Gold Coast Market Surge: What the New 5% Deposit Scheme Means for Buyers & Sellers in 2025

spantaleo
14 minutes ago
4 min read

If you're considering buying, selling, or even refinancing a property on the Gold Coast, now is a pivotal moment to pay attention. The Australian Government’s newly expanded 5% Deposit Scheme, launched on 1 October 2025, is already causing significant waves in the local property market, especially across key growth areas like Carrara, Robina, and Broadbeach.

This policy shift isn’t just for first-home buyers. It’s changing timelines, budgets, and strategies for sellers, investors, and current homeowners too. Here’s everything you need to know about the scheme, how it works, who qualifies, and why it's becoming a game-changer for the Gold Coast real estate scene.

What Is the 5% Deposit Scheme?

Previously known as the First Home Guarantee Scheme, the updated program allows eligible first-home buyers to purchase a property with as little as a 5% deposit, or even 2% for single parents and legal guardians, without paying Lenders Mortgage Insurance (LMI). The government guarantees the remaining portion of the loan — up to 15% — so that banks and lenders can confidently approve these applications.

Key changes as of October 2025:

✅ No income caps: The former $125k (single) and $200k (couple) limits are now removed (Housing Australia).
✅ No waiting list or quotas: Unlike previous versions of the scheme, there are now unlimited places, removing the lottery-style rush.
✅ Increased property price caps: The Gold Coast now allows purchases under $850,000–$1,000,000, depending on the suburb (realestate.com.au).
✅ Expanded eligibility: Buyers can now apply jointly with a friend or relative, and single parents need only a 2% deposit.

This means more buyers can now confidently enter the market, making previously out-of-reach homes attainable.

First-home buyers on the Gold Coast exploring their options under the expanded 5% Deposit Scheme — now available with no income cap or LMI

Why Is This Impacting the Gold Coast Property Market So Fast?

The Gold Coast has already been experiencing strong demand and price growth in 2024 and 2025. With the new low deposit home loan option, that buyer pool has just expanded — fast.

According to PropTrack’s October 2025 report, the Gold Coast median house price has surged to $1.32 million, making it the only regional market where prices outpace the capital city of its state according to PropTracks October report.

The Scheme’s Impact on Buyers

Faster access: Buyers who may have needed 10+ years to save a 20% deposit are now potentially purchasing within 2–3 years of saving just 5%.
No LMI savings: Avoiding LMI can save $10,000–$35,000*, depending on the purchase price.
More suburbs in reach: Suburbs like Tugun, Helensvale, Carrara, Clear Island Waters, and Burleigh Heads are now viable options for first-home buyers.

"The ability to skip LMI and move with just a 5% deposit has completely changed how and where people are buying on the Coast," says Sarah Pantaleo, Principal of Prestige Coast Properties.

Increased eligibility means more property for sale on the Gold Coast will now attract serious interest from previously sidelined buyers, which could drive even more competition.

With buyer demand rising and Gold Coast values hitting record highs, beachfront living is more sought after than ever — making this the perfect time for homeowners to reassess their property’s value.

What Sellers and Current Homeowners Need to Know

If you're a current homeowner or thinking of listing, the scheme can also work in your favour:

Higher buyer demand: With more qualified buyers in the market, well-presented homes are selling faster and with stronger offers.
Rising appraisal values: Homeowners should be aware that properties appraised even 6–12 months ago could now be worth significantly more, especially in sought-after areas like Broadbeach, Palm Beach, and Robina.
Renovation ROI: More competition can reward minor improvements like property styling Gold Coast, painting, or landscaping.

📍 Request a Free Appraisal of Your Home to see how your property stacks up post-scheme launch.

What Types of Homes Qualify Under the Scheme?

Buyers can choose from:

New or existing homes
Apartments Gold Coast for sale
Townhouses or duplexes
House and land packages
Vacant land with a building contract

All purchases must fall under the local price caps, which range up to $1M depending on location and property type.

With so many listings falling within reach, many buyers are exploring dual occupancy, granny flat potential, or low-maintenance coastal homes.

How This Affects Investment Property and Off-Market Sales

Even though the scheme is designed for owner-occupiers, the ripple effects are being felt in the investment market:

Tighter rental supply: As more renters shift into ownership, vacancy rates are expected to tighten.
Improved exit strategies: Sellers with investment property Gold Coast now face a larger buyer pool for resale.
Off-market property sales are increasing as agents work directly with pre-qualified buyers under the scheme.

Who Should Take Action Now?

First-home buyers: If you've been saving for a deposit and thought you'd be priced out — this is your moment.
Sellers: The buyer pool is surging. An updated appraisal could uncover more equity than you realised.
Refinancers or renovators: Leverage current value to upgrade or consolidate.

📞 Ready to chat? Contact Sarah Pantaleo for a free market update, property strategy, or home appraisal. Call us on 0475 212 949 or via email Sarah@PrestigeCoastProperties.com.au.

Final Thoughts: Why This Matters Right Now

The Gold Coast property market is one of the hottest in the country. And it just became more accessible. With incentives like the 5% Deposit Scheme and no LMI, combined with high market momentum, we’re likely to see: