The Reserve Bank of Australia recently decided to keep interest rates unchanged, despite expectations from the market and economists for a rate cut. According to RBA Governor Michele Bullock, “we are on a path to easing further,” suggesting that while rates remain steady now, reductions are anticipated in the future.
Denton Pugh, NAB Executive for Home Lending, noted that although many buyers were hoping for lower rates this winter, activity in the housing market has increased compared to previous years. He said, “Twelve months ago, many buyers were holding back due to higher rates. Fast-forward to today: two rate cuts behind us, and NAB expecting another two this year, many home buyers, especially first-home buyers, see this as a window of opportunity before the market heats up further. We’re not seeing a buying frenzy, but things are definitely busier this year. In fact, the average number of bidders at auctions nationwide has reached its highest level in 18 months. Momentum is building well ahead of the traditional spring peak.”
Government initiatives have continued to support new entrants into the property market. The Home Guarantee Scheme is enabling more Australians to purchase their first homes with lower deposits and is set for expansion in 2026. Additionally, Queensland and Western Australia have updated their assistance programs for homebuyers.
In Queensland, eligible first-home buyers no longer pay stamp duty when purchasing or building a new home regardless of price. The state’s 2025 budget also introduced a “Boost to Buy” shared equity scheme aimed at helping those with smaller deposits enter the market.
Western Australia has also adjusted its stamp duty concessions to reduce upfront costs for first-home buyers.
Pugh emphasized the impact of these changes: “I’m always hearing stories where after talking to a home lending expert, a customer realises they can break into the property market sooner than expected. If you’re in that camp, thinking about buying but not sure where to start, it’s worth having that conversation.”
NAB’s proprietary home lending data from January through May 2025 indicates that Truganina in Melbourne’s west was the most popular metropolitan suburb among homebuyers so far this year. Five out of ten top spots went to outer Melbourne suburbs. Other areas such as Roxburgh Park (Melbourne), Yarramundi – Londonderry (Sydney), Point Cook (Melbourne), Cranbourne East (Melbourne), Tarneit (Melbourne), Schofields (Sydney), Wentworthville (Sydney), Piara Waters – Forrestdale (Perth), and Prestons (Sydney) also ranked highly.
Affordability remains an important factor for buyers—particularly first-time purchasers—who are increasingly looking toward outer suburbs where housing is more affordable and space is less limited. Improved infrastructure projects have made these locations more accessible by reducing commute times into central business districts.