We are observing signs of a revival in Australia's property market despite the winter season. Home values nationwide increased by 0.5% in May, resulting in a 1.7% rise over the first five months of the year. All capital cities experienced growth, indicating rising confidence in the market.
Denton Pugh, NAB Executive for Home Lending, highlighted a case illustrating this trend: Emily Chalk, a 32-year-old first-home buyer, recently purchased her first home near Rockhampton in regional Queensland after understanding how the Government's Home Guarantee Scheme could expedite her buying process.
First-home buyers like Emily are increasingly active as banks lower home lending rates, allowing them to borrow more and encouraging them to enter the housing market. NAB's recent data reveals a 16% increase in lending to first-home buyers since February and a 32% increase among home buyers overall.
Although interest rates remain relatively high, recent cuts combined with schemes like the Home Guarantee Scheme are motivating people to pursue homeownership. However, while monthly growth is evident, the annual pace of property price increases has decelerated—a downside for investors but beneficial for new entrants into the market.
Regional markets maintain strong momentum—a trend persisting since the pandemic years—with Queensland hotspots dominating NAB's list of top regional markets so far in 2025. Locations such as Toowoomba, Burnett, Springfield-Redbank, and Sunshine Coast Hinterland lead in home loan activity alongside Geelong in Victoria.
Regional areas offer affordability and long-term growth potential along with charm and work-life balance benefits. For many buyers like Emily Chalk who prefer proximity to family and community familiarity over urban settings like Brisbane, these factors are appealing.
"This continued momentum is promising," noted Pugh but acknowledged that challenges persist with affordability and supply still significant issues requiring strategic policy solutions for new housing development where demand exists.
While typically quieter during winter months, expectations of further interest rate cuts suggest heightened activity compared to usual seasons as preparations build towards spring's busier period.