Australia will ban foreign investors from buying existing homes in the country for two years, its government said on Sunday, in an effort to boost under-pressure housing supply.

?We?re banning foreign purchases of established dwellings from April 1, 2025, until March 31 2027,? treasurer Jim Chalmers said in a statement with housing minister Clare O?Neil. It added that a review would be undertaken on whether the ban would be extended.

Dissatisfaction with housing in Australia reached an all-time high last year and it is an issue that is expected to dominate a general election due by May.

O?Neil said in comments televised by the Australian Broadcasting Corp that the ban would likely free up around 1,800 properties per year for local buyers.

?These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes,? the ministers? statement said.

Housing is the largest contributor to the rising cost of living in Australia and is set to be a key issue at the upcoming election. A recent poll had the centre-left Labor government lagging its main conservative political opposition.

The government recently passed housing reforms including a shared equity scheme and tax incentives for developers, to ease cost pressures and achieve a target of building 1.2 million new homes by 2030. (Reuters)

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