Does the end of the financial year impact the real estate market?

Over the past month, most people have been focused on tax returns and tying up loose ends before the closing of the financial year. For buyers, sellers and investors, the end of the financial year (EOFY) can bring subtle shifts to the market. While it isn’t a major game-changer, EOFY does influence timing and decision-making, creating opportunities for those who are ready to act. 

How the new financial year shapes market behaviour 

The new financial year brings more than just fresh budgets and tax resets; it can also influence activity across the real estate industry. While not as dramatic as interest rate movements or market booms, the start of a new financial year can create subtle shifts in buyer behaviour, investor confidence, and overall market momentum. 

Renewed activity among buyers and sellers 

“The start of the financial year often acts as a reset button, a time when many people take stock and get their finances in order. After meeting with accountants or financial planners, buyers typically emerge in July, August, and September with renewed confidence, updated budgets, and pre-approvals in hand. For those who’ve been waiting on tax returns or clarity around borrowing power, this period can mark the beginning of serious house hunting,” says Jamie King, Head of South Australia for Hockingstuart. 

This fresh wave of motivated buyers can increase competition in the early months of the new financial year, making it a more active period for those entering the market. 

On the selling side, July often signals the end of a slower winter period. Many sellers use this time to prepare for a spring campaign: styling homes, completing maintenance, and connecting with agents, all of which helps build momentum in the lead-up to the traditionally busy spring selling season. 

Property investment planning 

For property investors, the new financial year is also a key planning period. After lodging returns and reviewing their previous year’s performance, many reassess their strategies. Those who’ve seen strong rental yields or capital growth may consider expanding their portfolio, while others may decide to sell underperforming assets. 

New tax rules, depreciation schedules, or updates to lending policies that came into effect from July 1 can also prompt a spike in investor activity, especially in areas with strong rental demand or in property types like townhouses, units, and dual-income homes. 

Changes to grants, government policy and superannuation rules 

The beginning of the new financial year is often the date when governments roll out updates to housing policies or first home buyer incentives. Changes to stamp duty thresholds, grants, or tax benefits can have a direct impact on affordability, prompting some buyers to act once changes come into effect. 

One notable change this year is the new tax rule for super balances over $3 million. From July 1, earnings on the portion above that amount will be taxed at 30%, instead of the previous15%. While this mainly affects high-net-worth individuals, it could lead to changes in investment strategies, especially for those holding property in super. That’s because even if a property increases in value but isn’t sold, the gain (on paper) will now attract tax, without any guaranteed income to cover the bill. 

For information on the latest changes and how they might impact you, your local Hockingstuart agent is here to help. 

Final thoughts 

While the new financial year may not dramatically swing property prices, it does influence the mindset and decisions of buyers, sellers, and investors. Whether you are looking to buy with a clearer financial picture, prepare your home for a spring sale, or explore new investment opportunities, understanding the trends around EOFY can give you a strategic edge.  

For the latest updates on the real estate market, explore the newest issue of Insight - your exclusive, boutique guide to the Australian property landscape. It features expert commentary from our industry leaders on national market trends, property values, and investment opportunities. 

For expert advice tailored to your goals, reach out to your local Hockstuart office. We’re here to help you make your next move with confidence.