Australia’s lower-priced housing market is accelerating faster than premium segments as first-home buyer competition intensifies under the federal government’s expanded 5% deposit scheme. According to reporting by theAustralian Financial Review, homes priced under the raised caps rose 1.2% nationally in October, outpacing the 1% rise in properties above the thresholds.The early data, analysed by housing insight firm Cotality shows unusually strong divergence between lower- and higher-end growth. The scheme, which began on October 1, removed income limits and lifted caps across all capitals, enabling more buyers to enter the market with a 5% deposit and without lenders’ mortgage insurance.Lower-End Homes Outperforming Across Key CitiesCotality head of research Eliza Owen said the spread in monthly growth is the largest since 2009. While the scheme’s direct impact is not yet definitive, the added demand is likely pushing prices higher at the bottom end amid record-low supply.Notable October performance included:Melbourne’s inner east:Sub-$950k homes up1.7%, over four times higher-tier growthSydney’s eastern suburbs:92 bpsgrowth gap favouring sub-cap homesBrisbane’s north:1.9%growth under cap vs1.3%aboveInner Perth:97 bpsdifferenceAdelaide’s north:24 bpsdifferenceHobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Australia’s lower-priced housing market is accelerating faster than premium segments as first-home buyer competition intensifies under the federal government’s expanded 5% deposit scheme. According to reporting by theAustralian Financial Review, homes priced under the raised caps rose 1.2% nationally in October, outpacing the 1% rise in properties above the thresholds.The early data, analysed by housing insight firm Cotality shows unusually strong divergence between lower- and higher-end growth. The scheme, which began on October 1, removed income limits and lifted caps across all capitals, enabling more buyers to enter the market with a 5% deposit and without lenders’ mortgage insurance.Lower-End Homes Outperforming Across Key CitiesCotality head of research Eliza Owen said the spread in monthly growth is the largest since 2009. While the scheme’s direct impact is not yet definitive, the added demand is likely pushing prices higher at the bottom end amid record-low supply.Notable October performance included:Melbourne’s inner east:Sub-$950k homes up1.7%, over four times higher-tier growthSydney’s eastern suburbs:92 bpsgrowth gap favouring sub-cap homesBrisbane’s north:1.9%growth under cap vs1.3%aboveInner Perth:97 bpsdifferenceAdelaide’s north:24 bpsdifferenceHobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
The early data, analysed by housing insight firm Cotality shows unusually strong divergence between lower- and higher-end growth. The scheme, which began on October 1, removed income limits and lifted caps across all capitals, enabling more buyers to enter the market with a 5% deposit and without lenders’ mortgage insurance.Lower-End Homes Outperforming Across Key CitiesCotality head of research Eliza Owen said the spread in monthly growth is the largest since 2009. While the scheme’s direct impact is not yet definitive, the added demand is likely pushing prices higher at the bottom end amid record-low supply.Notable October performance included:Melbourne’s inner east:Sub-$950k homes up1.7%, over four times higher-tier growthSydney’s eastern suburbs:92 bpsgrowth gap favouring sub-cap homesBrisbane’s north:1.9%growth under cap vs1.3%aboveInner Perth:97 bpsdifferenceAdelaide’s north:24 bpsdifferenceHobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Lower-End Homes Outperforming Across Key Cities
Cotality head of research Eliza Owen said the spread in monthly growth is the largest since 2009. While the scheme’s direct impact is not yet definitive, the added demand is likely pushing prices higher at the bottom end amid record-low supply.Notable October performance included:Melbourne’s inner east:Sub-$950k homes up1.7%, over four times higher-tier growthSydney’s eastern suburbs:92 bpsgrowth gap favouring sub-cap homesBrisbane’s north:1.9%growth under cap vs1.3%aboveInner Perth:97 bpsdifferenceAdelaide’s north:24 bpsdifferenceHobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Notable October performance included:Melbourne’s inner east:Sub-$950k homes up1.7%, over four times higher-tier growthSydney’s eastern suburbs:92 bpsgrowth gap favouring sub-cap homesBrisbane’s north:1.9%growth under cap vs1.3%aboveInner Perth:97 bpsdifferenceAdelaide’s north:24 bpsdifferenceHobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Hobart and Canberra were exceptions due to softer overall growth.Affordability Squeeze Driving Demand DownmarketNational home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Affordability Squeeze Driving Demand Downmarket
National home values rose 1.1% in October, the fastest in two years, after February’s rate cut and amid limited listings. Owen noted that price caps may also be encouraging buyers to “bid up” properties near the thresholds, further eroding affordability.She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
She reiterated that long-term solutions lie in reducing investment incentives rather than expanding homebuying grants.Most Popular Suburbs for First Home BuyersEquifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Most Popular Suburbs for First Home Buyers
Equifax mortgage inquiry data shows strong demand in:Sydney:Parramatta, Castle Hill, MarrickvilleMelbourne:Richmond, SouthbankSEQ:Pimpama, Southport, West EndOuter-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Outer-metro areas up to 60 km from CBDs are also rising in popularity, driven by affordability, remote work, and rentvestors. Examples includeLeumeahin Sydney’s south-west andMelton Southin Melbourne’s west. Brisbane’sChapel Hill, though closer to the CBD, still requires lengthy public transport commutes.Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Inquiry volumes are rising faster than mortgage approvals, suggesting many buyers are preparing to enter the market but have not yet purchased.Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
Analysts expect lower-priced homes to continue outperforming as affordability pressures and the 5% deposit scheme funnel demand toward the entry-level market. Higher-end properties may lag as borrowing constraints shape buyer behaviour.Previous ArticleNext Article
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