With the election now behind us and a May rate cut almost certain, property market activity has surged as buyers and sellers rush to capitalise on newfound certainty.
The Australian property market has roared back to life following Labor's decisive election victory, with both buyers and sellers showing renewed confidence as political uncertainty fades. Property agents across the country report a significant uptick in activity during the days immediately following the election, with buyer inquiries jumping dramatically and more vendors preparing to list. This surge comes as markets price in a near-certain interest rate cut on May 20, creating ideal conditions for property investors to make their move before competition intensifies further.
Experienced property investor Nicky Rajani has fast-tracked his plans to purchase a fifth investment property in the coming weeks: "I feel a sense of urgency because I think timing is essential for these property acquisitions. Now that the election is over, I think there will be more buyers in the coming months, especially if the RBA cuts rates this month." This sentiment reflects the broader market dynamic, where investors recognise the narrow window of opportunity before Labor's expanded housing policies, combined with rate cuts, potentially drive property values significantly higher.
"With rate cuts ahead, we’re seeing investors starting to move quickly in affordable markets like Melbourne and it’s incredible to see that market record an auction clearance rate over 70% during an election weekend. It’s even more impressive given over 600 auctions have reported results in Melbourne, which for context is over half the national volume. " notes Godfrey Dinh, CEO of Futurerent.
Key Highlights
- Buyer inquiries have spiked dramatically post-election, with one buyer's agency reporting increases of 30% on Sunday, 50% on Monday, and another 50% on Tuesday
- Auction clearance rates have jumped to 70.1% across combined capitals, the highest level in four weeks
- Melbourne recorded a preliminary clearance rate of 74.4%, its strongest result in two years
- The RBA is widely expected to cut the cash rate on May 20, with both headline and trimmed mean inflation now within the target band
- Labor's expansive housing policies are predicted by analysts to drive property prices up by 8-15% once implemented
- Commonwealth Bank has pre-emptively cut its digital variable interest rate to 5.84%, with experts predicting rates under 5.5% within weeks
Post-Election Market Sentiment Surges
The decisive Labor victory on May 3 has delivered exactly what the property market craved—certainty. Let's take a closer look at how real estate professionals are reporting an almost immediate response, with activity levels rising sharply in the days following the election.
Buyer's agent Cate Bakos observed a remarkable spike in interest: "It's almost an immediate reaction to the election result. Inquiries rose sharply compared to the previous week. They jumped 30 per cent on Sunday, they climbed by another 50 per cent on Monday and were up another 50 per cent today."
This sentiment is echoed by BresicWhitney CEO Thomas McGlynn, who noted that listing volumes have already started increasing: "I think we'll probably see that increase again over the course of the next week, so we're already seeing an impact of the election, and the fact that Labor is forming a majority government, rather than minority government, brings stability to the property market." Looking ahead, he added, "If we see rates fall in May, which is a strong possibility, we may be in for quite a busy winter period."
The certainty factor appears crucial for both buyers and sellers. As Ray White Upper North Shore agent Jessica Cao explained: "Last month, when we were talking to vendors, they were telling us that they wanted to see how the election goes, and if there's a rate cut decision this month."
This enthusiasm is something we're seeing across the board. Arjun Paliwal, head of research at buyer's agency InvestorKit, reported that "We've already seen a 15 per cent uplift on our daily consultation rates, just in recent days alone. It's been crazy. I think people are now welcoming that stability, so we're expecting inquiries to pick up even faster."
Auction Markets Strengthen Significantly
What does the auction data tell us about where the market is heading?
The first week of May saw a substantial improvement in auction results, with the preliminary clearance rate rising to 70.1%—up 5.9 percentage points from the previous week's 64.2% (which revised down to 60.8% on final numbers). This represents the highest success rate in four weeks.
National auction clearance rates

The number of homes going to auction also bounced back strongly, with 1,643 properties going under the hammer across the combined capitals, 567 more than the week prior. While this figure remains below the 2,202 auctions held during the same week last year due to the federal election, it demonstrates the market's underlying resilience.
Melbourne topped the performance charts with a preliminary success rate of 74.4%, its highest since the first week of June two years ago and 6.8 percentage points above the previous week's result. Sydney recorded a preliminary rate of 69.4%, its strongest performance in seven weeks.
SQM Research founder Louis Christopher anticipates this trend will continue: "I'm anticipating that volumes are going to bounce back this coming week and so will auction clearance rates. With a decisive victory from the Labor government, that's going to improve the confidence in the housing market. Confidence, perhaps, may have sapped away if it was a minority government."
Looking ahead, approximately 1,620 homes are scheduled for auction this week, dipping slightly to around 1,580 next week, reflecting the typical seasonal pattern of reduced auction activity during winter months before a spring rebound.
Rate Cut Certainty Adds Fuel to Market Momentum
With both headline and trimmed mean inflation finally back inside the Reserve Bank of Australia's target band for the first time in four years, the stage is set for a May rate cut when the RBA meets on May 19-20. This anticipated drop in interest rates is further boosting buyer confidence and market activity.
"Lower interest rates don't just improve the maths for investors – they fundamentally shift market sentiment. As we approach the 20 May RBA meeting, we're already seeing a step change in the level of urgency investors are moving with as they aim to get ahead of the rest of the market" explains Godfrey Dinh, CEO of Futurerent.
The money markets (where banks and financial institutions trade) are now expecting several rate cuts throughout 2025, with economists at major institutions forecasting multiple reductions:
Citi economist Faraz Syed predicts cuts in May, August, September and November, bringing the cash rate down to 3.1% by year-end. This view aligns with projections from other major institutions including JPMorgan and Morgan Stanley, establishing a common expectation of 3-4 cuts this year.
We're already seeing this anticipation spark competition among lenders, with Commonwealth Bank pre-emptively dropping its digital variable interest rate to 5.84%—matching recent moves by Westpac and ANZ. NAB currently remains higher at 6.19%.
Canstar's Sally Tindall observed that "CBA has dialled up the heat in the mortgage turf wars by matching two of its biggest competitors with a rate of 5.84 per cent. This move is fantastic for competition because when Australia's biggest bank cuts its home loan rates it forces other lenders to sit up and take stock of their own."
For property investors, this outlook creates improved borrowing conditions. Tindall predicts that "with the prospect of further cash rate cuts still firmly on the cards, potentially as soon as 20 May, variable rates could go well under 5.50 per cent in a matter of weeks." These reduced borrowing costs will enhance investor borrowing capacity and potentially speed up market growth even further.
Labor's Housing Policies Set to Drive Growth
Labor's comprehensive housing agenda, following their decisive election victory, is expected to significantly impact the property market. For investors looking to understand the full implications, we've published a detailed analysis: Labor's housing policies 2025: What property investors need to know.
SQM Research managing director Louis Christopher forecasts prices rising 8-15% once these policies are implemented, primarily through expanded buyer incentives that boost demand without matching supply increases.
"Labor's expanded First Home Guarantee Scheme will likely create strong price growth in first-home buyer price points from January 2026. Smart investors are already identifying these target markets and positioning themselves before this significant policy shift brings a wave of new buyers into the market," notes Godfrey Dinh, CEO of Futurerent.
Industry experts point out that these policies primarily boost demand rather than addressing supply constraints. This combination historically leads to price appreciation - a positive outcome for those who already own investment properties, but not necessarily addressing the affordability challenges.
Supply Constraints Persist Despite Approval Uptick
Let's examine why housing supply remains such a challenge across Australia, despite efforts to boost construction. More than 35,000 approved apartments and townhouses are sitting unbuilt in Western Sydney alone—an area expected to absorb more than half of NSW's forecast population growth to 2041.
"The housing supply challenge remains one of the most powerful factors supporting Australian property values. Despite all the talk about fixing the housing crisis, the reality is that building costs and approval bottlenecks continue to keep new supply well below demand levels across our major growth corridors," explains Godfrey Dinh, CEO of Futurerent.
According to the Department of Planning, Western Sydney needs approximately 24,000 new dwellings annually to service projected population growth, yet only 5,405 homes are currently under construction—just 22.5% of annual demand.
The latest building figures show a near-9% month-on-month decline in new dwelling approvals to a seasonally adjusted 15,200 homes in March—down from 16,683 in February and the weakest performance in six months. While quarterly figures show some improvement, with approvals for January through March rising 5.7% to 48,621 (above the 5-year average of 47,280), this remains well below the 20,000 monthly approvals needed to meet national housing targets.
Property Council of Australia's Matthew Kandelaars highlighted this shortfall, noting that the monthly total of 15,220 approvals falls significantly short of the pace required to build 1.2 million homes by 2029.
Why is this happening? Industry experts point to escalating costs rather than developers holding onto land. Ray White Commercial Western Sydney's Peter Vines explained: "While construction costs had increased exponentially, home prices hadn't risen at the same rate, which was hugely problematic." He added with stark assessment of market conditions: "We've starved the market for a long time, it really is starved. And so at some point, you can't just keep undersupplying and things turn and then they run. They talk about the housing crisis… it's just going to get worse."
This sentiment is echoed by Rob Furolo, executive manager at builder developer company Deicorp, who said the company would be "thrilled" to deliver more apartments in Western Sydney given the strong demand, but "the cost to build was more than the price it could sell them for." He emphasised the historical significance of the current situation: "Deicorp has been around for more than 25 years and there has never been more need to build more homes than there is today."
In Victoria, we're seeing similar cost pressures. The latest ABS data shows Victoria's average house build now costs $517,000 — up from $484,000 a year ago and far above the $363,000 typical cost in March 2020, just before the pandemic.
Meanwhile, the average price of presales and under-construction projects in Sydney, Melbourne, Perth, Brisbane and the Gold Coast rose 34 per cent in the year to the December quarter, according to the latest figures from Urbis.
For investors, this ongoing supply-demand imbalance creates favourable growth conditions, as limited new stock helps maintain upward pressure on both prices and rents.
First-Home Buyers Set to Drive Market Segments
Labor's housing policies include an expanded First Home Guarantee Scheme which is expected to significantly impact specific market segments, with Head of Research at Cotality (formerly CoreLogic), Eliza Owen, anticipating strong uptake once implemented: "Once we see the expansion of the 5 per cent home guarantee scheme, I think that will have strong take up and increase the amount of first-time buyer participation in the market."
Owen pointed out that the proportion of 25- to 34-year-olds purchasing homes has been trending lower over time, suggesting there's significant pent-up demand that could be unleashed by the expanded scheme.
We're already seeing market experts focus intently on the potential impact of these first-home buyer incentives, with analysts stating bluntly that "First home buyers armed with 5 per cent deposits are going to put a rocket under demand in first-home buyer zone across the country. House prices are going to jump." The government's signature first home guarantee is widely expected to create a significant demand spike from January 2026 when it takes full effect.
Investors are starting to target areas likely to benefit from this surge in first-home buyer activity, before Labor's expanded scheme takes full effect in January 2026. "Labor's expanded First Home Guarantee Scheme will likely create strong price growth in first-home buyer price points from January 2026. Many investors are already identifying these target markets and positioning themselves before this significant policy shift brings a wave of new buyers into the market," notes Godfrey Dinh, CEO of Futurerent.
Strategic Implications for Property Investors
So what does all this mean for you? The current market environment presents several key strategic considerations worth thinking about:
- Policy Timing: With both the election behind us and rate cuts ahead, securing properties before Labor's expanded housing policies take full effect could provide significant upside. The window between now and January 2026 (when the expanded First Home Guarantee Scheme launches) represents a strategic window to get ahead of the competition.
- Rate Cut Positioning: The anticipated May 20 rate cut and likely further reductions throughout 2025 will progressively improve borrowing capacity. By acting before these cuts fully impact market sentiment, you may secure better entry prices than those who wait.
- Supply-Constrained Areas: With housing production remaining well below demand requirements (only 22.5% of annual need in Western Sydney), properties in established areas with limited development potential are likely to continue commanding premiums. We're seeing this pattern play out across multiple states.
- Interest Rate Negotiation: With major banks pre-emptively cutting rates and over 35 lenders now offering variable home loan rates under 5.75%, it's worth considering whether you should renegotiate your current financing arrangements to improve your cash flow position.
Looking Ahead: A Perfect Storm for Property Growth
We're witnessing the Australian property market at a pivotal moment, with multiple factors aligning to create exceptionally favourable conditions for investors. The certainty provided by Labor's decisive election victory, combined with the RBA's imminent rate-cutting cycle and significant housing policy initiatives, establishes a foundation for sustained price growth throughout 2025.
As auction clearance rates strengthen, buyer inquiries surge, and lenders compete to offer increasingly attractive financing options, the market is showing clear signs of renewed momentum. At the same time, the persistent supply constraints—highlighted by the tens of thousands of approved yet unbuilt dwellings across key growth corridors—reinforce the fundamental supply-demand imbalance that has historically driven Australian property values higher.
For you as a strategic investor, this confluence of factors presents a rare opportunity to position your portfolio ahead of what analysts predict could be price growth of 8-15% once Labor's housing policies take full effect. By acting decisively in the current environment, before lower interest rates and expanded first-home buyer schemes fully impact market dynamics, you may capture both improved affordability and subsequent capital appreciation as these powerful stimulatory factors flow through the economy.
"We're entering what could be a golden period for property investors. The current window – with rate cuts on the horizon but not yet fully reflected in prices – offers a rare chance to secure properties before the expected surge that analysts are forecasting materialises," says Godfrey Dinh, CEO of Futurerent.
How Futurerent Can Help
As market activity accelerates following the election and in anticipation of the May 20 rate decision, we're seeing many investors positioning themselves to capitalise on these emerging opportunities. Moving quickly in the current environment requires both decisiveness and financial agility.
Futurerent enables you as a property investor to:
- Access up to $100,000 per property (maximum $500,000 across your portfolio)
- Move swiftly to secure properties before competition intensifies following the anticipated May rate cut
- Fund strategic renovations to maximise appeal in a market with increasing first-home buyer participation
- Maintain financial flexibility while navigating evolving market conditions
Contact our team today to discuss how we can support your investment strategy and help you capitalise on the current window of opportunity before Labor's housing policies and rate cuts fully impact market dynamics.