As the 2025 Federal Budget approaches, those of us on the frontlines of the property market are watching closely.
The decisions made will directly impact our industry, our clients, and, ultimately, our business success.
Here’s what I believe real estate professionals should advocate for and prepare to leverage in the coming financial year.
Construction Workforce Crisis Demands Immediate Action
Every day, we face the reality of the construction industry’s challenges.
The same story emerges when speaking with developers and builders – they simply cannot find enough skilled workers to meet demand.
For agents trying to sell off-the-plan properties or developments, this translates to extended completion timeframes and uncertain delivery dates that complicate client expectations.
An expanded skilled migration program targeting construction professionals isn’t just good policy—it’s essential for our business pipeline.
Without it, the properties we need to sell tomorrow won’t be built on schedule, creating a ripple effect throughout the entire market.
First Home Buyer Opportunities Remain Crucial
The First Home Guarantee programs have been a lifeline for many agents working with entry-level buyers.
However, as property values continue to rise in many markets, the current price caps are increasingly restrictive, limiting the inventory available to these motivated purchasers.
What’s often overlooked is the knowledge gap among potential first-time buyers.
Many of your prospective clients have the financial capacity to purchase but lack awareness of pathways to homeownership.
A government-funded education campaign would create more qualified buyers – expanding your potential client base while addressing affordability concerns.
The Downsizer Market: Untapped Potential
For agents specialising in luxury or family homes, older Australians’ resistance to downsizing represents a significant barrier to inventory.
Enhanced superannuation contribution schemes and stamp duty concessions would motivate these homeowners to make a move, potentially unlocking thousands of family homes in established areas.
Consider the business opportunity: for every successful downsizer, you gain potentially two transactions – their sale and their purchase of a more suitable property.
Agencies should position themselves now to capitalise on potential policy changes by identifying suitable downsizer stock and cultivating relationships with potential downsizers in their core areas.
Green Energy: The New Selling Point
Sustainability features are rapidly moving from nice-to-have to must-have status in property marketing. Budget allocations for green energy initiatives represent a direct opportunity to enhance the marketability of your listings.
Forward-thinking agents should document existing energy-efficient features in their listings and advise sellers on cost-effective green improvements that could be subsidised under new budget measures.
For investment property specialists, highlighting potential rental yield improvements from energy efficiency upgrades could become a compelling investor acquisition strategy.
The 1.2 Million Homes Initiative: Volume Opportunity
The government’s housing targets present a volume opportunity unlike anything we’ve seen in decades, but only if adequately funded.
Additional budget support, particularly measures to attract foreign investment into high-density projects, would significantly increase listing opportunities in growth corridors.
Agencies operating in designated growth areas should develop relationships with developers now and monitor budget announcements that might accelerate projects in their territories.
Property Management: Addressing the Breaking Point
The shortage of qualified property managers has reached crisis levels for many agencies, limiting growth and creating compliance risks.
Budget funding for specialised training and migration pathways would help address this critical business constraint.
Agency principals should be prepared to leverage any new training initiatives or migration pathways to build property management capacity, potentially capturing market share from competitors struggling with staffing challenges.
Infrastructure Investment: Creating Tomorrow’s Hotspots
The expected 1 billion AUD allocation for the Western Sydney Airport rail corridor demonstrates how infrastructure investment creates property hotspots.
Similar transformative projects nationwide will reshape value maps and create new opportunity zones for savvy agents.
Agencies should be mapping announced and potential infrastructure projects against their core territories, identifying properties likely to benefit from accessibility improvements, and educating clients about future growth potential.
The Bottom Line
The 2025 Federal Budget will create winners and losers in the real estate industry. Professionals who understand policy impacts, anticipate market responses, and position their businesses accordingly will find opportunity regardless of specific budget outcomes.
As we await the budget announcement, now is the time to assess your business model, identify vulnerability points, and develop strategies to capitalise on potential government initiatives that align with your market segments.
