Real Estate
4 December, 2025
First home buyers rivalry
AUSTRALIA’S first home buyer market is a fascinating and influential segment of the residential landscape.
Demand from new entrants remains robust and activity is being shaped by affordability challenges, shifting regional preferences and a renewed focus on housing accessibility.
Most recently, the federal government’s expansion of first home buyer assistance has become a significant demand driver.
The shift from grants to more direct financial involvement –including government-backed lenders’ mortgage insurance (LMI) and equity contributions – represents a structural policy change designed to help people into the market sooner.
These schemes now allow entry with deposits as low as 2% to 5%, and the lifting of Home Guarantee Scheme caps, combined with the removal of place and income restrictions, has widened eligibility significantly.
However, history shows that heightened first home buyer participation can place upward pressure on prices, particularly during periods of constrained supply. Scheme participants are likely to be concentrated in lower-growth, outer-suburban or unit-dominated markets, where property values have traditionally been more vulnerable to downturns.
– Kevin Brogan is a national director at Herron Todd White property valuers
