Hundreds more suburbs will become available for first-home buyers thanks to a major change designed to help people get into the market.
Property price limits for the federal government’s Home Guarantee Scheme will be lifted across most of Australia, significantly increasing the number of suburbs first-home buyers can target.
Under the scheme, buyers can purchase their first home with as little as a 5% deposit without the need to pay Lenders’ Mortgage Insurance.
But from October 1, the scheme’s price caps will be lifted across most markets, reflecting the increase in property prices in recent years.
Income caps will also be removed and the scheme will have unlimited places available under the changes announced last week.
First-home buyers purchasing under the scheme will be able to spend up to $1.5 million in Sydney, $1 million in Brisbane and Canberra, $950,000 in Melbourne, $900,000 in Adelaide, $850,000 in Perth and $700,000 in Hobart.
Home Guarantee property price caps to increase from October 2025
| Current property price cap | Property price gap effective 1 October 2025 | |
| Sydney | $900,000 | $1,500,000 |
| Melbourne | $800,000 | $950,000 |
| Brisbane | $700,000 | $1,000,000 |
| Perth | $600,000 | $850,000 |
| Adelaide | $600,000 | $900,000 |
| Hobart | $600,000 | $700,000 |
| Canberra | $750,000 | $1,000,000 |
| Regional NSW | $750,000 | $800,000 |
| Regional Victoria | $650,000 | $650,000 |
| Regional Queensland | $550,000 | $700,000 |
| Regional WA | $450,000 | $600,000 |
| Regional SA | $450,000 | $500,000 |
| Regional Tasmania | $450,000 | $550,000 |
The most significant price cap increase was in Sydney, where the cap increased by 67%. Price limits will increase by 50% in Adelaide, 43% in Brisbane, 42% in Perth, 33% in Canberra.
Melbourne’s price cap will rise by 19%, while Hobart’s will be lifted by 17%, reflecting the smaller rise in prices in these cities in recent years.
Regional centres including the Illawarra, Newcastle and Lake Macquarie in NSW, Geelong in Victoria, and the Gold Coast and Sunshine Coast in Queensland will also see their price caps rise to the same level as their respective capital cities.
More suburbs now available to first-home buyers
The scheme’s current price caps mean that based on median prices, only a small proportion of suburbs were realistically available to first-home buyers looking for a house, especially in pricey markets like Sydney.
It’s a major bugbear for buyers frustrated by the lack of options under the limits imposed by the scheme, especially in traditionally-affordable areas where prices have shot up in recent years as a result of higher levels of demand.
REA Group executive manager of economics Angus Moore said expanding the scheme would help more first-home buyers get into the market, while the higher price caps would help bring more homes into eligibility.
“Uncapping the number of places almost surely will see more first-time buyers using the scheme,” he said.
“While first-home buyers are a reasonably small part of the market overall, we may see bigger effects in the price brackets and areas where first-home buyers are particularly concentrated.”
The view from 5/118a Kirribilli Avenue, Kirribilli, which sold for $1.035 million – well under the new Home Guarantee Scheme cap for Sydney. Picture: realestate.com.au/sold
Analysis of PropTrack data shows that there are dozens of in-demand suburbs where median prices sit between the old and new price caps, meaning these suburbs will be opened up to more first-home buyers from October 1.
The changes mean first-home buyers purchasing under the scheme could potentially buy into high-demand and pricier suburbs such as Kirribilli in Sydney, Toorak in Melbourne and Paddington in Brisbane, provided they’re looking for an apartment rather than a house, that is.
The median price is the midpoint of all property sales in the past year, meaning half of properties sold below and half above. It gives a good indication of typical property prices in a suburb.
The list of suburbs is ranked by enquiries per listing — a measure used to determine the level of demand from buyers — to determine the most sought-after suburbs now unlocked for first-home buyers.
Most in-demand Sydney suburbs under $1.5 million Home Guarantee cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | Werrington | $994,500 | 150 |
| 2 | St Marys | $990,000 | 144 |
| 3 | Rooty Hill | $1,000,000 | 111 |
| 4 | Lansvale | $1,150,000 | 109 |
| 5 | Plumpton | $967,500 | 107 |
| 6 | Colyton | $970,000 | 104 |
| 7 | North St Marys | $950,000 | 103 |
| 8 | St Johns Park | $1,230,000 | 102 |
| 9 | Claremont Meadows | $1,050,000 | 102 |
| 10 | Mount Druitt | $1,015,000 | 101 |
| Units | |||
| 1 | Kirribilli | $1,470,000 | 101 |
| 2 | Coogee | $1,450,500 | 84 |
| 3 | Crows Nest | $1,075,000 | 83 |
| 4 | McMahons Point | $1,325,000 | 82 |
| 5 | Randwick | $1,200,000 | 81 |
| 6 | Ramsgate Beach | $1,085,000 | 80 |
| 7 | Vaucluse | $1,457,500 | 77 |
| 8 | Bondi Beach | $1,400,000 | 76 |
| 9 | Five Dock | $1,110,000 | 76 |
| 10 | Wollstonecraft | $1,300,000 | 72 |
In Sydney, the most in-demand suburbs with house buyers had prices much more affordable than the city’s $1.58 million median house price, and were found largely in the city’s west.
Mr Moore said the higher cap would mean two thirds of homes across Sydney would be eligible – up from less than a third of homes under the existing cap.
Under the new caps, buyers would be able to purchase a median-priced house in Rooty Hill ($1 million), St Johns Park ($1.23 million) and Mount Druitt ($1.015 million) – suburbs prized for their relatively affordability, but generally not an option under the lower existing caps.
Houses on the market in these suburbs received more than 100 enquiries on average, indicating elevated interest in properties at the more affordable end of the market.
This five-bedroom house in Rooty Hill in Sydney's west recently sold for just under $1.2 million in July. It would now be eligible for the expanded Home Guarantee Scheme. Picture: realestate.com.au/sold
Real estate agent and Ray White United Group director Peter Diamantidis said the existing caps were too low for purchasing a freestanding house, even in some of Sydney’s most affordable suburbs.
“$900,000 for a house? No chance,” he said. “But for a townhouse or unit, there’s big opportunities out our way.”
He said conditions were already heating up in popular western Sydney suburbs such as St Marys, but higher price caps would encourage more first-home buyers to get into the market, particularly in suburbs just a little pricier than the existing caps.
“At the moment, we’re running out of properties,” he said. “We’re getting more buyers coming to the area, and [the higher caps] might push prices even higher.”
It’s a very different situation in the unit market, with the higher $1.5 million cap allowing buyers to purchase with government assistance in several affluent waterfront suburbs such as Kirribili, Coogee, McMahons Point and Bondi Beach, where units are highly sought-after.
Most of the Sydney suburbs with median unit prices between $900,000 and $1.5 million were found in the inner and eastern suburbs, north shore or northern beaches.
Most in-demand Melbourne suburbs under $950,000 Home Guarantee cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | Mill Park | $808,800 | 46 |
| 2 | Endeavour Hills | $800,000 | 44 |
| 3 | Ferntree Gully | $880,000 | 41 |
| 4 | Berwick | $881,500 | 40 |
| 5 | Narre Warren South | $815,000 | 40 |
| 6 | Keilor Downs | $807,000 | 40 |
| 7 | Boronia | $863,350 | 39 |
| 8 | Heidelberg West | $800,800 | 39 |
| 9 | Lyndhurst | $935,000 | 38 |
| 10 | Upwey | $856,000 | 36 |
| Units | |||
| 1 | Epping | $800,000 | 47 |
| 2 | Oakleigh East | $860,000 | 44 |
| 3 | Burwood | $888,000 | 41 |
| 4 | Vermont | $909,444 | 37 |
| 5 | Mulgrave | $827,500 | 37 |
| 6 | Glen Waverley | $912,500 | 33 |
| 7 | Blackburn North | $864,600 | 31 |
| 8 | Balwyn | $800,000 | 31 |
| 9 | Toorak | $802,500 | 30 |
| 10 | Camberwell | $861,000 | 30 |
In Melbourne, suburbs such as Endeavour Hills, Narre Warren South and Berwick in the outer east were among the most in-demand in the city, but houses mostly sold for prices exceeding the existing cap of $800,000.
The higher price cap of $950,000 made the scheme appealing to more first-home buyers, according to real estate agent and Area Specialist Endeavour Hills director Jay Giblett.
“Buyers are talking more about it and are getting excited about it,” he said. “Some people have said they’re going to wait for it to begin [before buying].”
A median-priced home in Endeavour Hills, a popular suburb for first-home buyers in Melbourne's outer east, would now qualify for the expanded Home Guarantee Scheme. Picture: realestate.com.au/sold
He said the expansion of the scheme, as well as recent rate cuts, had increased demand in the area, which was popular among first-home buyers.
“The numbers at open homes have gone through the roof,” he said. “Buyer confidence is certainly there.”
The expanded scheme could give more unit buyers access to pricey suburbs such as Toorak and Balwyn, where median unit prices sit just above the current price caps.
Custom Call to ActionReal estate agent Brandon Whitta of Marshall White said the expanded caps would help some first-home buyers who had their eyes set on Toorak.
“For young professional buyers who work nearby, the apartment space is a great first step.”
However many first-home buyers in Toorak were locals who already had financial support from family, he said.
Most in-demand Brisbane suburbs under $950,000 Home Guarantee Scheme cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | Redbank Plains | $700,500 | 112 |
| 2 | Browns Plains | $802,500 | 111 |
| 3 | Slacks Creek | $743,500 | 107 |
| 4 | Loganlea | $780,000 | 105 |
| 5 | Waterford West | $720,000 | 104 |
| 6 | Darra | $950,000 | 104 |
| 7 | Tanah Merah | $900,000 | 104 |
| 8 | Beenleigh | $715,000 | 99 |
| 9 | Loganholme | $792,500 | 99 |
| 10 | Bald Hills | $850,000 | 98 |
| Units | |||
| 1 | Paddington | $850,000 | 85 |
| 2 | Newmarket | $725,000 | 85 |
| 3 | Windsor | $700,750 | 84 |
| 4 | Wishart | $780,000 | 80 |
| 5 | Aspley | $780,000 | 77 |
| 6 | Eight Mile Plains | $725,000 | 77 |
| 7 | Greenslopes | $760,000 | 76 |
| 8 | Ashgrove | $805,000 | 76 |
| 9 | Alderley | $700,000 | 75 |
| 10 | Kangaroo Point | $767,500 | 72 |
Apartment buyers will also be able to access some of Brisbane’s most sought-after inner suburbs, where prices are above the existing cap of $700,000, but below the new cap of $1 million.
That means Paddington, Newmarket and Windsor could all be on the radar for more first-home buyers looking to buy a unit with the aid of the home guarantee scheme.
This four-bedroom house in Darra sold for $950,000 - the suburb's median price. It would qualify for the upsized cap for Brisbane homes under the Home Guarantee Scheme. Picture: realestate.com.au/sold
Much like the other capitals, the high-demand Brisbane suburbs now unlocked for house buyers were at the more affordable end of the market, but the existing price caps were too low for a median-priced house to qualify.
From October 1, first-home buyers in Browns Plains, Slacks Creek and Darra will be able to buy a median-priced house using the scheme, something previously not possible due to prices typically exceeding the $700,000 cap.
Most in-demand Perth suburbs under $850,000 Home Guarantee cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | Balcatta | $845,000 | 74 |
| 2 | Osborne Park | $790,000 | 68 |
| 3 | Carlisle | $820,000 | 64 |
| 4 | Bentley | $751,000 | 61 |
| 5 | Queens Park | $733,750 | 57 |
| 6 | Westminster | $659,000 | 57 |
| 7 | Maddington | $625,000 | 56 |
| 8 | Kenwick | $680,000 | 56 |
| 9 | Martin | $850,000 | 55 |
| 10 | Midland | $600,000 | 55 |
| Units | |||
| 1 | Fremantle | $610,000 | 56 |
| 2 | Palmyra | $667,000 | 52 |
| 3 | Doubleview | $740,000 | 50 |
| 4 | Attadale | $645,000 | 50 |
| 5 | Shenton Park | $625,000 | 48 |
| 6 | Leederville | $675,000 | 48 |
| 7 | Bentley | $600,000 | 47 |
| 8 | Como | $737,000 | 46 |
| 9 | North Coogee | $710,022 | 46 |
| 10 | Innaloo | $615,000 | 43 |
Perth first-home buyers looking at houses could look at Balcatta, Bentley and Queens Park, where median prices between the current and new caps.
Buyers seeking a unit under Perth’s expanded $850,000 cap can add Fremantle, Como, Leederville and Shenton Park to their list.
Most in-demand Adelaide suburbs under $900,000 Home Guarantee cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | Port Willunga | $787,500 | 65 |
| 2 | Woodville West | $852,750 | 63 |
| 3 | Salisbury | $671,000 | 62 |
| 4 | Lewiston | $855,500 | 62 |
| 5 | Christies Beach | $762,500 | 61 |
| 6 | Gilles Plains | $795,000 | 61 |
| 7 | Christie Downs | $650,000 | 60 |
| 8 | Dernancourt | $890,000 | 58 |
| 9 | Dover Gardens | $880,000 | 57 |
| 10 | Park Holme | $886,935 | 56 |
| Units | |||
| 1 | Henley Beach | $660,000 | 83 |
| 2 | Norwood | $795,000 | 53 |
| 3 | Campbelltown | $620,000 | 53 |
| 4 | North Adelaide | $690,000 | 50 |
| 5 | Magill | $635,000 | 49 |
| 6 | Glenelg | $635,000 | 46 |
| 7 | Glenelg East | $655,000 | 43 |
| 8 | Brompton | $700,000 | 41 |
| 9 | Parkside | $705,000 | 39 |
| 10 | West Lakes | $740,000 | 39 |
The upsized $900,000 cap for Adelaide would allow unit buyers to look at Glenelg or North Adelaide, while first-home buyers seeking a house could look at Woodville West, Dernancourt or Salisbury.
Typical units in Battery Point in inner Hobart would fall under the city's higher Home Guarantee price cap. Picture: realestate.com.au/buy
Hobart first-home buyers looking to take advantage of the scheme can now go house-hunting in Moonah or Kingston, while apartment buyers could look in Sandy Bay and Battery Point.
Most in-demand Hobart suburbs under $700,000 Home Guarantee cap
| Suburb | Median price | Enquiries per listing | |
| Houses | |||
| 1 | West Moonah | $656,000 | 34 |
| 2 | Mornington | $607,500 | 31 |
| 3 | Moonah | $635,000 | 30 |
| 4 | Kingston | $700,000 | 28 |
| 5 | Rosetta | $622,500 | 28 |
| 6 | Austins Ferry | $605,000 | 27 |
| 7 | Lutana | $615,000 | 25 |
| 8 | Midway Point | $615,000 | 23 |
| 9 | Rokeby | $600,000 | 22 |
| 10 | Sorell | $660,000 | 20 |
| Units | |||
| 1 | Hobart | $890,000 | 28 |
| 2 | Battery Point | $750,000 | 26 |
| 3 | Sandy Bay | $650,000 | 25 |
| 4 | North Hobart | $750,000 | 22 |
| 5 | Howrah | $626,000 | 20 |
| 6 | Blackmans Bay | $620,000 | 17 |
The higher $1 million cap in Canberra unlocks several southern and western suburbs, including Kambah, Wanniassa and Holt.
Most in-demand Canberra suburbs under $1 million Home Guarantee cap
| Houses | Suburb | Median price | Enquiries per listing |
| 1 | Wanniassa | $862,500 | 23 |
| 2 | Isabella Plains | $840,000 | 23 |
| 3 | Ngunnawal | $760,000 | 23 |
| 4 | Richardson | $770,000 | 23 |
| 5 | Waramanga | $882,500 | 22 |
| 6 | Coombs | $758,000 | 22 |
| 7 | Holt | $822,000 | 22 |
| 8 | Evatt | $875,000 | 22 |
| 9 | Kambah | $865,500 | 21 |
| 10 | Latham | $817,500 | 21 |
| Units | |||
| 1 | Campbell | $760,000 | 10 |
| 2 | Forrest | $765,000 | 12 |
The price cap in the Northern Territory will remain at $600,000. Median house prices in about half of Darwin suburbs sit under this figure, while only one suburb, Bayview, has a median unit price that’s higher.
Whether this cap is sufficient for first-home buyers trying to get into the market remains to be seen, given Darwin is now the nation’s strongest capital city for home price growth.
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