Australia’s housing shortage is well-known by now. The government’s $10 billion Housing Australia Future Fund aims to deliver 40,000 new social and affordable homes over 4–5 years, but progress has been slow. By July 2025, only 370 homes were completed (well below the 700 expected). On the positive side, contracts have now been signed for 18,650 homes (about $14 b committed), and roughly 25,000 more are at various stages of planning. (Senate delays have set these projects back by almost a year.) All this means new supply is still lagging demand, and buyers face tough competition.
- Low listings, sellers’ market: Nationally, home listings are about 18% below the 10-year average. Auction clearance rates in Sydney and Melbourne have surged above 70%, indicating multiple bidders on most properties. In simple terms, this is a seller’s market: well-priced homes attract quick bids.
- Surging demand from incentives: The expanded First Home Guarantee (effective Oct 2025) removes previous income/place caps and raises price caps, letting many buyers enter the market with only a 5% deposit and no LMI. This has already sparked a frenzy of first-home buying. Without a faster rise in supply, prices are expected to stay firm.
Tips for Buyers in a Tight Market
With demand outpacing supply, act early and prepare. Here are key strategies a buyer’s agent would use to help you compete:
- Get finance ready: Have your loan pre-approval in place before you bid. In today’s market, getting approved lets you make firm offers quickly. Expert advice is that buyers have a limited window at current rates before prices climb further.
- Use government incentives: If you’re a first-home buyer, tap into the 5% deposit scheme. It lowers upfront costs and can make your offer more attractive. (The scheme expansion has flooded the market with extra buyers, so lock in pre-approval to be competitive.)
- Focus beyond hype: Look at growth corridors, not just hot inner suburbs. Areas with strong population and infrastructure growth offer better value and solid long-term gains. Fundamentals like high migration and smaller household sizes remain strong, so suburbs on the upswing tend to outperform.
- Seek off-market deals: Often the best bargains never hit the open market. An experienced buyer’s agent taps networks to find off-market opportunities – homes for sale by word-of-mouth or private listing. This gives you a big advantage when stock is tight.
- Stay disciplined: It’s easy to get caught up in bidding wars. A professional buyer’s agent keeps you on budget and negotiates strategically. As one industry report notes, buyers’ agents help prevent “FOMO” panic and overpaying in a frenzy. We use data and local market intel to make smart offers on your behalf, not just competing harder but smarter.
Smart Buying Strategies for Long-Term Property Growth
Long-term, housing demand in Australia remains robust despite current price levels. That means even with today’s tight market, finding the right opportunity can lock in future growth. In practice, this often means targeting up-and-coming suburbs with good infrastructure and relative affordability (for example, outer-Brisbane, fringe Melbourne and Sydney growth areas).Ready to take action? Contact Key2Dreamz on +61 439 260 917 or book a free consultation to discuss your needs. We’ll help you move fast and confidently in today’s tight market. For more market insights and buying tips, visit our Real Estate News blog and check out our latest analysis on housing supply and demand.