With the federal election now settled, attention is turning to how the Albanese Government’s second term will influence Australia’s housing market. A series of major housing reforms are already underway, aimed at boosting accessibility and easing affordability pressures.
Labor’s expanded 5% deposit scheme is a significant move, removing income caps for first-home buyers and widening the pool of eligible applicants. The Help to Buy program has also gained momentum, with an additional $800 million in funding to support shared equity purchases. Further bolstering supply and affordability, a $10 billion pledge to deliver 100,000 new homes and the most significant increase to Commonwealth Rent Assistance in over 30 years are set to roll out. A two-year ban on foreign buyers is also in effect, with the intention of prioritising local demand.
At the same time, interest rate cuts are firmly on the horizon. NAB forecasts the cash rate could fall to 2.6% within the next year, while other major banks predict a figure closer to 3.5% by the end of 2025. While this may help restore buyer confidence, affordability constraints are expected to keep any price growth in check.
In Melbourne, dwelling values remain 5.4% below their peak. However, improving borrowing capacity, strong population growth, and increased government support for buyers suggest a potential upswing. For those looking to enter the market or make a move, the coming months may offer a window of opportunity before competition intensifies.
If you’re considering your next step, now is a smart time to seek expert guidance. Connect with your local Noel Jones team or visit noeljones.com.au for more information.
