Australia’s property market is heating up again. According to the AFR, the “spring trifecta” of government incentives, strong demand, and lower rate expectations is driving prices higher as the warmer months kick in. At the same time, Prime Minister Anthony Albanese has unveiled new housing policies that will shape the market for years to come. So what does this all mean if you’re looking to buy, invest, or simply understand where the market is heading?
The Spring Trifecta
The AFR points to three forces colliding this spring:
- Lower Interest Rate Expectations
With inflation easing, many economists expect the Reserve Bank will start cutting rates by late 2025. Even the anticipation of lower borrowing costs is encouraging more buyers back into the market. - Government Incentives and Policy Announcements
The expanded First Home Guarantee now allows more buyers to purchase with just a 5 % deposit and no LMI, with property caps lifted across the country. Combined with planning reforms and social housing investment, the government is signalling a clear focus on making ownership more accessible. - Tight Supply and Strong Demand
Listings remain scarce while population growth fuels buyer competition. This mismatch between supply and demand is keeping upward pressure on prices.
Together, these factors have created the perfect environment for a spring surge.
Albanese’s Housing Agenda and the 5-Year Outlook
The government’s recent announcements include:
- 5 % deposit scheme: Income caps removed, property price limits raised, making entry easier for first home buyers.
- Ban on foreign buyers of established homes: A two-year freeze aims to free up supply for locals.
- Housing supply targets: 1.2 million homes over five years, though approvals suggest this will be difficult to achieve.
- Billions for social and affordable housing: Ongoing funding through the Housing Australia Future Fund.
These measures are designed to increase access and affordability but may also drive more demand into a market that is already undersupplied.
What It Means for Buyers and Investors
- Short-Term Price Growth
Prices are already rising at the fastest rate in a year. If the spring trifecta continues into summer, expect further growth in 2025. - First Home Buyers
The 5 % deposit scheme is a rare opportunity. Acting early may help you secure a property before competition intensifies. - Investors
Rental demand is strong, vacancy rates are low, and government policy is tilting demand towards new builds. Targeting growth corridors and undersupplied locations could deliver strong returns. - Long-Term Outlook
Over five years, limited supply and population growth will likely keep property values trending upward, especially in well-located suburbs. However, affordability challenges and construction bottlenecks may temper how far and how fast the market can run.
The Australian property market is once again proving its resilience. With government incentives, lower rate expectations, and strong demand driving prices higher, the next five years look set for continued growth.
For buyers, the message is clear: if you’re ready to act, this spring could be the time to move.