
1. Mandatory approval and application process
Any foreign person must obtain FIRB approval or an exemption certificate before completing a purchase of residential property in Australia. You must submit your application via the ATO’s Online Services for Foreign Investors and pay the full application fee to trigger the formal 30-day review period.
2. FIRB application fees for luxury real estate
Fees scale with purchase price and can become significant in the luxury segment:
- Up to AUD 5 million → AUD 112,800
- Up to AUD 10 million → Can extend to ~ AUD 105,200, per tax advisory data
- Above AUD 18 million → Fees can climb to AUD 1.5 million+
Be sure to factor these into your total costs.
3. Timeline
The statutory review window is 30 days from payment receipt, with an additional 10 days allowed for notification of the decision.
Low-risk applications may be approved in as little as 2 weeks. Complex or high-value proposals may require additional time, especially if they involve national security assessments, upstream investor analysis, or are pending during election ‘caretaker’ periods.
4. Including a “Subject to FIRB approval” clause
To safeguard your interests, ensure your purchase contract includes a conditional clause stipulating that the sale is subject to FIRB approval within a clearly defined timeframe. This preserves your ability to cancel if approval is denied and protects your deposit.
Financing a Luxury Real Estate Property from Overseas
Securing finance as an overseas buyer is possible, but expectations and requirements differ substantially from those for local borrowers.
- Lenders: Many Australian lenders apply lower loan-to-value ratios (LVRs) to non-residents. These are commonly in the 60–70% range (i.e., a 30–40% deposit), though exact limits depend on the lender, the borrower’s residency status, documentation, and the property value.
- Banks: Banks impose stricter documentation and country-of-residence screening, so many high-net-worth overseas buyers work with specialist mortgage brokers who have established panels for non-resident lending and can negotiate more flexible terms or alternative lenders.
- FX specialists: On the payments side, buyers often work with FX specialists (and tools such as forward contracts) to lock an exchange rate for a future settlement date or stage transfers to reduce volatility risk.
- Private financing options: Many ultra-high-net-worth buyers also leverage private banking facilities, offshore lending relationships, or bespoke corporate structures to optimise their acquisitions.
Buying Options for Overseas Luxury Investors
Overseas buyers looking to enter Australia’s luxury real estate market have several investment pathways:
1. Off-the-plan developments
Foreign investors are generally permitted to purchase off-the-plan properties, new dwellings that have not yet been occupied.
This route is often smoother to navigate under FIRB rules and offers added perks like potential capital appreciation, favourable stamp duty terms, design customisation, and new-construction warranties. However, risks such as construction delays, valuation mismatches at settlement, and developer reliability remain.
2. Fractional ownership for ultra-premium assets
Fractional ownership allows multiple parties to share equity and operational costs in a high-value property that might otherwise be inaccessible. It’s commonly used for luxury residences like retreats or penthouses, offering personal access, fractional maintenance, and potentially rental income managed by a third party.
This arrangement enables investors to participate in exclusive real estate segments without full ownership.
3. Commercial properties as alternatives
Commercial real estate, including office buildings, lucrative retail spaces, or boutique hotels, is a considerable alternative for foreign investors.
FIRB approval isn’t always required for developed commercial properties below AUD 330 million, especially for investors from FTA partner countries. Such properties offer income-generating opportunities and diversification from residential real estate.
4. Trophy homes
Trophy homes are frequently sold through private treaty arrangements or via exclusive networks that never reach public listings. Access to these opportunities often depends on trusted relationships with established luxury agents who can facilitate discreet introductions.
Step-by-Step Guide to Buying Luxury Real Estate in Australia
Step #1: Confirm liquidity & transaction readiness
Ensure that your dedicated financial team has structured the funds, tax strategy, and any cross-border transfers so you can execute swiftly. In the ultra-luxury market, sellers often favour buyers who can demonstrate immediate capacity to settle without conditions.
Step #2: Apply for FIRB approval before the contract
Submit your FIRB application via the ATO’s online portal, including required fees and documentation. Approval is mandatory before buying and typically takes around 30 days. However, be mindful of exclusions, such as the 2025–2027 ban on established home purchases.
Step #3: Conduct due diligence and inspections
Work with a local property lawyer or conveyancer to perform title searches and ensure compliance with state disclosure laws.
Australian conveyancing is managed under the Torrens system, which ensures title security and requires a licensed local solicitor or conveyancer. Cooling-off periods vary by state.
Also, arrange building inspections or virtual tours to verify quality and avoid surprises.
Step #4: Exchange contracts and settle the purchase
Once satisfied, submit an offer, typically with a 10% deposit for off-the-plan or new luxury properties. Final settlement terms differ by property type:
- Off-the-plan: Settlement occurs upon completion (often 6–24 months later).
- Completed homes: Quick settlement (usually 4–8 weeks), contingent on FIRB approval and finances.
Step #5: Plan for property management or relocation
If you’re not residing in Australia immediately, hire a trustworthy property manager for leasing, tenant screening, and maintenance. If relocation is planned, coordinate insurance, utilities, and local services in advance for a smooth arrival.
Partner with Melcorp Luxe for a Seamless Luxury Buying Experience
Buying luxury real estate in Australia as an overseas buyer demands precision, compliance, and local expertise. Partnering with an experienced luxury real estate company like Melcorp Luxe ensures you have trusted professionals guiding you through every step, from securing FIRB approval to identifying high-performing prestige properties.
With our deep market insight, exclusive listings, and tailored concierge service, we make your buying journey effortless and rewarding. Discover your perfect Australian luxury property with Melcorp Luxe today.
Explore our listings now!
