Australia’s property boom continues as 110 suburbs remain within reach for first-home buyers under $40k deposits through the expanded Home Guarantee Scheme.
Paying less than $40,000 upfront to get into one of Australia’s booming property markets may sound far-fetched — but new data from PropTrack shows it’s possible under the First Home Guarantee (FHG) scheme.
An analysis of national home prices found 110 suburbs where values are surging yet eligible first-home buyers could secure a property with a deposit equivalent to 5% or less than $40,000.
The First Home Guarantee scheme enables first-home buyers to purchase with just a 5% deposit while avoiding lenders’ mortgage insurance (LMI). From Oct. 1, the program was expanded to remove income caps, increase price limits, and introduce unlimited places, dramatically broadening eligibility.
The change comes as Australia’s housing market remains red-hot, showing no signs of cooling. According to Cotality’s September Home Value Index (HVI), national dwelling values rose 2.2% over the quarter – equal to adding $18,215 to the median home price – with every capital city recording growth across monthly, quarterly and annual measures.
PropTrack senior economist Eleanor Creagh (pictured) said housing markets were likely to remain strong in the months ahead, supported by easier access and improving confidence.
“The October expansion of the Home Guarantee Scheme and removal of income caps will pull forward some first-home buyer demand by lowering the deposit hurdle,” she said.
PropTrack data revealed that all 110 suburbs on the list have median prices under $800,000, meaning a 5% deposit equals less than $40,000. These suburbs have recorded price increases of at least 20% over the past year, driven by strong demand from both first-home buyers and investors.
Most of these suburbs are located in Perth, Brisbane, and Adelaide, where prices have been rising rapidly over recent years. While the pace of growth has eased, analysts expect ongoing demand to sustain further price gains.
In Perth, first-home buyers can purchase a median-priced unit in Orelia for just $16,000 upfront, based on a 5% deposit on the suburb’s $320,000 median unit price.
Buyers could also secure homes in Mount Lawley, Inglewood or Mosman Park with deposits between $24,000 and $30,000.
In Brisbane’s Ipswich region, deposits of $30,000–$35,000 are enough for a median-priced house in suburbs like Woodend, Tivoli and North Booval, all of which have seen prices rise more than 20% over the past year.
A 5% deposit of about $35,000 would secure a unit in Newmarket or Windsor, while buyers with $25,000 could consider Slacks Creek or Caboolture units.
Caboolture real estate agent Matt Stone from First National Real Estate Moreton said the expanded scheme had sparked new buyer activity.
“It's definitely bringing more buyers to the open homes,” Stone said. “Even though prices are going up, we’re still very affordable."
In Darwin, the suburb of Berrimah recorded the fastest growth of any capital city, with its median house price jumping 42% to $355,000. Buyers could enter the market with an upfront deposit of just $17,750 under the First Home Guarantee.
In Adelaide, a first-home buyer in Elizabeth Grove could secure a typical house with a $26,175 deposit, based on a $523,000 median price after a 25% annual increase.
For those seeking coastal appeal, a $35,000 deposit would be enough for a median-priced unit in Glenelg, one of the city’s most popular beachside suburbs.
Belle Property Glenelg/Henley Beach principal David Ferrari said first-home buyers were entering the market quickly following the scheme’s expansion.
“A lot of first-home buyers in the market are thinking now is the time to buy,” Ferrari said.
“Buyers are realising there's going to be no respite. With a couple of interest rate drops, it's just going to keep the juggernaut of the Adelaide market ticking over.”
While the scheme is designed to make homeownership more attainable, analysts warn that greater demand may add further upward pressure to already hot markets.
“With stock on market constrained and new supply challenged, demand-side stimulus is likely to intensify competition,” Creagh said.
She added that the combination of record-low stock, improving confidence and rate cuts had already reignited momentum in the housing market.
“With enquiries per listing at a three-year high and search activity on realestate.com.au the strongest since late 2021, it’s clear more buyers are active,” Creagh said.
“The housing market is poised for further gains throughout spring, though the pace will vary across cities as momentum shifts.”
Cotality’s Executive Research Director Tim Lawless also warned that “there’s a clear disconnect between demand and supply,” noting that advertised listings are 18% below the five-year average while new housing approvals continue to fall.
For the full list of booming suburbs where homes can be secured with less than $40k upfront, read the realestate.com.au analysis.
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