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First-Home Guarantee Accounts for One in Ten October Sales as Labor Defends Price Impact

Labor cites modelling that predicts only a small long‑term price effect from the expansion.

Overview

  • In October, 5,778 homes were purchased using the scheme, roughly 10% of about 57,000 sales, including around 2,700 newly eligible buyers.
  • The expansion opened access to all income levels, created unlimited places, and raised jurisdictional price caps, with ceilings reported up to about $1.5 million in Sydney.
  • Labor says uptake is tracking Treasury’s forecast of roughly 70,000 guarantees over the next year, with modelling estimating a 0.6% price increase after six years.
  • Monthly price readings diverged, with PropTrack reporting a 0.6% rise and Cotality 1.1% in October, as analysts point to incentives, recent rate cuts, tight supply and seasonal demand.
  • The Coalition’s Andrew Bragg blames the expanded guarantee for October’s rise, and the Senate is still seeking Treasury’s underlying modelling documents first ordered in July.