What a Labor Government Means for Apartment Owners and Buyers in NSW

The re-election of the Albanese-led Labor government in 2025 has brought renewed focus to housing affordability and supply. For apartment owners and prospective buyers in New South Wales, particularly within urban centres like Sydney, this political continuity means the rollout of several key housing initiatives that aim to reshape the apartment market in the years ahead.

Expanded First Home Guarantee Scheme

The First Home Guarantee has been broadened to allow more first-home buyers to purchase properties with a 5% deposit without needing to pay Lenders Mortgage Insurance (LMI). Unlike earlier iterations, the updated scheme removes previous income and property price caps. This means eligible buyers in high-cost areas like inner Sydney can access apartments with significantly reduced upfront costs—providing a substantial boost in demand for apartment living.

$10 Billion Commitment to Build 100,000 First-Home Buyer Homes

Aimed at tackling housing shortages and affordability, the Labor government is investing $10 billion into the construction of 100,000 new homes over eight years. These homes are to be delivered through partnerships with states and territories and prioritised for first-home buyers—not investors—further encouraging owner-occupancy in the apartment sector.

Help to Buy Shared Equity Scheme

This scheme allows eligible buyers to purchase a home with as little as a 2% deposit, with the federal government taking an equity stake of up to 40% for new dwellings. It applies to both houses and apartments and is expected to support 40,000 Australians over four years. It’s particularly attractive for younger buyers entering the apartment market in dense metropolitan regions.

NSW-Specific Changes: Low and Mid-Rise Housing Policy

Complementing federal initiatives, the NSW Government’s new Low and Mid-Rise Housing Policy—effective from February 2025—introduces zoning changes to encourage apartment construction in areas close to transport, jobs, and amenities. The policy is designed to unlock over 112,000 new homes across Greater Sydney and other regions over five years, with many of these expected to be medium-density apartments.

Price Outlook and Implications for Apartment Owners

While affordability policies are aimed at helping first-time buyers, they may also place upward pressure on prices due to increased demand. In NSW, especially Sydney, property analysts anticipate apartment values in the sub-$1 million range could rise 6–10% through 2025 as demand outpaces supply. This is beneficial for existing owners looking for capital growth, but it underscores the importance of managing strata communities effectively in high-demand environments.

The Role of Experienced Strata Management

As affordability challenges shift buyer interest toward apartments, demand for well-managed strata communities is expected to rise. A knowledgeable and proactive strata manager is essential—not just for asset protection but also for ensuring harmonious, liveable communities amid growing density. Compass Strata brings decades of experience in navigating the complexities of strata living in NSW. Whether you're a current owner navigating increasing occupancy or a new buyer entering the market, Compass Strata offers expert guidance to owners corporations—ensuring legal compliance, financial health, and a positive living environment. Contact Compass Strata today to learn how we can support your apartment community through this evolving housing landscape