After a resounding win at the polls this month, the newly re-elected Labor federal government is back on deck with a familiar housing agenda.

While the party has a longstanding goal of increasing housing supply, some experts say Labor's policies look set to continue fostering property price growth around Australia. 

Find out what the latest election result means for the months ahead.

An election with housing policy at the forefront

Housing was a key talking point for both major parties this election, with worsening affordability becoming a major national issue in recent years. 

Labor campaigned on a commitment to spend $10 billion on 100,000 newly built homes reserved for first home buyers in an effort to relieve supply-side pressures. 

The Coalition offered an alternative solution to the supply issue, pledging $5 billion to fund housing infrastructure like sewerage and power in an effort to facilitate new homes being built more rapidly.. 

Those supply-side initiatives tend to be slow-moving, though, and for the most part, both parties' policies focused on the demand side, taking aim at assisting first home buyers. 

Labor proposed to expand its 5 per cent deposit scheme, allowing buyers to break into the market with smaller savings, as well as reintroducing its 'Help to Buy' shared equity scheme, allowing buyers to co-purchase a home with the government. 

Meanwhile, the Coalition campaigned on easier access to borrowing, tax-deductible mortgage interest for first home buyers, and, for a period, the option to dip into superannuation to boost a home deposit. 

Neither party campaigned on changes to investor tax settings like negative gearing or CGT concessions — divisive policies that have been shelved since Labor’s 2019 defeat.

Although housing affordability was a hot-button topic throughout the election, independent economist Saul Eslake told the ABC that preserving existing homeowners' wealth is a political reality both major parties need to face.

"[Homeowners] want governments to do things that keep house prices going up, and as both major political party leaders have said, they want house prices to keep going up," he said.

Now that Labor are in, will home prices continue to rise? 

Elections typically put a dampener on our property markets as some buyers and sellers sit on the fence with a wait-and-see approach. 

The returning government now brings a 'business as usual' mindset to the market. There won't be any immediate changes to investor taxes or other property laws, and continuity often leads to a sense of post-election confidence. 

As SQM Research managing director Louis Christopher told the AFR, either party forming government would be likely to put upward pressure on property prices. 

"They’re both inflationary," he said of the two parties' policies, adding that Labor's propositions would probably drive home values even higher than the Coalition's.

"You need to model this stuff up, but for a finger-into-the-wind guess, you would see prices rise 8 to 15 per cent, 12 months after the polices were enacted."

Ray White Group's managing director, Dan White, agreed that home values will get a boost, adding that "The Labor policy is far more broad-based" and "it will impact prices more."

With Labor's 5 per cent deposit guarantee and the extension of the 'Help to Buy' scheme, there may be a particular uplift in buyer activity around more entry-level price points — a sector of the market which has already seen significant price growth as affordability pressures have risen. 

Of course, government policies are only one piece of the property puzzle, and there's one external factor in particular that's likely to have a bigger impact in the coming year.

Interest rates remain a key to further growth in 2025

After a short and shallow downturn, Australian property prices began rising again back in February off the back of the RBA's first interest rate cut since 2020.

While the cash rate remains high at 4.10 per cent, positive inflation figures have led a wide range of economists to declare another cut later in May to be "locked in," opening the door to more upward momentum for home values. 

Westpac and CBA both see the cash rate falling to 3.35 per cent by the end of 2025. NAB is more bullish, expecting cuts down to 3.10 per cent, while ANZ is the most conservative with a forecast of 3.85 per cent. 

Even the softest of these cases would mean buyers are able to borrow significantly more, putting upward pressure on property prices, particularly towards the lower end of the market. 

For now, home values are rising in nearly every Australian market, reflecting strong demand in the face of a widespread supply shortage. 

Affordability constraints remain a concern, keeping a lid on runaway growth, but with improving consumer sentiment, the potential for further rate cuts, and an ever-growing population, it's looking like further steady gains for Australian property in the short-to-medium term.

Thinking of selling?

If you're looking to get in on the action in 2025, it's important to be as prepared as possible in order to cut through the competition and achieve a standout result. 

Step 1: Understanding how your market is performing

Every market is different, and understanding your local market is fundamental to making the right selling decisions. Our guide to tracking market trends and data will help you to get a clear picture of how your market is performing and how that impacts you as a seller. 

Step 2: Know what your property might be worth

Getting a free home value estimate is a great way to set a foundation for your selling expectations and begin planning the path forward.

Step 3: Get a no-obligation market appraisal from a top real estate agent

Understand what your property could sell for in the current market by speaking to the top-performing agents in your suburb. Comparing top agents in your area will help you find the perfect partner for your selling journey and move towards a successful result.

Step 4: Finally, get your property listing-ready

Taking a thorough approach to preparing your home for sale is another critical step. From cleaning, decluttering, painting and performing other cosmetic renovations to home staging, photography and marketing, getting your property to sale-ready condition is a must.