Foreign buyers are rushing to secure property in Australia before a two year ban comes into place in April.

The federal government announced it would ban foreign purchases of established dwellings from 1 April until 31 March 2027. A review will be undertaken to determine whether it should be extended beyond this point.

The announcement followed a similar policy idea put forward by the Liberal Party.

KR Peters Director Peter Nicolls welcomed the ban saying it would make it easier for Australians to buy property.

"Every other country around the world does it. It will be a good thing and flatten out the market. It is not good for price growth, but we need to keep control of prices running away."

He said foreign buyers often had little understanding of market value and had the resources to "pay over" and outbid local buyers.

"That makes it hard for local buyers who are pushed further and further out."

Mr Nicolls said he hopes the government cracks down on those trying to circumvent the ban.

"My fear is that a friend or a family member will buy the property and transfer it at a later date. People always find a loophole to beat the system. "

Housing Minister Clare O'Neil Minister said the Australian Taxation Office’s (ATO) foreign investment compliance team would be bolstered to enforce the ban and enhance screening of foreign investment proposals relating to residential property by providing $5.7 million over 4 years from 2025–26.

"This will ensure that the ban and exemptions are complied with and tough enforcement action is taken for any non‑compliance," she said.

Mr Nicolls said the "rush is definitely on" as foreign buyers scramble to beat the April deadline.

"Foreign buyers are a big force right now. It has happened in the last fortnight. Hopefully this ban helps average Australians realise their dream to own a home."