Australia’s housing market is showing renewed momentum, creating fresh opportunities for residential property investment.

Falling interest rates have boosted buyer confidence and lifted listings, with NAB executive Denton Pugh declaring the sector has “reached a turning point” following the RBA’s February rate cut.

More cuts are expected in the coming months. “This isn’t a boom, but the tone has changed,” Pugh said, noting increased activity from first-home buyers and upgraders.

In March, national home prices rose 0.4%, with Darwin, Adelaide, and Brisbane recording the strongest gains. Listings jumped 6.1% year-on-year, particularly in Sydney and Perth.

According to REA’s Angus Moore, lower borrowing costs and steady price growth are luring more sellers into the market, creating a broader range of options for property investors.

However, challenges remain, affordability pressures and limited housing supply continue to shape market conditions.

PropTrack data recorded a more modest national price increase of 0.3% in March, with Sydney and Canberra leading the trend.

REA economist Eleanor Creagh expects the market to experience steady, sustainable growth rather than sharp spikes.

At the same time, Labor’s proposal to expand the First Home Guarantee Scheme is sparking debate.

Critics argue it could drive up demand without addressing supply, while supporters claim it could help younger buyers overcome deposit hurdles, potentially creating more activity in the entry-level investment segment.