What Labor’s re-election means for property investors in 2025
With the Labor government back in office, its housing agenda is gathering momentum. While much of the focus has been on helping first home buyers – from 100,000 new builds to the expanded Home Guarantee Scheme – these measures will likely have broader impacts. For property investors, they signal a shifting landscape of demand, supply and – most importantly – opportunity.
More buyers, fewer homes
Schemes allowing Australians to buy with just a 5% deposit are expected to push more buyers into the market. However, construction is lagging behind. According to the Australian Bureau of Statistics (ABS), building approvals fell 8.8% in March from February – with private dwellings excluding houses dropping 15.1% and private sector houses down 4.5%.
When supply is constrained, prices and rents often rise. Even those who qualify for assistance may struggle to secure homes quickly – meaning tight rental conditions are set to continue in many locations.
Capital growth remains likely
Cotality’s (formerly CoreLogic) latest Quarterly Rental Review shows national vacancy rates tightened to 1.6% in March 2025 – down from 2.0% in December – pointing to consistent demand.
While performance varies across regions, the Review highlights that well-located properties in high-demand areas still have strong growth potential. Capital growth is particularly likely where population growth, limited housing supply and infrastructure investment converge.
For investors, this means opportunities still exist – but success depends on choosing the right markets.
Rental sector could favour individuals
Labor’s support for Build to Rent projects may ease pressures in some cities, but large developments won’t reach every tenant. Individual investors can still meet demand in outer metro and regional markets. Restrictions on foreign buyers purchasing existing homes may also ease local competition.