The 2025 Federal Election & the Property Market
23rd May, 2025
The 2025 federal election has brought significant policy changes that are already influencing the Australian property market. While some measures are still pending legislation, their potential impact is prompting both purchasers and vendors to reassess their strategies.
Key Policy Changes Affecting the Property Market
One of the most notable proposals is the expansion of the First Home Guarantee scheme. If passed, this policy would allow all first-time buyers to purchase a home with just a 5% deposit, eliminating the need for lenders mortgage insurance (LMI). This change could make homeownership more accessible for many Australians.
Additionally, the government has pledged $10 billion to construct 100,000 new homes exclusively for first-time buyers. This initiative aims to increase housing supply and ease affordability pressures.
Potential Impacts
For purchasers, these policies could lower entry barriers, making it easier to enter the market. However, increased demand may lead to higher property prices, particularly in high-demand areas such as Sydney.
Vendors might find the current market favourable, with potentially more purchasers entering the market. While purchaser interest may grow, vendors should stay up to date with local market trends before making decisions.
Considerations for Investors
Investors should stay informed about these policy developments, as changes in supply and demand dynamics could affect property values and rental yields. It’s advisable to consult with property experts to navigate these changes effectively.
The 2025 federal election has introduced policies that could significantly impact the property market. While some measures are still to be legislated, their potential effects are already being felt. Investors should stay informed and consider seeking professional advice to make informed decisions in this evolving market.
At Bangalow Conveyancing, we specialise in property law and conveyancing services. Our team is closely monitoring these policy changes and can provide expert advice tailored to your specific needs. Whether you’re buying, selling, or investing, we are here to guide you through the complexities of the property market. Contact us today to ensure your property decisions align with the latest developments.
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