By STEFAN BRADLEY

 

MORE than 600 Gippslanders have taken advantage of the federal government’s expanded five per cent Deposit Scheme for first home buyers, new data from PropTrack and realestate.com.au shows.

The scheme was expanded in October, with the aim of getting more first home buyers into the market, and the majority of those who have used the expanded scheme have not fallen into negative equity despite a dip in prices, according to analysis of Housing Australia and PropTrack’s Home Price Index.

Housing Australia data shows that 16,000 properties were bought in Victoria using the scheme.

In Victoria, the Latrobe – Gippsland SA4 region drove the most significant equity gains for first home buyers at 7.6 per cent, followed by North West (7.5 per cent), and Warrnambool and South East (6.8 per cent).

On the other hand, the Victorian SA4 regions with the narrowest equity margins for first-home buyers were Melbourne – Inner East at 1.9 per cent, followed by Mornington Peninsula and Melbourne – Outer East, both at two per cent – despite lower levels, none slipped into the negative.

“The five per cent first-home buyer scheme was expanded in October 2025. Since then, around 640 households have taken up the scheme in Latrobe – Gippsland,” REA Group economist Luc Redman told the Express.

“Those households have mostly gained equity despite the downturn in other markets and price points, because the affordable end of the market has had a strong bring-forward in demand from the scheme, as the time to save is significantly shorter.

“Participants are entering the market at those price levels earlier than they otherwise would, creating greater competition and upward pressure on prices.”

First-home buyers tend to seek more affordable properties, and those in more regional areas, which have seen higher price growth. That has meant the five per cent deposit first-home buyers have seen price growth trend upwards, protecting them from negative equity.

Only 0.3 per cent of first-home buyers in Victoria who leveraged the five per cent deposit scheme since October last year are in negative equity. This represents 43 households state-wide.

At this time, SA4 regions that recorded equity of five per cent or less hold less value in their home than the deposit paid, though this will likely bounce back by the time they sell.