Australian housing values experienced their seventh consecutive monthly increase in August[i]. However, Raine & Horne, a leading real estate group, warns that stock shortages will continue unless policy reforms are considered to encourage more Australians to sell their properties.

Angus Raine, Executive Chairman, Raine & Horne, says targeted incentives—such as a capital gains tax holiday for older investors and stamp duty relief for “last-home buyers”—would give more property owners the confidence to sell, freeing up thousands of family homes for younger buyers and growing families.

“Empty-nesters need compelling reasons to move—whether that’s freeing up equity to enjoy retirement, relocating closer to family, or downsizing to a low-maintenance home. With the right incentives, these households can make their next move while helping the next generation of Australians get their foot on the ladder,” Mr Raine said.

According to Cotality (formerly CoreLogic), dwelling values rose 0.7% month-on-month in August, the fastest pace since May 2024, with capital city prices increasing 0.8%. The market upswing, which began in February following the first RBA rate cut, has been fuelled by further rate cuts in May and August, alongside improving real wages, rising consumer confidence, and an ongoing housing stock shortage.

Adding to improved buyer confidence, from 1 October 2025, every first-home buyer in Australia, regardless of income, will be able to purchase a property with just a 5% deposit under the expanded Home Guarantee Scheme. The scheme, brought forward from 2026, also lifts property price caps up to as much as $1.5 million for some locations, opening the door to thousands of additional buyers in markets where entry-level homes are priced well above the previous caps.

Despite these strong demand drivers, Raine & Horne’s latest figures show sellers remain reticent to make a move heading into the traditional spring selling market, with appraisals down 15% year-on-year and listings 9% lower year-on-year.

Mr Raine has outlined two key reforms to encourage more property owners to sell:

• CGT holiday for older investors – Introduce a time-limited (e.g. 24-month) capital gains tax exemption for older investors who sell, giving them greater confidence to release properties back into the market.
• “Seniors home buyer” stamp duty relief – Provide targeted concessions for empty-nesters (e.g. over 70) selling a principal place of residence and downsizing into a smaller, more suitable home.

“These measures would deliver a win-win, giving older Australians the financial confidence to sell while unlocking much-needed housing supply for first-time buyers and upgraders,” Mr Raine said.

Looking ahead, Mr Raine expects national dwelling values to rise 5- 7% in 2025, before accelerating to 8–10% in 2026 as further RBA rate cuts and new first-home buyer initiatives take effect. 

[i] https://www.cotality.com/au/insights/articles/housing-values-bloom-ahead-of-what-is-likely-to-be-a-very-active-spring-selling-season?utm_source=adwords&utm_medium=ppc&utm_campaign=2025_Cotality_Search_Brand_Leads&utm_term=cotality