A curated look at the latest headlines shaping Australia’s property landscape, from shifting buyer expectations to record-breaking investor activity and the continued rise in national housing values. Here’s what you need to know this month.
Buyers, Borrowers and Sellers Face Tough Property Year After RBA Holds
The RBA’s decision to hold the cash rate at 3.6% has signalled a challenging year ahead for buyers, borrowers and sellers. Despite no increase, affordability remains constrained, with annual house price growth now at 10.6% due to persistent demand and limited supply. Expanded first-home buyer schemes have intensified competition in tight entry-level markets. Sellers continue to benefit from rising prices, while buyers face higher repayments and fewer options.
Are 5 Per Cent First-Home Deposits Pushing Up Prices?
This ABC News analysis examines whether enabling first-home buyers to enter the market with just a 5% deposit is placing upward pressure on prices. Lower deposit hurdles have brought more buyers into the market, contributing to the fastest growth in the bottom-to-mid segments in two years. Although the scheme aims to support affordability, experts warn it may be unintentionally stimulating additional competition and price increases. The report features real buyer perspectives along with broader economic concerns.
Australia’s Housing Market Reaches Incredible $12 Trillion Milestone After Doubling in 10 Years
Australia’s residential property market has surpassed a valuation of $12 trillion after doubling over the past decade. This surge has been fuelled by population growth, limited supply and sustained buyer demand. Detached homes continue to outperform units, increasing the value gap between dwelling types. Queensland, South Australia and Western Australia have grown their share of national property wealth, while New South Wales and Victoria have edged slightly backwards. The milestone highlights both the strength of the housing market and the increasing difficulty for new buyers to enter it.
Australian Homebuyers Lower Expectations in Hot Housing Market
Persistent price rises and a shortage of listings are prompting Australians to adjust their homeownership expectations. Many buyers who once aimed for detached homes in popular suburbs are now considering townhouses and units as more realistic and affordable entry points. Although borrowing capacity is gradually improving, the level of available housing remains significantly below demand. Affordability and practicality are becoming the primary drivers in modern buyer decision-making.
Australian Home Loans – Property Investors
Investor lending has surged to around 40% of all new home loans, raising concern among regulators. In the September quarter alone, investor borrowing rose by 17.6%, while first-home buyer lending grew far more modestly. APRA and policymakers warn that accelerated investor activity could place additional pressure on prices and reduce opportunities for owner-occupiers. The widening divide between investor strength and first-home buyer challenges remains a prominent market theme.
Australian House Prices Rise Fastest in Four Years (2025)
Australian house prices are rising at their fastest pace in four years, driven by strong demand, restricted supply and the lingering effects of earlier low-interest-rate settings. This momentum benefits sellers but continues to place pressure on affordability for buyers. The article notes that while conditions remain strong, potential policy shifts or future rate adjustments could influence the market outlook over the coming year.
Final Thoughts
Across this month’s key updates, several themes stand out:
- Tight supply remains the core driver of price growth.
- Buyer support schemes can unintentionally intensify competition.
- Investor lending is accelerating faster than first-home buyer activity.
- Australians are adjusting expectations toward more affordable dwellings.
- Sellers continue to benefit from strong demand, though risks remain present.
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