The Property Council of Australia said Labor's policy to invest $10 billion towards building 100,000 new homes for first homebuyers, matched by an expansion of the First Home Guarantee Scheme, will bring Australia closer to its 1.2 million new home target and help make new homes more affordable for first homebuyers.
The delivery of 100,000 new homes for first homebuyers will include states and the private sector identifying suitable and shovel-ready projects and encourage states and territories to fast-track land release, upzoning and planning approvals. The $10 billion investment will comprise $2 billion in grants and $8 billion in zero-interest loans or equity investments.
The expansion of the First Home Guarantee Scheme will mean that every first home buyer will be eligible to buy a home with a five per cent deposit and avoid lenders mortgage insurance, guaranteed by the government, with no income caps or caps on places, from 1 January 2026.
Property Council Chief Executive Mike Zorbas welcomed the balance between supply-side investment and demand stimulus that both supports first home buyers and acts as a hedge against global uncertainty.
"This kind of generational investment is a game changer for new housing supply," Mr Zorbas said.
"100,000 new homes will be a big boost to our welcome and ambitious 1.2 million new homes target.
"We look forward to early industry involvement in the scheme design to make sure the benefits are maximised."
Mr Zorbas also welcomed the expansion of the Home Guarantee Scheme to support first home buyers entering the housing market.
"Bridging the deposit gap is a critical factor in getting more young Australians into their own homes, many of whom are otherwise watching their dreams of home ownership slipping away.
"With the average age of first home buyers in our capital cities approaching 40, this is an important measure."
The Property Council also noted:
• the Albanese government's existing $3 billion New Homes Bonus and $500 million Housing Support Program to support its welcome and ambitious National Housing Accord target of 1.2 million new homes
• recent tax changes to support the important build-to-rent sector, that will support the delivery of up to 80,000 new rentals, including up to 8,000 genuinely affordable rentals
• demand for new homes, especially apartments close to transport and existing infrastructure, boosts pre-sales and helps large scale new projects out of the ground
• maintaining confidence in the key consumer segments of the domestic economy has become significantly more important in the current period of global tariff fluctuations
• scheme design will need to be carefully reviewed on a regular basis from 1 July to ensure key housing markets do not overheat.
