From 1 October 2025: No cap on places and higher property price limits for first home buyers

The expansion of the Scheme is expected to have a noticeable impact on the property market:

• Increased buyer demand: With no cap on places, more first-home buyers are likely to enter the market, creating stronger competition for properties.
• Support for affordability: The removal of income caps and the increase in property price limits open doors for buyers who previously didn’t qualify.
• Regional growth: Merging regional guarantees into the First Home Guarantee will make it easier for buyers in regional areas, boosting demand outside capital cities.
• Shift in market dynamics: Sellers may benefit from stronger demand, particularly in suburbs where property prices align with the new caps.
• Opportunities for investors and developers: Higher first-home buyer activity may influence entry-level housing supply and long-term market trends.
• Potential price uplift: Increased competition may push property values higher, especially in entry-level markets.
• Equity growth for early movers: Buyers who act quickly may secure properties before price growth accelerates, giving them a valuable equity advantage.
• Improved confidence in the market: Broader access and policy certainty could encourage hesitant buyers to take action, stimulating overall market activity.
• Potential impact on investor portfolios and the broader financial market: Increased first-home buyer activity may influence investor behavior, leading some to adjust property investments or diversify into other assets, potentially affecting local stock market sentiment.

   

  Together, these changes are set to reshape the market from October 2025. For buyers, timing and strategy will be more important than ever.