What Hong Kong-Based Investors Need to Know Before Buying Property in Australia

By Robinsons (AU) Pty Ltd | March 2026 | Estimated reading time: 8 minutes

⚠ DISCLAIMER: This article is for general informational purposes only and does not constitute legal advice. Laws and regulations change frequently and their application varies with individual circumstances. You should always seek independent legal advice specific to your situation before taking any action. Robinsons (AU) Pty Ltd accepts no liability for reliance on the contents of this article.

Australia remains one of the most sought-after destinations for property investment by buyers from Hong Kong and Greater China. According to the Australian Taxation Office (ATO)’s Register of Foreign Ownership of Australian Assets — which tracks residential properties acquired between 2016 and 2024 that remain in offshore hands — more than 40,000 residential properties are held by overseas interests, and mainland Chinese buyers account for approximately 67% of that total (some 23,550 properties). When Hong Kong buyers are included, that share exceeds 27,000 properties.

Yet the legal and tax environment for foreign buyers has never been more complex. Since 2025, a combination of new restrictions, higher fees, and elevated surcharges has significantly increased the cost and compliance burden for non-resident purchasers. This article sets out the key legal and financial considerations every Hong Kong-based investor should understand before entering the Australian property market.

1. Who Is a ‘Foreign Person’ Under Australian Law?

The starting point — and one of the most misunderstood aspects — is understanding who qualifies as a ‘foreign person’ for the purposes of Australia’s foreign investment laws.

Under the Foreign Acquisitions and Takeovers Act 1975 (Cth), a ‘foreign person’ includes:

An individual not ordinarily resident in Australia (generally meaning fewer than 200 days in the preceding 12 months, with no limitations on their visa)
A foreign corporation — including companies incorporated overseas
A discretionary trust where even one potential beneficiary could be a foreign person — a common trap for family trusts used in property investment

Importantly, you are NOT considered a foreign person if you are:

An Australian citizen (regardless of where you live)
An Australian permanent resident
A New Zealand citizen holding a Special Category Visa (Subclass 444)

If you hold dual citizenship (including Australian citizenship), FIRB requirements do not apply to you. This is an important planning consideration for investors on the path to permanent residency.

2. The Established Dwelling Ban — A Critical 2025 Development

One of the most significant changes to affect Hong Kong investors is the Australian Government’s temporary ban on foreign persons purchasing established (existing) dwellings. This ban is in effect from 1 April 2025 to 31 March 2027.

KEY POLICY: Foreign Person Established Dwelling Ban

Effective: 1 April 2025 to 31 March 2027

Applies to: Most foreign persons who are not Australian citizens, permanent residents, or NZ citizens

Impact: Foreign buyers may only purchase NEW dwellings, vacant land, or off-the-plan properties

Source: Australian Government, Department of Home Affairs

This means Hong Kong buyers are now largely restricted to purchasing newly built properties, vacant residential land, or off-the-plan apartments. Established homes — the traditional terrace houses and existing apartments that many investors have favoured — are off-limits for the duration of the ban, with very limited exceptions.

The ban has a direct practical effect: buyers must focus their searches on new developments, house-and-land packages, and off-the-plan projects. This is not necessarily a disadvantage — new properties often carry stamp duty concessions and are exempt from the foreign purchaser surcharge on the construction component (see below).

3. FIRB Approval: Mandatory Before You Sign Anything

For foreign persons acquiring residential property in Australia, Foreign Investment Review Board (FIRB) approval is mandatory before you enter into any contract to purchase. This is non-negotiable — purchasing without approval can result in forced divestiture, civil penalties, and criminal prosecution.

FIRB application fees are non-refundable, even if your purchase falls through. The fees are indexed annually and have increased substantially in recent years. The 2025–26 schedule (effective 1 July 2025) for new dwellings and vacant land is as follows:

Property Value (A$)	FIRB Application Fee (2025–26)	Vacancy Fee if Property Left Empty*
Under $1 million	A$14,700	A$29,400
$1 million – $1,999,999	A$28,200	A$56,400
$2 million – $2,999,999	A$56,400	A$112,800
$3 million – $4,999,999	A$112,800	A$225,600
$5 million – $6,999,999	A$168,900	A$337,800

* Vacancy fees apply if the property is not genuinely occupied or rented out for at least 183 days per year. From 9 April 2024, the vacancy fee is double the original application fee. Source: ATO / foreigninvestment.gov.au, 2025–26 schedule.

For established dwellings (where exceptions apply), FIRB fees tripled from April 2024 and now start at A$42,300 for properties under A$1 million.

A key practical point: FIRB’s statutory decision period is 30 days, but this only starts once the correct fee has been paid and a complete application lodged. In practice, processing can take longer, particularly for complex transactions or sensitive assets. Build FIRB timing into your contract’s sunset date.

4. Foreign Purchaser Stamp Duty Surcharge — State by State

On top of standard stamp duty (transfer duty) that all buyers pay, foreign persons are subject to an additional surcharge in most Australian states. This surcharge can be substantial and varies by state.

State	Foreign Buyer Surcharge (2025)	Annual Land Tax Surcharge
New South Wales (NSW)	9% (increased from 8% in Jan 2025)	5% per annum
Victoria (VIC)	8%	4% per annum (absentee owner)
Queensland (QLD)	8%	Applicable
South Australia (SA)	7%	Applicable
Western Australia (WA)	7%	Applicable
Tasmania (TAS)	8%	Applicable
ACT	Nil upfront surcharge	0.75% per annum
Northern Territory (NT)	Nil	Nil

Source: Various State Revenue Offices, 2025 rates. Rates are subject to change — always verify with the relevant State Revenue Office before signing. NSW now has Australia’s highest foreign purchaser surcharge at 9%.

5. Worked Example: Total Upfront Cost for a Sydney Purchase

To illustrate the true cost of a purchase, consider a Hong Kong investor buying a newly completed apartment in Sydney for A$1,500,000:

Cost Item	Amount (Approx.)	Notes
Purchase price	A$1,500,000
Standard stamp duty (NSW)	A$66,390	Applies to all buyers
Foreign Purchaser Surcharge (9%)	A$135,000	NSW 2025 rate on full value
FIRB application fee	A$28,200	New dwelling, 2025–26 rate
Legal fees (conveyancing)	A$2,000–4,000	Estimated range
Total upfront (excl. mortgage)	≈ A$1,231,590–1,233,590
Effective surcharge on purchase price	≈ 15.5%–15.6%	Above standard buyer costs

Note: This is an illustration only. Individual circumstances differ. Stamp duty is calculated on the higher of the contract price or the market value. Legal fees vary. Source: NSW Revenue, ATO, MinterEllison FIRB Commentary 2025.

A key planning opportunity: for house-and-land packages where the land and construction are contracted separately, the 9% foreign buyer surcharge applies only to the land component — not the construction cost. This can represent a significant saving on a project home.

6. The ‘Ordinarily Resident’ Exemption — Important for Migrants in Transition

Many Hong Kong investors in Australia are in transition — they may be on temporary visas, have recently arrived, or are working towards permanent residency. This creates important nuances:

If you have been ordinarily resident in Australia for 200 or more days in the preceding 12-month period AND hold a visa with no time limitations, you may not be classified as a foreign person — meaning FIRB approval and the surcharge may not apply.
If you hold a temporary visa (including a 482 TSS visa or 485 Graduate visa), you are still likely to be a foreign person unless you meet the 200-day residency test.
If you are buying jointly with an Australian citizen or permanent resident spouse, the foreign buyer surcharge typically applies only to your proportionate share of the property.

Timing your property purchase relative to your residency pathway can therefore result in material cost savings. Taking immigration advice and property law advice together — which our team is uniquely positioned to provide — is strongly recommended.

7. Key Legal Steps: The Conveyancing Process in NSW

Engage a NSW-admitted solicitor or conveyancer before you begin searching
Lodge FIRB application and pay fee — do not sign any contract before approval
Receive FIRB approval (allow 30+ days; build into contract sunset clause)
Exchange of contracts — buyer pays 10% deposit; ‘cooling off’ period of 5 business days in NSW (can be waived)
Satisfy conditions (finance, building inspection, etc.)
Settlement — balance of purchase price paid; transfer duty (stamp duty) must be paid within 3 months of signing or at settlement, whichever is earlier
Register foreign ownership on the ATO Register of Foreign Ownership within 30 days of settlement
Lodge annual vacancy fee return if property is not occupied or rented for 183+ days per year

8. Common Pitfalls for Hong Kong Buyers

Signing a contract before FIRB approval is obtained — this can invalidate the contract and expose you to penalties
Using a discretionary family trust to hold the property without checking if any beneficiary is a foreign person — this can trigger FIRB requirements and the surcharge unexpectedly
Failing to account for the annual land tax surcharge — this is an ongoing cost that affects investment yield calculations
Not registering the foreign ownership with the ATO after settlement — this is a legal obligation and carries penalties for non-compliance
Purchasing an established dwelling without a valid exemption during the 2025–2027 ban period

9. How Robinsons (AU) Pty Ltd Can Help

Our team is uniquely positioned to guide Hong Kong investors through the Australian property purchasing process. Mr Alun Pang, our principal solicitor, has direct in-house experience in Hong Kong property development and brings deep practical knowledge of how both Australian and Hong Kong legal systems approach real estate transactions. We advise in English, Cantonese and Mandarin.

We can assist with FIRB applications, NSW conveyancing, trust structure review, and coordinating your property purchase with your migration pathway to maximise tax and regulatory efficiency.

Sources & References:

• ATO Register of Foreign Ownership of Australian Assets (January 2026)

• FIRB 2025–26 Schedule of Fees — foreigninvestment.gov.au (July 2025)

• MinterEllison: FIRB 2024 Recap and 2025 Outlook

• NSW Revenue Office: Surcharge Purchaser Duty

• Foreign Acquisitions and Takeovers Act 1975 (Cth)

• Australian Broker News / Mortgage Professional Australia (January 2026)