Foreign Investment Delays: What It Means for WA Real Estate

In the lead-up to the 3 May federal election, the Australian Government has entered its official caretaker period—a time when major decisions are put on hold until after the vote. As part of this, many foreign investment applications, particularly those considered large or complex, are experiencing delays. While routine approvals are still progressing, any proposals requiring higher-level review have effectively been paused, creating uncertainty for developers and offshore investors.

The timing of this delay is particularly challenging for Western Australia. With housing supply already under pressure, international investment plays a crucial role in getting major residential and commercial projects off the ground. Some developers are reporting approval delays of four to eight weeks, which could have flow-on effects on project timelines, funding arrangements, and housing delivery.

Perth has seen growing interest from foreign buyers thanks to its affordability, strong economic fundamentals, and high rental yields. These delays raise concerns about the momentum of that interest, especially in a market where new supply is urgently needed. With vacancy rates at historic lows, the slowdown in approvals could place additional strain on an already stretched rental sector.

Once the election is over and a new government is sworn in, the approval process is expected to resume as normal. But this temporary pause has highlighted the need for more consistency and clarity in how foreign investment is handled during election cycles. For now, Perth remains a compelling market, but ensuring continued access to capital—both local and international—will be essential in meeting the city's growing housing needs.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848