AUSTRALIA: Government allows sale of off-the-plan dwellings failing to reach settlement

Monday November 28 2016

The Turnbull Government will implement changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.

This action will ensure that markets will not be impacted negatively by an increased amount of off-the-plan sales, particularly from foreign purchasers, not being completed.

In the event of a failure to complete settlement, the dwelling should revert to its previous status – that is, a new dwelling.

For individual applications made by potential purchasers this policy change will be implemented immediately. Foreign persons who apply to purchase a dwelling that is considered established, only due to a failed settlement, will be assessed as if it was a new dwelling.

The Government’s strong foreign investment framework allows foreign persons to purchase new Australian dwellings as it encourages developers to build more houses and apartments, thereby increasing supply.

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