Where is the property market heading?

What First-Home Buyer Incentives are Changing?

Universal 5% deposit access: All first home buyers can now purchase with as little as a 5% deposit—no income caps, no quotas, and no mortgage insurance (LMI). Property price caps have also been raised to reflect current market values.• • • • Significant cost relief: This could save prospective buyers tens of thousands in LMI. Nationally, first home buyers are projected to avoid around $1.5 billion in mortgage insurance in the first year.

Market Impacts: A Double-Edge Sword for Buyers
Experts warn the expanded scheme may spark a short‑term surge in demand—and prices—especially where supply is tight. Some models anticipate price rises of 3.5% to 6.6% nationally by 2026, with increases of up to 9.9% in first‑home buyer segments.
Criticism centres on the risk that the scheme helps buyers who don’t need it and fails to address the underlying shortfall in housing supply.Sydney South & Sutherland Shire Markets: What it Means LocallySydney’s southern suburbs, including the Sutherland Shire, are already experiencing constrained supply, elevated median prices, and strong buyer competition.• Short Term Price Pressure: More buyers entering the market with lower deposit barriers immediately—combined with limited stock—may push local prices higher.• Faster Entry, But at a Cost: First home buyers may reach the market sooner—but could find themselves bidding against others in the same scheme, reducing their competitive edge.• Affordability Still Hinges on Supply: Without a meaningful increase in new builds, especially in growth corridors and infill areas, affordability gains could be undermined.Strategic Takeaways for Property Buyers1. Act with PreparationGet finance pre approval, check eligibility for government schemes, and engage a buyer’s agent to move strategically.2. Watch Price Caps & Lender ChoicesKeep an eye on caps relevant to your location and compare offers from different banks, including smaller or customer owned lenders.3. Think Long TermIf you can afford to, aiming slightly above entry price may guard against rapid inflation, but remember: strong fundamentals still lie in planning, location, and property quality.4. Stay Informed on Supply InitiativesThe broader housing agenda includes shared equity and modular construction, but delivery will take time. Keep updated on local development pipelines and infrastructure turns.In SummaryThe October launch of the 5% deposit scheme opens a rare opportunity—but also a moment of caution. For first-home buyers in Sutherland Shire and Sydney South, it’s time to move decisively—but smartly. With expert support and market know-how, you can turn this federal boost into a qualified win.