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.
A first home buyer paid $1,305,000 at auction for a two-bedroom apartment in Alexandria, $55,000 above the reserve. The converted warehouse apartment at 2/145 Belmont Street drew 30 people and five active bidders. Across Sydney, 561 properties were scheduled for auction this week. In Mosman, a five-bedroom home at 36 Medusa Street passed in at $9.85 million after only one registered party failed to bid. In Huntleys Cove, a downsizer paid $1.97 million for a ground floor apartment, $20,000 above reserve.
Mortgage repayments now consume a record 50.9 per cent of family income, according to PRD Real Estate's latest report. Four interest rate rises this year and bigger loans have pushed housing affordability to a new low. Loan Market figures show lodgements, excluding refinancing, have fallen 24 per cent nationally since January, with investors dropping 44 per cent. Queensland recorded the sharpest fall, with investor lodgements down 56 per cent. Refinancing reached a record 57 per cent of Loan Market lodgements in September, as homeowners seek more room in their budgets.
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Muhammad and Megan Khan have bought their first home in Frankston North for $622,000. The couple spent two years living with Megan's parents in Carnegie to save a deposit. Their three-bedroom clinker-brick house sits opposite a playground and parkland, which suits their daughter and dog. REA Group modelling ranks Frankston North second for potential annual house-value growth over five years, though these figures are projections. Ms Khan encouraged other first-home buyers to find a good mortgage broker and understand their borrowing capacity.
A man whose parents rented a Mona Vale beach cottage when he was a child has bought the house at auction for $4.5 million. The three-bedroom home at 78 Surfview Road sold under the hammer after the buyer's early offers were rejected. The buyer said he had huge memories of the house and called it his dream home. In Bronte, an oceanfront home at 522-524 Bronte Road sold for $25.2 million to an owner-occupier. Preliminary data showed a Sydney auction clearance rate of 52 per cent for the week.
Mortgage repayments are now cheaper than rent in some suburbs, as high rents and falling property prices open a window for tenants. Guardian Australia's analysis of Cotality data found median rents in inner-city Melbourne, suburban Canberra and Darwin nearly match weekly loan repayments. In some suburbs, repayments are cheaper than rent for the typical property. Analysts say repayments on new loans rose overall over the past year, as interest rates climbed. Cotality's researcher said the price drops in apartment-heavy areas were anomalies, and most houses remain more expensive to buy than rent.
Just 452 Melbourne homes are set for auction this week, a 60 per cent drop on last year. The Victorian government's new auction laws take effect amid the weakest October auction market in years. Last week's clearance rate fell to 49.3 per cent, and new listings dropped 14 per cent in September. Real Estate Institute of Victoria chief executive Toby Balazs said the legislation remains confusing and unclear for buyers. Median home prices in Melbourne fell 5.2 per cent over the year to $819,000 in September.
Chelsea Bony and Connor Menzies left city living for Quilpie, a remote Queensland town offering a $20,000 grant to anyone who builds a home there and lives in it for 12 months. The couple bought a former church for $150,000 and are renovating it into their home. Quilpie Shire Mayor Ben Hall says capital city property has become unaffordable for many people. The council plans to release 60 new residential lots, and the grant will be extended into 2027.
Sydney property prices have fallen for seven consecutive months, but a small number of suburbs are bucking the trend. Realestate.com.au data shows house prices fell in nearly 97 per cent of Sydney suburbs over the past three months, while six recorded modest median gains. Unit prices in Stanhope Gardens and Vaucluse rose by double digits. Ray White economist Atom Go Tian linked the falls to interest rate rises and buyer sensitivity in Sydney's highly leveraged market. The Australian Property Institute expects a recovery from July to September 2027, when new tax rules take effect.
Regional Victoria's property market grew in the third quarter, with house prices up 1.2 per cent to $673,500, according to the Real Estate Institute of Victoria. Cheaper homes held up better than premium ones, with lower-quartile prices in metropolitan Melbourne falling less than upper-end prices over the September quarter. Median prices in Melbourne softened 0.7 per cent over the quarter. Real Estate Institute of Victoria chief executive Toby Balazs said the market was resilient despite higher borrowing costs and cost-of-living pressures, and called on the next state government to review auction and property sale reforms.
Dozens of Australia's premium suburbs have dropped out of the most expensive price bracket since September 2025, with 52 suburbs and 66 unit markets falling. Most were in Sydney and Melbourne, where citywide median prices fell 5% and 5.2% over the past 12 months. Realestate.com.au economist Megan Lieu said higher interest rates have limited borrowing capacity at the top end of the market. Meanwhile, several suburbs in Brisbane, Adelaide and Perth have moved into the top bracket after strong price growth, including Kuraby and Sunnybank in Brisbane.
An investor who already owned units in the Goldsbrough building in Pyrmont paid $666,000 for another apartment at auction on Saturday. The buyer beat a first home hopeful, as Sydney's auction clearance rate reached 46 per cent, its lowest level this year. Domain recorded the figure from 472 reported results, with 176 auctions withdrawn. Agents and economists linked the softer market to the fourth cash rate rise, which has made many buyers nervous.
A renovated five-bedroom home in Moonee Ponds sold for $2,817,500 after it passed in at auction on Saturday. The vendors, who are moving to Queensland, cut their price hopes. In Yarraville, a converted shopfront home sold for $1,265,000 after drawing three bidders. In Kingsville, a renovated cottage sold for $1.34 million in post-auction negotiations. Agents say renovated homes in good locations are still transacting well, while unrenovated stock is struggling more.
The Australia Institute says the nation's housing market is seeing its biggest affordability improvement in 50 years. Its chief economist, Greg Jericho, credits Labor's curbs to investor tax breaks. National housing prices have fallen 5.2 per cent since March, according to property data firm Cotality. Investor loans for established homes fell 14 per cent in the June quarter, while loans for new builds rose 4.4 per cent. Rent growth has eased, and independent economist Saul Eslake says the changes have not pushed rents higher.
A four-bedroom Art Deco home in Essendon passed in at $2.55 million at auction on Saturday, then sold in post-auction negotiations for $2,655,000. The buyer, a local professional looking to upgrade, paid just below the $2.7 million reserve. Domain recorded a preliminary clearance rate of 58 per cent across Melbourne, with 78 auctions withdrawn. From Friday, new state laws require vendors to publish reserves at least seven days before auction. Agents say buyer hesitancy is growing after the September interest rate rise.
