Lower-End Growth In Prime Markets
New data shows stronger price growth in lower-value homes sitting just under the new 5% deposit scheme price caps, particularly inside traditionally high-end markets.
In Melbourne’s Inner East, homes below the $950,000 cap rose 1.7% in October, well ahead of the 0.4% gain for more expensive properties.
Similar trends appeared across Sydney’s prestige markets, with Northern Beaches homes under $1.5 million lifting 0.9% while higher-end values were flat.
Regional centres are also featuring, with Geelong and the Central Coast ranking among the top performers, both aligned with higher capital city-style caps.
Darwin made the list too, although its uplift is more likely tied to rising investor activity, with most demand still targeting relatively affordable stock.
While properties below the caps broadly outperformed in October, the pattern had already been emerging prior to the recent expansion of the 5% deposit scheme, making a direct causal link unclear.
Even so, the data reinforces a key theme: competitive demand and tight supply are driving the strongest gains at the lower to middle end of otherwise expensive markets.
