How Real Estate Policies from Australia’s Major Political Parties Could Impact the Southern Highlands Market

As Australia’s major political parties roll out their housing policies, what could this mean for the Southern Highlands property market?

By Harry Jeffcoat

01-05-2025 |

The Australian property market is always influenced by a range of factors—economic conditions, interest rates, supply and demand—but politics also plays a crucial role. As we approach another election cycle, it’s important to consider how the policies of the country’s major political parties might shape the real estate landscape, especially in regional areas like the Southern Highlands.

At First National Real Estate Moss Vale, we believe that being informed empowers our clients. Below, we explore key real estate-related policies from the major political parties and how they could potentially impact buyers, sellers, investors, and renters in our region.

Liberal/National Coalition: Encouraging Home Ownership and Regional Growth

Key Policies:

  • Support for first home buyers through existing schemes like the First Home Guarantee.
  • Continued focus on infrastructure investment in regional areas.
  • Opposition to capital gains tax (CGT) and negative gearing reforms.

Potential Impacts on the Southern Highlands: The Coalition’s emphasis on home ownership and regional infrastructure aligns well with the Southern Highlands’ lifestyle appeal. Policies that promote regional investment and maintain tax concessions for investors may encourage continued demand from both first-time buyers and investors. With more people seeking tree-change lifestyles, Moss Vale and surrounding areas could benefit from these ongoing incentives and infrastructure improvements.

Australian Labor Party (ALP): Boosting Supply and Affordability

Key Policies:

  • The Help to Buy scheme (shared equity model).
  • Construction of 1.2 million new well-located homes over five years.
  • National Housing Accord to coordinate planning and investment across levels of government.
  • Support for renters through improved rights and housing standards.

Potential Impacts on the Southern Highlands: Labor’s focus on increasing supply and affordability could help ease the upward pressure on home prices in the region over time. The Help to Buy scheme may assist more locals and lower-income buyers in entering the market, while the broader housing construction goals could stimulate local building industries. If rental reforms pass, property managers and landlords in the Southern Highlands should prepare for updates to tenancy laws and compliance standards similar to what we have already seen.

The Greens: Aiming for Housing as a Human Right

Key Policies:

  • Phase-out of negative gearing and capital gains tax concessions.
  • Investment in 1 million publicly owned homes.
  • Rent freezes and caps nationwide.
  • Stronger protections for renters and limits on short-term rentals.

Potential Impacts on the Southern Highlands: If the Greens’ policies gained traction—either independently or through crossbench negotiations—investors might become more cautious, particularly with changes to negative gearing and CGT. While these measures aim to reduce housing inequality and speculation, they could result in less private investment in regions like the Southern Highlands. On the flip side, stronger renter protections and restrictions on short-term letting may appeal to permanent residents and long-term tenants.

Independent and Minor Party Influence

In an increasingly diverse political landscape, independents and minor parties often hold balance-of-power positions, especially in the Senate. Many advocate for stronger planning controls, environmental protections, and more localised housing strategies. These voices can influence funding for infrastructure and development in areas like Wingecarribee Shire and potentially shape future housing and zoning decisions.

What Does This Mean for You?

The Southern Highlands remains a desirable location for a wide range of buyers—from first-home buyers and retirees to investors and tree-changers. Understanding the potential impacts of national housing policies is key to making informed decisions.

At First National Real Estate Moss Vale, we’re committed to helping you navigate the evolving property market. Whether you’re buying, selling, investing, or renting, we can help you stay informed and prepared.

Thinking about your next move in the Southern Highlands?
Get in touch with our team today for expert local advice backed by national insight.

Legal Disclaimer:

The information provided in this blog is for general informational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are advised to seek independent advice from qualified professionals regarding their individual circumstances. First National Real Estate Moss Vale does not accept any responsibility for any loss which may arise from reliance on information contained in this blog post.