Last month the federal government used Budget 2024 to announce a raft of new measures aimed at the cost of living, especially housing.
We explore how these are likely to impact the local property market here in Sydney’s inner eastern suburbs.
Rental assistance
One of the most important ways the government will help is by increasing the amount of rental assistance available. This is sorely needed for many, when you consider that, since the start of the pandemic, the national median rent has increased 31%.
In Sydney, the median rent rose 9.0% last year alone, outpacing the rate of house growth. In Potts Point, rents have grown faster still, growing 9.2% in the last 12 months and 30% since August 2022. It now costs $650 to rent the median Potts Point apartment, even though there are more one-bedroom and studio apartments here than virtually anywhere in the country.
Rental assistance has a significant impact on our area, not least because we have one of the highest percentages of renters anywhere in the country. According to Census 2021, 64.1% of properties in Potts Point are rented. That’s almost exactly twice the NSW average (32.6%) and more than double the national average (30.6%).
We think rental assistance is vital to keeping our area and community functional because it contributes to diversity and allows necessary workers who often don’t receive a high income – such as health care and education professionals – to live close to their employment.
The extra rental assistance will be available to anyone receiving income support payments or who qualifies for Family Tax Benefit A.
Affordable housing
It’s not just rental subsidies that the government is targeting. It has also used Budget 2024 to address the issue of housing supply.
Lack of available properties has been a genuine issue in Sydney for some time now, and our area has been one of the most affected. In fact, realestate.com.au data shows that there are currently 2,517 interested apartment buyers in Potts Point and just 64 apartments for sale.
All up, the government aims to build 40,000 social and affordable homes.
While lack of available land may mean we don’t receive the bulk of these properties, it’s likely we may see some new affordable developments take shape.
Student accommodation
More international students were living in Australia in 2023 than ever before, with 713,144 currently calling Australia home. This has been one of the main contributors to our country’s recent population growth, with the national population passing 27 million in January 2024 and set – at current growth rates – to hit 28 million in August 2025.
The rise in the number of overseas students has been cited by the government as one of the factors contributing to property and rental price growth. After all, each overseas student needs somewhere to live.
The government used the budget to announce it will require universities to do more to accommodate them by increasing their supply of student housing.
In fact, the Treasurer used his Budget speech to announce that it was going to specifically tie the cap on international students to the amount of housing available.
Downsizers
Downsizers are a vital part of our local market, and while there was nothing in this Budget specifically for them, many will still enjoy access to the Downsizer Super Contributions scheme.
Under this scheme, people 55 or older can contribute up to $300,000 from the sale of the family home into their super as a non-concessional contribution. (Although it does count towards the Transfer Balance cap). A couple who sell a home can potentially contribute up to $600,000.
This can be a great incentive to downsize to a convenient, low maintenance and vibrant neighbourhood like Sydney’s inner eastern suburbs.
Other measures
Another Budget 2024 announcement that came as a relief to many was a $300 energy bill rebate. It will also introduce the Stage 3 tax cuts that should lead to more money in many people’s pockets.
Finally, the government announced that it would be enlisting the help of the real estate profession in its fight against money laundering. We’re now required to report any suspicious transactions we come across.
Want more?
If you’re thinking of buying or selling in Potts Point and Sydney’s inner east, contact my team today.
