Intensified Competition for Affordable Homes Between First Home Buyers and Investors

Surge in Demand Elevates Prices in Entry-Level Property Market

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The Australian property market is witnessing heightened competition between first home buyers and investors, particularly for affordable homes.

Recent data indicates that both groups are increasingly targeting similar entry-level properties, leading to a surge in demand and subsequent price increases.

The Australian Bureau of Statistics reported a 6.8% rise in first home buyer loans during the December quarter of 2025, coinciding with a 5.5% increase in investor loans. This simultaneous uptick suggests that both demographics are vying for the same segment of the market.

For first home buyers, this intensified competition underscores the importance of thorough market research, financial preparedness, and exploring various financing options to enhance their purchasing power in a competitive landscape.

Published:Thursday, 23rd Apr 2026
Author: Paige Estritori

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Loan-to-Value Ratio (LTV):
A ratio that compares the value of the loan to the market value of the property securing the loan.

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