{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationForeign capital exodus deepens housing deficit
Foreign capital exodus deepens housing deficit
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
Australia will not meet its housing targets while continuing to tax the capital needed to build new homes, the Housing Industry Association (HIA) warns in its latest Stamp Duty Watch report released today.
“Foreign institutional capital does not create housing demand. It creates supply,” Mr Reardon said.
“Taxing this capital reduces the supply of homes being built, even as migration continues to surge and create demand. This is the worst own goal in the myriads of housing policy mistakes.
The report also finds that the average stamp duty bill on a median-priced home has now reached $31,210 nationally, a record high and a 55 per cent increase since 2019. In Queensland, the burden has nearly tripled. These upfront costs are forcing Australians to take on greater levels of debt, reduce the quality of housing they can afford, or delay entering the market altogether.
State governments have introduced punitive stamp duty and land tax surcharges on foreign capital over the last decade, with rates now as high as 9 per cent in New South Wales and 8 per cent in Victoria. Foreign institutional investors in those states now face up to $160,000 in stamp duty, land tax and foreign investment fees on a typical new dwelling, up to four-and-a-half times the amount paid by local investors.
“These imposts are likely to be revenue negative. Foreign capital is highly liquid and has moved to other economies that are open to foreign capital building apartments to meet the needs of a growing population.
The report stresses the need to distinguish between foreign investors, who fund new housing, and temporary residents, such as international students, who consume it. Misunderstanding this distinction has led to contradictory policies that stimulate housing demand while simultaneously penalising those who finance housing supply.
“The combination of surging migration and stagnant home building, constrained by poor policy design, has left Australia in a housing deficit,” Mr Reardon said.
“Reversing the foreign capital exodus is not only a rational economic choice, but also essential to delivering the homes Australians need.”
The Winter 2025 report calls for a reset of national housing policy, including:
- Abolishing stamp duty surcharges and land tax surcharges on foreign investors
- Aligning migration, housing supply and planning policy
- Adopting tax-neutral investment rules to encourage institutional participation
- Reviewing the effectiveness of investor surcharges annually
- Providing long-term certainty to restore investor confidence
“Stamp duty continues to block mobility and lock buyers out of the housing market,” Mr Reardon added.
For more information please contact:
NT housing market continues to outperform as confidence drives growth
The Northern Territory's housing market continues to outperform many parts of the country, with strong dwelling price growth, rising building approvals and sustained investment activity demonstrating confidence in the Territory's future.
EIE – Standard and model conditions of consent
HIA commented on the Explanation of Intended Effect for Standard and model conditions of consent (the EIE). It is understood the EIE explains the proposed amendments to State Environmental Planning Policy 2021 that will give effect to consistent conditions of consent for residential development across the state.
Tasmanian home approvals lift, but still short of what’s needed
Home building approvals in Tasmania have climbed over the past year, though the numbers remain well below the level needed to meet demand.
Solid apartment approvals fail to reverse housing slowdown in ACT
The latest building approvals data shows the ACT residential building market remains subdued, with detached housing continuing to struggle and the momentum that emerged in the apartment market during 2025 now showing signs of fading.