Economic updates

Affordable housing market outpaces all segments with 34% growth since 2023 as expanded deposit scheme removes income caps and raises price thresholds. First-home buyer activity surges to highest levels in two years, intensifying competition.

Five per cent deposit scheme works in Melbourne and Sydney where supply matches demand, but Gold Coast shows the trap. Only 27% of houses fall under the cap as policy stimulates demand without addressing housing shortage.

RBA holds cash rate steady as housing inflation proves stubborn. Rents and construction costs remain elevated despite tight policy, creating a paradox where higher rates slow demand but restrict housing supply growth.

Bellevue Hill's Kambala Road tops Australia's most expensive streets at $39.35 million, while Darwin's Austin Street is the cheapest at $117,500. See where your city ranks.

Australia's housing market shows two-speed performance. Major east-coast capitals stall while Perth, Adelaide and regional areas continue climbing. Supply shortages fuel outperformers as auction competition cools nationwide.

Prestigious wine regions don't guarantee strong property growth. Fundamentals like production scale, export markets, and infrastructure investment shape regional property performance more than wine credentials or lifestyle appeal.

AUKUS brings $20B defence investment and 13,000 jobs to Perth, adding steady demand to housing market already stretched by supply shortages. Impact clusters locally rather than metro-wide, reinforcing existing price pressures.

Homes are becoming income-generating assets as solar, batteries and smart systems create financial returns. With 180,000+ batteries installed and new free-electricity schemes from July 2026, homes delivering financial returns will command higher prices.

Regional house prices grew 98.8% since 2015 as city buyers escape expensive markets for lifestyle benefits. Pandemic accelerated the trend, with regional NSW, Victoria, and Tasmania seeing 51%+ growth. Commodity booms fuel Queensland and WA.

Interest rate outlook grows muddier as contradictory signals emerge. Unemployment falls to 4.3%, delaying rate cuts, while construction activity cools rapidly and consumer sentiment remains divided. Data dependency will guide the next move in December.

Meeting Australia's 1.2 million home target requires a shift from site-based to factory-built homes. Modular construction boosts productivity where traditional methods have stalled for decades, but only five per cent of homes use modular methods today.

RBA holds rates at 3.60% as inflation resurges to 3.2% annually. Labour market weakens with unemployment rising to 4.5%, leaving the central bank walking a narrow line between price pressures and economic growth.