Melbourne’s auction market is heating up as an uncapped first-home buyer scheme collides with spring supply.

More than 1000 Melbourne homes will go under the hammer this weekend as a new first-home buyer scheme gives young Australians fresh hope of cracking the market.

Exclusive PropTrack figures show 1070 auctions are scheduled across the city — down 4 per cent on the same weekend last year — with experts warning demand will sharpen at the affordable end as government incentives collide with spring supply.

PropTrack senior economist Angus Moore said the uncapped expansion of the First Home Guarantee was unprecedented.
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“Last year every one of the 50,000 places was taken up,” Mr Moore said.

“Now it’s uncapped, a first at federal level, the government expects another 20,000 people could take it up, but it could be more.

“We don’t have a benchmark for a policy like this.”

While official modelling points to a modest price effect, Mr Moore said the impact would be felt where first-home buyers were most active.

“Yes, it will push prices up. The 0.5 per cent government estimate feels conservative,” he said.
“The sharper effect will be in entry-level suburbs where competition is already strongest.”

Rhett Simonds says young Australians need steady, sustainable demand, not a market sugar rush.

Builders say enquiry has lifted since the July changes, Simonds Homes chief executive Rhett Simonds said young buyers had been locked out for years.

“Every little bit helps,” Mr Simmonds said.

“We don’t want a sugar rush that overheats the market. Slow and steady demand is far healthier.”

Mr Simonds said finance remained the toughest barrier.

More than 1000 homes will go under the hammer in Melbourne this weekend. Picture: NCA NewsWire / Ian Currie

“Affordability and borrowing power are the hardest hurdles,” he said.

“It’s their life savings we’re being entrusted with, and that’s not just a transaction, it’s their future.”

Auction numbers are expected to build further in the weeks ahead, with 1278 homes scheduled for next weekend — up 6 per cent year-on-year.

PropTrack economist Angus Moore says uncapped incentives will push prices higher where first-home buyers are already battling.

Mr Moore said this weekend’s tally was healthy despite the dip.

“Over 1000 auctions in a weekend is solid,” he said.

“Last year was unusually strong, so the small fall this year is more about how busy 2023 was than weakness now.”

Late October and early November are tipped to be the busiest weeks of spring.

The First Home Guarantee has been expanded and uncapped, opening doors for thousands of new buyers. Picture: Asanka Ratnayake/Getty Images

The PropTrack senior economist said the scheme would not fix affordability long term, but combined with rate cuts it would give activity a meaningful lift.

“We’re forecasting steady growth in Melbourne over the next 12 to 18 months,” Mr Moore said.

“The scheme won’t radically change the market overall, but it will add pressure where first-home buyers are most concentrated.”

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Lending industry groups and FHFA director Bill Pulte welcomed Fair Isaac’s new direct license pricing as a useful first step, but said more reforms and competition are needed.

Marella by Mosaic is a 30-storey luxury residential tower at Broadbeach developed and constructed by Mosaic Property Group and designed in partnership with Plus Studio.

Completed this year, Marella by Mosaic features 98 luxury two- and three-bedroom residences and penthouses, with every apartment capturing views of the ocean.

Plus Studio principal Chrisney Formosa said they were inspired by the golden colour of the afternoon sun hitting the sand and the way water moved along the coastline when outlining the architectural vision for the tower with Marella’s form uniquely responsive to its site.

“With the facade creating refractions of light that glisten and glow, we have pushed creative boundaries whilst ensuring constructability,” she said.

Marella by Mosaic is a new 30-storey luxury residential tower at Broadbeach, completed this year.

“The tower achieves its sculptural, flowing appearance through an innovative approach – using carefully angled straight elements rather than curved panels.

“With a sand-toned, warm and tactile material palette, the building is accented in golden bronze hues that radiate light.

“Responding to the climate and to ensure comfort, the building has a solid form on the west to block unwanted sun, whilst the east side has been glazed to invite morning light and maximise the spectacular views toward the golden Broadbeach coastline.”

Hotel-style amenities at Marella include a grand lobby featuring full-height glazed entry doors, timber-look panelling, high ceilings, curated artwork and warmly-lit spaces that glow from the street.

Marella is the second completed design collaboration between Plus Studio and Mosaic Property Group.

“With layered, lush integrated planting extending to level one, the ground floor is further activated, drawing attention toward the entrance on the prominent corner site and creating a subtropical sanctuary,” Ms Formosa said.

Level one has wellness facilities including a pool, outdoor dining areas with a parkland outlook, gymnasium, sauna and steam room.

The standout amenity is the level 11 residents’ lounge featuring a private dining room, wine cellar, and terrace.

Mosaic founder and managing director Brook Monahan said it was a building that delivered more than just a place to live.

Marella is the seventh project Plus Studio has designed in Broadbeach.

“It offers residents an elevated experience in every sense – from world-class amenities and architectural integrity, to a location that puts the very best of Broadbeach right at their doorstep,” he said.

Ms Formosa said the project’s success reflected the strength of the partnership with the outcome the result of a deeply-collaborative design process with Mosaic.

“They don’t just hand over a site and step back – they bring an incredibly clear vision, detailed briefs, and an unwavering focus on quality,” she said.

“That clarity and rigour pushed us to deliver our best.”

Marella was designed in partnership with Plus Studio, who were inspired by the golden colour of the afternoon sun hitting the sand and the way water moved along the coastline when outlining the architectural vision for the tower.

Marella is the second completed design collaboration between Plus Studio and Mosaic Property Group following Dawn by Mosaic in Mermaid Beach. A third, Lily by Mosaic, which neighbours Marella, is due for completion later this year. The development is also the seventh project Plus Studio has designed in Broadbeach.

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Why one type of home could see its popularity rise under the latest government housing incentive.

The government’s 5% deposit scheme for first-home buyers is now in effect. That means that Australians who have never owned property before now have the opportunity to buy with less than a 20% deposit, while avoiding the cost of lenders mortgage insurance that would usually be owing. 

One housing type that could see an influx of attention is the townhome market, due to the price point and size of these homes. 

They’re traditionally bigger than apartments, often offering three bedrooms and more outdoor space than in a traditional unit block, while lower-maintenance and not quite as big – or as pricey – as a detached house. 

With the average age of a first-home buyer now sitting at 34, according to the latest data from Westpac, and family-minded buyers in that cohort looking for a home that will accommodate current or future children, it’s easy to see how townhomes might appeal. 

PropTrack’s executive manager of economics, Angus Moore, commented on the potential appeal of this type of housing as the scheme kicks off. 

“For some first-home buyers, particularly those that are a bit older – and first-home buyers have been getting older over the last two to three decades – having the extra bedroom and extra space that a townhouse provides relative to an apartment may be attractive.” 

Coupled with some state-based incentives that offer discounts or exemptions on stamp duty if buyers are purchasing a brand-new build, it also wouldn’t be a surprise to see interest increase in off-the-plan townhome developments in the months ahead. 

Unfortunately, however, the number of new townhouses available off the plan could be limited. 

According to the latest figures from the Australian Bureau of Statistics, townhome approvals have been on something of a downward slide lately.

In August 2025, approvals for townhomes fell 19.1% month-over-month, with just 2424 dwellings getting the go-ahead during the month. This is compared to a monthly average of 2,632 townhouse approvals in the 12 months prior to August 2025. 

With price caps in place for the maximum price that a first-home buyer can pay and still be eligible for the scheme, not all townhomes will qualify as an eligible property. 

But in the new homes market, there are a number of townhomes across metro and regional zones that could soon be in the headlights for first-home-buyers. 

In the south-west Sydney suburb of Edmondson Park, buyers can live within walking distance of the new neighbourhood hub that’s the centre of Ed.Square, being developed by Frasers.  

With over 80 retailers like Eat Street, Event Cinemas, Coles, copious eateries, and more, Sydneysiders are being drawn by the convenience of this neighbourhood, while still in easy reach of the city’s CBD. 

One- two- and three- bedroom townhomes are available here, with the larger homes still under the program price cap, at $1.2 million. 

In Melbourne, 11km out of the city centre, a new development at Altona North fits within the the budget of prospective buyers under the scheme. Townhomes at Stockland – Haven offer tree-lined streets with several pocket parks and easy proximity to Altona beach. Two- three- and four-bedroom townhouses are available here, with the latter priced from $939,000. 

And in the city’s north-west, Carrick Lane Residences in Strathmore has a three-bedroom offering that comes in at $849,000 for a generously sized home of 171sqm. 

In Brisbane’s Albany Creek, the boutique townhome development Alba has options that sit under the $1 million limit for Brisbane buyers, with three-bedroom town homes selling from $959,000. 

A resort-style pool, BBQ area and landscaped grounds provide added amenity for residents who might want some of the features of a detached house, but without the maintenance. 

And in Adelaide’s waterside suburb of West Lakes, a new development that has been underway for two years now is coming to life at an old SA Water site, with the 17ha area eventually slated to host almost 500 homes.  

The townhomes in the development range from two- to four-bedrooms, with two-bedroom designs sitting under Adelaide’s $900,000 price cap, starting at $759,000. 

Are you interested in buying a brand-new townhome? Check out our dedicated New Homes section.

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