The government has decided to increase the financial burden on foreign investors to curb their investment surge in the Australian property market. The new proposal will triple application fees and mandate that overseas investors who purchase properties and choose to leave them vacant must pay a vacancy fee twice the increased application fee. This aims to better restrict excessive foreign investment in the Australian real estate market.

For foreign individuals investing in new properties, the government is providing certain incentives. The application fees for foreign investors purchasing newly constructed properties will not increase. Additionally, the government will implement policies to reduce the investment costs for constructing rental projects, maintaining these costs at the minimum level of commercial activities to stimulate the development and investment in new properties.

Ministers Jim Chalmers and Julie Collins, responsible for Finance and Housing respectively, stated when announcing these policy changes: "These adjustments will further encourage foreign citizens to purchase newly built properties and ensure approved transactions comply with regulations. The higher application and vacancy fees for existing residences are designed to incentivize investment in new property development, thereby increasing residential space, creating employment opportunities in the construction industry, and promoting economic growth."

While the new regulations may impact the purchasing costs for foreign investors buying existing properties, the direct impact on housing supply and rental prices is expected to remain limited. Foreign investors today face numerous restrictions when purchasing existing Australian properties, and for those foreign individuals who have already bought homes, selling the property is mandatory once they are no longer permanent residents of Australia and leave the country.

The implementation of these policies aims to alleviate the housing crisis, ensure the purchasing ability of local residents, and maintain the health and stability of the property market. These measures are expected to have a positive impact on the future development of Australia's real estate market and play a role in addressing the current challenges.

However, these policies still require more comprehensive and effective regulatory measures to ensure their genuine effectiveness. Additionally, the government should continue to strengthen regulatory oversight of the real estate market to prevent unscrupulous individuals from circumventing these policies through various means, thereby safeguarding the housing rights of local residents.