Investors and First Home Buyers Surge Back to Australia's Property Market
Investors and First Home Buyers Surge Back to Australia's Property Market
1
Australia's property market is experiencing a notable revitalisation, spurred largely by Labor’s recently implemented First Home Guarantee scheme.
Designed to make homeownership more accessible, this scheme allows first home buyers to enter the market with just a 5% deposit, bypassing the need for lenders’ mortgage insurance through a taxpayer-guaranteed 15% of the mortgage.
Since its introduction, it has sparked significant interest among prospective purchasers, marking a significant shift in the housing sector.
According to projections by Lateral Economics, the scheme is expected to appreciably inflate national home prices by 3.5% to 6.6% by 2026. However, more pronounced effects are anticipated in areas beneath the scheme's generous price caps, where property values may climb between 5.3% and 9.9%. The allure of new opportunities for first-time buyers has prompted an optimistic rush into the property market, evident through the positive signals reported by real estate agents.
Compounding this phenomenon is a concurrent surge in investor activity within the housing market. Data presented by Justin Fabo of Antipodean Macro highlights a remarkable increase in investor housing credit growth, which rose by 9.1% annually-the highest rate in a decade. Additionally, he notes that the volume of Google searches for "investment property" has reached unprecedented levels, the highest in over two decades. This aligns with a significant rise in house price expectations, with Westpac’s survey in August reaching a 15-year peak.
The confluence of first-home buyer enthusiasm and revitalised investor demand points to a heightened competition for properties, which could further inflate prices beyond their current high marks. With Australia already grappling with some of the most expensive housing markets globally, these trends pose substantial challenges to affordability across the nation.
Observers are now closely watching how the market will adapt to these pressures. The potential for increasing property prices can create barriers for future homeowners, intensifying the existing affordability crisis. Policymakers and stakeholders may need to explore additional measures to ensure that rising prices do not obstruct access to homeownership for new buyers, while balancing the needs of an invigorated investor segment.
Published:Friday, 3rd Oct 2025 Source: Paige Estritori
In recent years, a notable trend has emerged among Australian entrepreneurs: a growing preference for acquiring existing businesses rather than launching new startups. This strategic shift reflects a desire for stability and immediate scalability, reducing the inherent risks associated with starting a business from scratch. - read more
Australian accountants are rallying for the establishment of a government-backed Small Business Loan Guarantee to facilitate the acquisition of existing small and medium-sized enterprises (SMEs). This initiative aims to address the financing challenges faced by prospective buyers, particularly in light of the impending retirement of numerous business owners. - read more
Welcome to our comprehensive guide on the essential steps to launching your start-up successfully. Whether you're a budding entrepreneur or an experienced business owner looking to refine your approach, having a solid plan in place is crucial for success. - read more
Small businesses often require loans to grow and expand their operations. However, not all loan applications are approved, and denials can be frustrating and demotivating for business owners. Understanding the reasons behind loan denials is critical to avoid making the same mistakes and increase the chances of future loan approvals. - read more
Need Help Finding a Loan?
All finance quotes are provided free (via our secure server) and without obligation. We
respect your
privacy.
Knowledgebase
Collateral: An asset that a borrower offers as a way for a lender to secure the loan.
