What the 2025 Election Means for the Australian Property Market
The 2025 federal election has wrapped up, and with Labor securing a stronger mandate, a new wave of housing policies and economic changes is on the way. If you’re buying, selling, or investing, here’s what these decisions could mean for you.
🔑 1. First Home Buyers Get a Big Boost
What’s changing?
Starting January 1, 2026, first-home buyers will be able to:
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Purchase with just a 5% deposit
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Skip Lenders Mortgage Insurance (LMI)
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Buy existing or new homes under the expanded First Home Guarantee Scheme
What it means for the market:
Expect increased demand in the sub-$1 million bracket, especially in metro fringe areas and regional hubs. While this helps buyers get in sooner, it could also drive prices higher due to competition.
💸 2. Interest Rates Are Dropping
The Reserve Bank of Australia (RBA) has begun cutting interest rates, and forecasts suggest we’ll see the cash rate drop to 2.6% by early 2026.
For borrowers, this could mean:
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Reduced monthly repayments
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Improved borrowing capacity
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More buyers returning to the market
➡️ Example: A $600,000 mortgage could become $500+ cheaper per month.
🏘️ 3. Housing Supply Still Lags Behind
The government has pledged to build 1.2 million homes over five years, including:
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30,000 affordable and social homes
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Support for Build-to-Rent developments
The catch?
Construction delays, high costs, and labour shortages mean we may still fall short — pushing prices higher and leaving renters with limited options.
🧾 4. Superannuation Tax Changes Could Fuel Property Demand
Labor’s proposed 30% tax on unrealised capital gains in super accounts over $3 million has investors reconsidering where they park their wealth.
Impact on property:
This may shift more capital into residential real estate, particularly in high-growth areas — adding more competition for existing stock.
📈 5. Political Stability = Market Confidence
A strong Labor win means clearer policy direction, especially in housing and economic reform. This stability tends to:
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Boost investor confidence
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Encourage development projects
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Strengthen consumer sentiment
💬 Final Thoughts: What Should You Do?
With more first-home buyers entering the market, interest rates falling, and demand likely to surge, this is a market to watch — or act on.
➡️ Buyers: Act early before competition intensifies
➡️ Sellers: Take advantage of improved buyer confidence
➡️ Investors: Reassess your strategy as policy and tax settings shift
👋 Ready to make your next move?
Contact the team at MIX Property Group for expert advice and tailored strategies in today’s changing market.
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