Foreign Buyers Are Running Out of Options in Melbourne

If you’ve been searching for a home in Melbourne, especially a completed or near-completed 1–2 bedroom unit, you may have noticed something surprising:

There is almost nothing left that foreigners can buy. And the shortage is getting worse every month.

Foreign Buyer-Eligible Stock Is Disappearing Fast

In the first week of November 2025, we combed through every foreigner-eligible apartment in inner Melbourne. Here’s what we discovered:

• The supply of completed 1–2 bedroom units for foreign buyers has dropped by about 38% year-on-year (2024 → 2025).
• Brand-new, off-plan units or completed apartments with FIRB clearance are extremely limited.
• In popular suburbs like Southbank, Docklands, Clayton, and Burwood, foreigner-eligible completed units under $850,000 are nearly wiped out.
• The vacancy rate across Melbourne tightened to 1.1% as of October 2025, the lowest it's been in 15 years.
• Education demand is surging again, with 2026 university enrollment forecasts rising 9–12% in Melbourne.

The gap between what foreigners WANT and what they CAN actually buy has never been wider.

Why Is Foreign Buyer Supply Collapsing?

Here’s the core issue: Foreigners are not allowed to buy resale properties in Melbourne.

You can only purchase:

• Brand-new, off-the-plan apartments, or
• Completed apartments that have FIRB approval (and these are few and far between).

But most developers sell out their entire project well before completion, sometimes even years in advance. That means the small pool of foreigner-approved completed units is rapidly shrinking, faster than new stock can replace it.

In 2025:

• Only about 10% of all completed new apartments were eligible for foreign buyers.
• Most 2025 completions were snapped up by locals and permanent residents between 2023 and 2024.
• Investors from China, Indonesia, Singapore, Hong Kong, and India are aggressively buying anything under $900k that is already built.

The result?

Foreign buyers wanting a completed, move-in-ready apartment face either buying leftover, less desirable units or finding nothing at all.

Who’s Racing to Grab the Last Units?

Every month, I see the same three groups scrambling:

1. Parents of Students Starting University

They wait until January or February, close to semester starts, and then panic.

“We need a place fast. What's left to buy?”

Usually, only a handful of units remain, and they’re often not in the best buildings or locations.

2. Retirees Tired of Renting

After multiple visits to Melbourne, they decide it’s time to settle. But by then, their preferred buildings have no foreign buyer stock left.

3. High-Net-Worth Investors Seeking Stability

This group grew rapidly in 2025. They buy not for rental yield but for asset stability, a foothold in Australia, and long-term family planning. They don’t haggle or wait, they snap up whatever’s available immediately.

These last-minute buyers clear out remaining stock quickly, often within weeks.

Why This Scarcity Matters to Investors

This shortage isn’t just about lifestyle or convenience; it's a financial advantage.

When supply is this tight:

• Prices of completed units hold strong
• Rental demand stays very high
• Rental yields remain stable
• Vacancy rates remain low
• Resale liquidity improves (rare stock moves quickly)

Here's the 2025 Melbourne rental market data:

So, when a foreigner-eligible completed unit hits the market, it sells fast, not because it’s cheap, but because it’s rare.

Planning Ahead Is More Important Than Ever

If you know your child will study in Australia in the next 2–5 years, or you plan to retire here someday, why wait until the last minute?

Delaying means you risk:

❌ Renting year after year

❌ Settling for less desirable locations or layouts

❌ Paying higher prices with fewer choices

❌ Competing with more buyers, especially from Asia

Waiting doesn’t create more options. It only shrinks them.

You lose control over critical factors like apartment layout and size, floor level, facing direction, building quality, and proximity to hospitals, campuses, and public transport.

You end up settling, not choosing.

The Market You're Seeing is Real

You’ve probably noticed this yourself when you search online:

❌ Shrinking listings for foreign buyer-eligible units❌ Repeated listings from the same projects❌ Few good 1–2 bedroom completed apartments available❌ Slow but steady price increases

This is the new normal. Once a building sells out and fills up, no future foreign buyer stock becomes available there.

The 2025–2030 Forecast: Why The Window to Buy Is Now

Melbourne is projected to remain Australia’s fastest-growing city over the next five years:

✔ Population forecast to hit 6 million by 2030✔ Continued rising demand for education✔ Expanding healthcare and research precincts (Parkville, Clayton, Box Hill)✔ Build-to-rent projects reducing owner-occupier supply✔ Apartment completions expected to drop by 25% due to construction delays and regulation

The result:

• Less supply.
• More demand.
• Higher rent.
• Stronger price growth.
• Intensified competition.

This is not a market for last-minute buyers.

If You’re Serious About Melbourne, Talk to Me Today

With 18 years of experience helping Singaporean families, retirees, and global investors, I can assure you: the foreign buyer stock shortage is very real, and often catches buyers off guard.

Just last week, a Singaporean family came to me searching for a completed 2-bedroom near RMIT, and there was only 1 unit left across the entire CBD that foreigners could purchase.

If you want me to personally shortlist the remaining foreigner-approved units before they disappear, send me a message today.

Remember: what’s available now might be gone next month, and once these units sell, they’re gone for good.

Would you like me to help you secure the best options before it’s too late?

Josh Tay