Where are Australian Expats Buying Property? A Global and Domestic Guide for 2026

For Australians living and working abroad—the expats—buying property is a crucial financial and emotional decision. While many choose to invest back home, the tightening of regulations has made overseas markets increasingly attractive, offering unique opportunities for yield, lifestyle, and a path to secondary residency.

Here is an analysis of where Australian expats are purchasing property, both domestically and internationally, in 2025.

The Domestic Attraction (Buying Back Home)

For Australian citizens and permanent residents living overseas, investing in the home market remains highly popular. They are primarily driven by the desire to secure a future home, take advantage of strong rental demand, and eliminate Foreign Investment Review Board (FIRB) approval hassles.

The Investment Hotspots

Expats buying in Australia typically focus on areas with stable tenant demand and high potential for capital growth:

1. Major East Coast Cities: Despite high prices, Sydney and Melbourne remain staples due to their liquidity and status as global financial hubs. Expats focus on:
   • Blue-Chip Suburbs: Prime houses in suburbs with excellent schools and amenities (e.g., Sydney’s Lower North Shore, Melbourne’s Bayside).
   • Inner-City Units: Apartments near the CBDs or universities, which offer stronger rental yields than houses in the same market.

1. Growth Capitals: Brisbane and Perth are major attractions. Brisbane, in particular, benefits from infrastructure spending ahead of the 2032 Olympics, driving expat investment into new housing and development precincts. Perth is highly favored for its current affordability advantage and robust rental market.

Key Consideration: Tax Residency is Paramount

The single most important factor for an Australian expat buying back home is their Australian tax residency status.

• Tax Resident: You are taxed on your worldwide income, but may be eligible for deductions and potentially the Capital Gains Tax (CGT) Main Residence Exemption (under specific conditions).

• Non-Tax Resident: You are only taxed on Australian-sourced income (rent, capital gains). However, you face higher land tax and stamp duty surcharges in many states, you cannot claim the 50% CGT discount, and you are no longer eligible for the main residence exemption when selling a former home (unless acquired before May 2017 or in specific “life event” circumstances).

The Global Frontier (Buying Overseas)

Australians are increasingly looking abroad for investment, retirement, and lifestyle properties. This movement is driven by currency exchange rates, the search for higher rental yields, and attractive residency/citizenship-by-investment programs.

Popular countries for Australian expat property purchasing tend to fall into three categories:

1. The Traditional Anglosphere Investment Hubs

These markets are familiar, have strong rule of law, and offer stability for long-term investors.

• United Kingdom (UK): London remains a classic investment for Australians based in Europe due to its strong rental market and cultural familiarity. Investors may target a weaker Great British Pound (GBP) against the AUD for entry-price advantages.
• United States (US): Buying a property in major US cities (often as a second home or pure investment) is common, particularly for expats working in New York or California.
• New Zealand (NZ): The most straightforward market due to close ties, language, and simple foreign ownership laws for Australian citizens.

2. The Asia-Pacific Lifestyle and Investment Belt

For the large Australian expat population working in Asia, investing regionally offers convenience, lower entry prices, and high capital growth potential.

• Singapore: While the city-state is generally expensive, many Australians working there invest locally for prestige or in surrounding Asia-Pacific hubs.
• Malaysia: Highly popular due to its foreigner-friendly policies and programs like the “Malaysia My Second Home” (MM2H) visa, offering long-term residency and straightforward property purchase.
• Japan: Becoming increasingly popular, especially for ski/holiday homes (e.g., Niseko) or for investment in stable city markets like Tokyo and Osaka, which offer relatively low interest rates.

3. Residency and Retirement Destinations (The Golden Visa Markets)

A growing segment of buyers is motivated by obtaining a secondary residency visa, which offers freedom of movement and a potential alternative citizenship.

Securing home loan while abroad guide. Click here