March 2025: borrowing capacity reopens
APRA's serviceability buffer stayed at 3.0% but the underlying assessment rate fell with the cash-rate cut. Maximum borrowing for a typical investor expanded ~5%.
The mechanics
A median household that could borrow $620,000 in December 2024 could borrow ~$650,000 in March 2025 — a meaningful unlock for first-time investors and a smaller but real unlock for portfolio investors. New-build product priced around $700k–$900k became reachable for a wider pool of buyers.
Asset selection in the new window
With Perth/Brisbane already extended, the cleanest March 2025 buys were Adelaide and selected SE Queensland corridor product. Lead times and builder-pipeline risk remained the binding constraint — not price.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.