ISCOVER
A new building boom in capital cities – driven by government incentives, affordability issues, and renewed confidence in the construction sector – is providing significant opportunities for brokers, says Brighten’s Chris Meaker.
We’ve been reviewing borrower activity since the end of the financial year and the data points to a new building boom across Australia’s capital cities.
While it’s too early to predict the full scale, the trend has the potential to reshape the urban landscape for decades. It also prompts brokers to consider where future business opportunities may emerge in FY26.
What we are seeing
Over the past financial year, Brighten recorded our highest-ever annual increase in construction and vacant land loans as a share of total applications. Where once the overwhelming majority of borrowers were focused on buying already-existing homes, more Australians are now choosing to build their own.
Most growth is concentrated in state capital corridors, where more vacant land is available. Once seen as fringe markets, these areas are rapidly becoming hotspots for borrower demand, driven by substantial purchasing power and contributing significantly to the new housing supply Australia urgently needs.
In Victoria, demand has been strongest in suburbs like Tarneit, Hoppers Crossing, Clyde North, and Craigieburn.
In NSW, the north-west corridor, including Box Hill, Marsden Park, Berkshire Park, and Grantham Farm, is leading the way.
Queensland’s growth areas include Acacia Ridge, Heathwood, Munruben, and Park Ridge, with Toowoomba’s surrounds also emerging as a construction hotspot.
Why now?
A number of economic and policy trends are converging to make building more attractive than buying established homes.
Government incentives are playing a big role. In most states, First Home Owner Grants (FHOG) and stamp duty concessions are more generous for new builds.
Queensland recently doubled its FHOG to $30,000 for new homes. NSW and Victoria also offer targeted incentives that make building a more affordable option than buying an existing house.
Affordability is another key reason. With median house prices at record highs, many borrowers have been priced out of established markets. Buying land in a growth corridor and building is now a more economically viable way to enter the property market, especially when paired with more bespoke financing options.
If prices continue rising, this shift is likely to accelerate. For many, building will become the only accessible path to home ownership.
There is also growing confidence in the construction process itself, in a macro-economic sense. Interest rate cuts are on the horizon, which makes long-term projects like building feel more manageable. And the COVID-19-era cost blowouts that plagued the sector are easing. Material prices are stabilising and labour shortages are improving.
The financial and logistical risk of contemplating a new home is no longer as daunting as it was just three years ago.
In essence, the worst of the cost blowouts and rate shocks are now behind us, allowing latent demand for new homes to resurface and allowing it to become an option for those who previously lacked the required confidence.
What this means for brokers
Many have built successful businesses around traditional home loans, which may no longer be enough.
Construction loans involve more moving parts, more decision points, and more opportunities to add value. They also lead to stronger, stickier client relationships that extend beyond a single transaction.
A borrower who builds is unlikely to need just one loan. They might need three. The process often starts with a land loan, followed by a construction loan, and sometimes bridging finance or interim funding if they are selling another property. That means more complexity, more guidance, and more trust.
It also means greater long-term value. Construction loans tend to be larger and more structured. They take longer to settle, but often deliver better returns in both upfront commission and trail income.
What matters most is that this is still a specialised area. Construction lending is not a set-and-forget product. It requires brokers to understand staged payments, progress draws, valuation sequencing, builder timelines, and conditional contracts.
Many brokers are not yet confident in this space. That gap presents a real commercial opportunity for those willing to invest in gaining the knowledge.
Borrowers who are building need both a guide and access to a strong product. They need someone who can help manage the timeline, anticipate the risks, explain how each stage works, and keep the builder and lender in sync. The broker who can offer that level of support becomes a partner for life, not just a one-time facilitator.
That’s why it’s important to look broadly at the market and determine where the trends are, so you can bridge demand with knowledge and the right products to lead growth in FY26 and beyond.
Chris Meaker is director and head of distribution at non-bank lender Brighten.
The non-bank lender offers a range of competitive Full Doc, Alt Doc, Expat, Non-Resident, Bridging, Construction, and Commercial products to borrowers.
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