Why Australia’s 5% Deposit Scheme Is Helping Buyers — and Driving Prices Up

Australia’s expanded 5% Deposit Scheme has made it easier for first-home buyers to enter the market, but its impact varies sharply by location. Melbourne and Sydney offer relatively strong access to eligible homes due to higher price caps and better housing supply, while Queensland—particularly the Gold Coast—faces a shrinking pool of affordable options. Experts warn the scheme has fuelled demand without addressing supply shortages, contributing to rising prices, especially in Brisbane and coastal markets. While the policy has helped buyers purchase sooner, critics say it risks worsening affordability unless paired with meaningful housing supply reform.