There have been several pivotal government policy changes over time that have delivered sharp uplifts in property prices. The most significant was in 2009 after the GFC, when the market was in dire straits with virtually nothing selling.
The federal government responded by introducing substantial first homebuyer (FHB) grants that created an unprecedented wave of enthusiastic purchasers entering the market. These buyers actively pursued both new construction and established properties, generating intense competition that drove prices upward across all market segments. In more recent years, the primary challenge has shifted to property availability and affordability thresholds that determine market entry points.
When governments strategically raised first home buyer concession thresholds from $550,000 to $750,000, the market responded immediately, enabling buyers to pay realistic prices for their first properties within this expanded price range. Ironically, this policy adjustment crystallised and legitimised higher price points. From October 1st, the Home Guarantee Scheme undergoes a dramatic transformation, increasing the threshold from $750,000 to $1,000,000 while removing all annual income earning caps.
Buyers can still use a 5 per cent deposit without exposure to lenders mortgage insurance, making homeownership more accessible. I anticipate this policy change will trigger substantial market activity. First home buyers previously excluded due to income restrictions, or price brackets, will aggressively enter the market. This influx will boost first homebuyer purchasing power, with a substantial price increase flowing through the entire property market.
In Brisbane’s prestige property market, flat painted gyprock walls are quietly being replaced. Discerning buyers searching for turnkey luxury are drawn to spaces that offer tactile warmth and architectural permanence and microcement, limewash, and Venetian plaster have taken center stage. Here is why hand-crafted wall finishes are driving premium values in suburbs like New Farm, … […]
Last Saturday I called over 30 auctions at The Calile. The properties ranged from entry level to some of the best homes in town. Our October and November auctions have historically been our biggest events. They provide a great macro view of market performance and, more specifically, who’s confident right now. As I wrote last … […]