The Rising Report #1 – How New Laws and Elections Are Shaping Australia’s Housing Market

Election Results & Investor Impacts

Australia’s latest elections are putting housing in the spotlight. Western Australia’s state election in March saw Premier Roger Cook’s Labor government re-elected on a platform heavily focused on easing the housing crunch. The takeaway? Voters everywhere are demanding action on housing supply and affordability, and governments are responding.

Meanwhile, the federal election on May 3 looms large. The major parties are in rare agreement on key property tax settings – both Labor and the Coalition vow no changes to negative gearing or capital gains tax concessions if elected. This bipartisan stance signals stability for investors who rely on those tax benefits. However, a wildcard is the balance of power: the Greens want to abolish negative gearing and halve the CGT discount, and a hung parliament could put those ideas back on the table.

New Regulations: What’s Changing for Property?

Several new property regulations and proposals have emerged in the past month, at both state and federal levels:

• Foreign Buyer Crackdown: The Albanese Government has moved to ban foreign investors from buying existing residential properties for 2 years (from April 1, 2025) and hiked fees for foreign purchases. The aim is to ease competition for locals and channel investment into new housing. In practice, overseas buyers now face triple stamp duties on established homes (deterring them from bidding against Aussies) while getting fee discounts if they fund new developments. Penalties for leaving properties vacant have also doubled. For local investors, this policy is a win: less foreign competition for existing houses means more breathing room and potentially better deals domestically.

• State Tax Breaks for Home Buyers: In a bid to boost construction, Western Australia expanded its stamp duty concessions in April. First-home buyer exemptions now apply to pricier homes (up to $500k with no duty) and the 75% off-the-plan purchase concession was both extended to mid-2026 and made more generous (covering new dwellings up to $750k) wa.gov.auwa.gov.au. This move should stimulate off-the-plan apartment sales and help developers get projects out of the ground.

• Queensland Rental Law Reforms: Investors with properties in QLD have new tenancy rules kicking in on May 1. The changes include a standardised rental application form (to simplify and level the playing field for renters) and tighter limits on what personal info landlords/agents can ask fo rrta.qld.gov.aurta.qld.gov.au. Notice periods for property entry will double from 24 to 48 hours. These tweaks mean a bit more admin and transparency in the leasing process. The big picture: states are gradually tilting laws to protect tenants – something to be mindful of when managing rental portfolios.

Market Update: Prices, Rents & Trends

Australia’s property market has been on a rebound path in early 2025. March data from CoreLogic showed home values rising +0.4% nationally,  marking a second month of gains and even pushing prices to fresh record highs. This turnaround comes on the heels of an RBA interest rate cut in February, which gave buyers a confidence boost. Virtually every capital city saw prices climb in March (Hobart was the only exception), with Sydney up +0.3% and Melbourne +0.5% for the month abc.net.au.

Melbourne’s market in particular is showing signs of life after a prolonged slump. Values in Melbourne have ticked up ~0.9% over the past two months, though they remain about 5.6% below the city’s late-2021 peak. In other words, there’s still room to run before Melbourne prices hit new highs again. Supply is part of the story – housing stock on the market is tight, and new building isn’t keeping up. Construction costs are high and skilled labour is scarce, so Australia’s housing supply pipeline remains constrained, adding a floor under prices corelogic.com.au even as higher interest rates had cooled demand.

Outside the big cities, regional markets are leading on annual growth. Parts of WA’s Midwest (around Geraldton) and Queensland’s far north (Townsville) have seen stellar year-on-year price gains above 20% corelogic.com.au. This reflects local economic booms (mining, infrastructure, migration) and the shift of some buyers to affordable lifestyle regions during the past couple of years. For investors, it underscores that there are multiple markets within “the market” – and some regionals are offering strong capital growth off a low base.

On the rental front, it’s a tale of record-high rents but slowing growth. The national rental index crept up +0.6% in March abc.net.au, which is much gentler than the 1%+ monthly rent surges we saw a year ago. In fact, annual rent inflation is now down to about 3.8% – the slowest pace since early 2021 abc.net.au. Melbourne recorded the smallest rent increase of all capitals last month abc.net.au, suggesting renters there might finally catch a slight break. That said, vacancies are still extremely low (around 1.5% nationwide, roughly half the pre-COVID norm abc.net.au), so competition for rentals remains fierce and outright rent drops are rare. The upshot: landlords are still in a strong position, but the days of double-digit rent hikes may be behind us as more supply gradually comes on and migration stabilises.

Notable Property Sales in April

April saw some headline-grabbing sales that show the two-speed nature of the market – premium properties are smashing records, even as the broader market remains price-sensitive:

• Australia’s priciest home ever sold: An off-market deal for the famed “Coonac” estate in Toorak, Melbourne reportedly closed in the $115–$150 million range. This heritage 1860s mansion on over a hectare sets a new national price record, eclipsing even Sydney’s highest sale. The buyers (rumored via the AFR) paid for exclusivity, history, and land – Coonac hadn’t traded in decades. For context, Melbourne’s previous top sale was ~$80m in 2022, so this is a massive leap. It underlines how top-tier luxury real estate is a world of its own, often defying general market gravity.

• Hot auction in Oakleigh: In a completely different segment (commercial property), a landmark retail building on Eaton Mall in suburban Melbourne sold for $12.1M under the hammer. Over 200 people turned up to watch high-net-worth investors battle it out. The final yield came in at an ultra-tight 2.58% – reflecting intense demand for well-located assets (in this case a corner site with big-name tenants in a cafe precinct). This was the highest price ever for that strip. The lesson for investors: quality properties in prime locations (be it a blue-chip retail strip or a sought-after suburb) are still commanding top dollar in competitive sales.

• Other noteworthy deals: Across the country, there have been strong results for scarce, A-grade properties. Sydney’s prestige market continues to see whisper-quiet sales in the $30M, $40M+ range along the harbor. Brisbane and the Gold Coast have logged a few $5M-$10M sales of luxury homes (think riverfront estates, beachfront residences) – often to interstate buyers chasing lifestyle and relative value. And in Perth, the combo of a mining boom and low stock has pushed some suburbs (like Cottesloe and Nedlands) to record price levels. The common thread is scarcity value: when a one-of-a-kind property comes up, buyers are willing to stretch, even if overall sentiment is cautious.

Other Key Insights for Investors

Beyond the news of the day, here are a few broader trends and strategic insights to keep in mind:

• Interest Rates & Finance: The RBA held the cash rate at 4.1% in April abc.net.au after that surprise February cut, and there’s growing anticipation of further easing later this year. In fact, market odds suggest a rate cut could come as soon as May or mid-year. For investors, this means the tide on borrowing costs is turning. If you’ve been stretched by the rapid rate rises of 2022–24, relief may be in sight. It’s a good time to review your loan portfolio – speak to your broker about refinancing or locking in lower rates ahead. Easier finance can also bring more buyers back into the market, so be prepared for competition to pick up in the second half of 2025 if rate cuts materialise.

• Infrastructure moves: Keep an eye on where government infrastructure dollars are flowing. Both major parties are proposing big spends to support housing – for example, the Coalition has flagged a $5 billion fund for infrastructure around new housing estates to help boost supply. Major transport projects are underway in several cities (e.g. Melbourne’s Suburban Rail Loop, Sydney’s Metro expansions, Brisbane’s Olympics-related works). Strategic investors look to buy in areas that will benefit from new transport links or amenities before everyone else catches on. These projects can be game-changers for a suburb’s desirability and values over the medium term.

• Emerging opportunities: Despite high prices, there are still markets with upside potential. For instance, apartment rents are rising strongly and unit prices have lagged houses – some investors are now scouting quality apartments in inner-city locations for yield and eventual capital catch-up. Similarly, regional hubs with diversified economies (think Geelong, Newcastle, Townsville) offer a combination of affordable buy-in and growth drivers (universities, hospitals, industry) that pure coastal holiday towns might lack. As always, do your homework: look for population growth, job creation, and infrastructure as signals of a solid investment location.

Investor Tip of the Week

Rising Returns Pro Tip: Don’t try to time the market perfectly. If you have your finances ready and find a property that meets your criteria, it’s often better to act than to wait for the “perfect” price. With markets stabilising and interest rates likely to fall, well-chosen properties bought now could deliver solid gains over the next 5–10 years. Focus on the fundamentals – location, rental demand, and long-term growth drivers – and let time do the heavy lifting.

Rising Returns Takeaway

• Policy stability – Recent elections suggest no drastic changes to investor taxes in the near term. Regulatory tweaks (like foreign buyer rules and tenancy laws) are mostly aimed at easing housing pressures without upending the investment landscape. Stay informed, but no need to panic – use stable settings to your advantage.
• Watch those rates – The interest rate cycle is turning. If you’ve been on the sidelines, a window of opportunity is opening as borrowing power improves. Consider securing pre-approvals now and be ready to move as soon as the right deal appears.
• Quality beats quantity – The standout sales this month show that quality assets in great locations are virtually “bulletproof” – they hold value and attract demand in any market. Whether you’re buying a one-bedroom unit or a multi-million dollar mansion, stick to properties with enduring appeal (good transport, jobs, lifestyle, limited supply). These will weather cycles best.
• Think long term – Property investing is a marathon, not a sprint. Use these market updates to calibrate your strategy, but always keep your eyes on the horizon. Buy smart, add value where you can, and let compounding growth and rental income do the rest. Rising Returns is here to help you navigate each step of that journey – with no hype, just results.

We’ll be back next week with more insights.

Until then, keep investing smart.

Next Step: Speak With a Strategic Property Advisor

At Rising Returns we specialise in helping investors navigate market cycles with precision.

Whether you are planning your next portfolio move, assessing property purchases, or reviewing your buyer’s agency agreement, our team can help you make the right decisions in a fast shifting market.

📞 Call us now or book a strategy session online to take advantage of this new policy landscape before competition intensifies.