Overview
- National home values rose 1.1% in October, the fastest monthly increase in more than two years, coinciding with the October 1 expansion of the 5% deposit guarantee.
- Dwellings within the scheme’s price caps gained 1.2% versus 1.0% for those above the caps, with houses under the caps up 1.3% and units up 1.0%.
- Localised gaps were larger in several areas, including Melbourne’s inner east (1.7% vs 0.4%), Perth inner (1.8% vs 0.8%), and parts of Sydney, Brisbane, Darwin, Geelong, the Central Coast and Wide Bay.
- The government reported 5,778 guarantees used in October—about one in ten sales—with 2,700 buyers newly eligible under the expanded rules.
- Cotality and other economists say a causal link to the scheme is unclear as rate cuts, constrained supply, lending buffers and investor demand drive the market, while Labor cites unpublished Treasury modelling of a modest 0.6% lift over six years and the Opposition blames the policy for near-term price rises.