A Melbourne couple has moved into a new home that cost $80,000 less than they planned to spend. Jeyakaran Karnan and Shree Harini Vinothkumar chose a $720,000 house-and-land package in Clyde North after finding auctions stressful. They built at the Orana estate, where they hoped their son Yaalan could grow up among other young families. The couple used the federal 5 per cent deposit scheme, which reduced their deposit to $36,000. Construction took about four months, with the keys arriving roughly 10 months after they signed up.
South Australia plans another 300 homes under its Rent To Own scheme, aimed at first-home buyers and former owners who have spent years renting. The state government says planning and construction are under way, following the allocation of all 125 homes in the initial pilot. Under the scheme, buyers sign a sale contract and lease together, renting at 75 per cent of market rent for up to two years while the purchase price is fixed. Housing Minister Nick Champion said the scheme gives people a second chance at home ownership.
First-home buyers who used the government's 5 per cent deposit scheme in Sydney and Melbourne unit markets face the greatest risk of negative equity, according to a FoundIt report. Average home prices in both cities are more than 6 per cent below last year's levels. Buyers who entered the market shortly after the scheme's October expansion could owe tens of thousands of dollars after selling. Shadow Housing Minister Andrew Bragg called the expansion unfair, while a spokesperson for Minister Clare O'Neil said the scheme had saved buyers money.
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First-home buyers paid $1,286,000 for a five-bedroom terrace at 201 Swan Street in Richmond after a seven-minute auction contest. The buyers' girlfriend's father helped them meet the final price. Melbourne's preliminary auction clearance rate reached 56 per cent, the highest among the nation's capitals. A Malvern house passed in below its reserve, while a Northcote house sold for $1.5 million. Agents said house prices are down, and some expect another interest rate rise.
First-home buyers have been locked out of 169 previously affordable Queensland property markets since the federal 5 per cent deposit scheme was expanded a year ago. An analysis of Realestate.com.au data found that 852 of 890 house and unit markets have risen in value. Deagon houses jumped 31.2 per cent to $1.187 million. Since October, new Queensland mortgage lodgements have fallen 30 per cent, with first-home buyer applications down 18 per cent, according to Loan Market. Buyer's agent Lauren Jones said rising interest rates and living costs have cut borrowing power, leaving young buyers largely absent from the market.
Typical home prices in 18 Melbourne suburbs have moved above the $950,000 cap for the federal first-home buyer scheme, according to new REA Group figures. The cap was lifted by $150,000 last October, but rising prices have pushed these suburbs beyond it again. Templestowe's median unit price now sits $31,500 above the limit. Industry figures say the scheme makes larger mortgages easier to access but does not necessarily make housing more affordable, while one builder reports packages starting at about $450,000.
A new McGrath Report has named Sunshine, Werribee, Reservoir, Boronia and Highett as Melbourne suburbs likely to perform strongly in 2027. McGrath Estate Agents founder John McGrath said Sunshine's days as a secret are numbered. Sunshine is set to become a major stop on the Melbourne Airport Rail Link, with station works underway. Local agents expect the project to lift demand and prices. Buyers' advocates say Sunshine, Werribee, Boronia and Reservoir offer affordable entry points for first-home buyers.
Parents who act as guarantors for a child's home loan could be tied to it for nearly 14 years if house prices fall 10 per cent, according to new Primara Research data. A guarantor is normally released once the loan balance falls to 80 per cent of the property's value. REA Group says prices have already dropped 3.3 per cent over six months, driven by rising interest rates and tax changes. Higher rates have also reduced borrowing capacity, making it harder for first-home buyers to enter the market.
House prices in Victoria's regions rose 6.7 per cent over the past year, even as the Melbourne market slowed after interest rate rises. Glenelg recorded the biggest jump, with prices climbing more than a quarter in 12 months. Agents in Portland and Ararat say interstate investors are driving demand, while limited listings push prices up. Mansfield was one of the few areas where the median house price fell, dropping by more than $75,000 in the September quarter. Experts say regional areas are attracting buyers through relative affordability and more job options.
Victoria has signed a federal housing deal that will support 25,600 homes reserved for first-home buyers across 20 locations, including Melbourne, Geelong, Ballarat and Bendigo. Federal housing minister Clare O’Neil announced the agreement, which is part of a commitment to deliver 100,000 new homes for first-home buyers nationally. The federal government will provide $2.5 billion, while the Victorian Government will contribute at least $499 million. The funding will go towards essential infrastructure such as roads, water, sewerage and electricity connections. The first homes are expected to be delivered in 2027.
Australian house prices fell a record 4.7 per cent over the September quarter, according to Domain data. Perth recorded the sharpest drop at 7.4 per cent, while Brisbane and Adelaide also logged their steepest falls on record. Housing Minister Clare O'Neill said the movement reflected the cyclical nature of the property market. Economists have largely linked the falls to the Reserve Bank lifting the cash rate to its highest level in 15 years. Domain's chief residential economist Nicola Powell said prices could keep falling for many months, with confidence unlikely to recover before an interest rate cut.
New Westpac research shows 38 per cent of South Australians are delaying plans to buy or sell because of interest rate concerns, a higher share than in any other state. Housing affordability was the biggest factor, cited by 44 per cent. Westpac consumer chief executive Carolyn McCann said mortgage applications had fallen about five per cent since May but had risen 15 per cent from the July low. Oliver Hume data shows 89.5 per cent of SA buyers in September were first-home buyers, the highest share in a year.
A local owner-occupier paid $1,252,000 at auction for a Port Melbourne house with a designed crack in its facade. The two-bedroom home at 29 Little Cruikshank Street was designed by architect Robert McIntyre. Four local bidders competed, and the home had been on the market for only 10 days. Across Melbourne, Domain recorded a preliminary clearance rate of 53 per cent, with 59 auctions withdrawn. In Cheltenham, a young family paid $1.3 million for a four-bedroom house, and in Greensborough a first home buyer paid $635,000 for a villa unit.
