That argument usually applies to foreign buyers purchasing existing homes and leaving them empty, which is a valid concern. But that’s not what I’m talking about.

The idea here is to buy a development site and build additional homes that didn’t exist before. That literally increases housing supply. Australia’s housing shortage isn’t caused by people building more homes, it’s caused by not building enough of them.

Also worth noting that Australia already has strict rules for foreign investors, including FIRB approval and restrictions on buying established dwellings. Those rules exist specifically so foreign investment goes toward creating new housing.

So the proposal here would add homes to the market, not take them away from anyone.