A growing number of first-home buyers are moving into the new home construction market as proposed changes to capital gains tax (CGT) reshape buyer behaviour and reduce competition from investors, according to an Australian builder.

Builders across Australia are reporting a surge in enquiries from owner-occupiers who believe the changing investment landscape may finally provide an opportunity to enter the housing market after years of being priced out, according to Managing Director of David Reid Homes Australia, Matt Jackson.

He said the shift was already becoming evident, with young couples and families moving quickly to secure land and building opportunities before market conditions change again.

“We are seeing a significant increase in enquiries from genuine home buyers who believe this may finally be their chance to get ahead,” Mr Jackson said.

He said many prospective buyers had spent years competing against investors with greater financial resources and tax advantages, but were now seeing an opportunity to gain a foothold in the market.

The strongest increase in demand is coming from people in their late 20s and 30s, along with young families who had previously delayed home ownership.

“We are seeing growing enquiry from people in their late 20s, 30s and young families who had almost given up on home ownership,” Mr Jackson said.

The renewed confidence is also driving interest in land purchases and knockdown-rebuild projects, particularly in growth corridors and emerging residential estates.

“People understand these windows do not stay open forever. They are trying to secure land and start building while conditions may be more favourable,” Mr Jackson said.

He said new homes were becoming increasingly attractive as buyers sought energy-efficient designs, modern layouts, lower maintenance costs and long-term value.

At the same time, uncertainty surrounding future investment returns appears to be making some investors more cautious, creating what Mr Jackson described as “breathing room” in sections of the market that have remained highly competitive for years.

The increase in owner-occupier demand is also providing a welcome boost for the residential construction sector, supporting builders, tradespeople and suppliers.

However, Mr Jackson warned that planning delays, land supply constraints and approval bottlenecks could limit the benefits unless governments move to streamline processes and accelerate housing supply.

He said the next 12 to 24 months could prove pivotal for Australia’s housing market, potentially giving a generation of aspiring homeowners their best opportunity in years to build and buy their first home.