Last week, the Reserve Bank of Australia (RBA) made its third rate cut this year, lowering the official cash rate by 0.25% to 3.60%.
Historically, such rate reductions have been linked to a significant rise in Australian home values, with double-digit growth expected within two years of the start of a rate-cutting cycle, according to the Australian Financial Review.
This latest cut has spurred a surge in property market activity, as evidenced by preliminary auction results over the weekend, showing that 75.0% of homes taken to auction were sold. This figure represents a 3.4% increase from the previous week and marks the highest rate since early April last year.
The rise in auction clearance rates was noted across all capital cities. Melbourne achieved a preliminary clearance rate of 75.5%, a 4.6% increase from the previous week and the highest figure since late July. Sydney also recorded a high clearance rate at 75.0%, marking its strongest performance since mid-July.
According to Cotality's daily dwelling values index, property values, particularly in Sydney, are witnessing an upward trend. Market analysts predict a further three 0.25% rate cuts by mid-2026, which would lower the cash rate to 2.85%.
The potential reduction in rates, alongside the Albanese government's initiative that allows first-home buyers to secure properties with a 5% deposit starting 1 January 2026, is anticipated to amplify buyer demand and push property prices higher.
Published:Monday, 18th Aug 2025 Source: Paige Estritori
Last week, the Reserve Bank of Australia (RBA) made its third rate cut this year, lowering the official cash rate by 0.25% to 3.60%. Historically, such rate reductions have been linked to a significant rise in Australian home values, with double-digit growth expected within two years of the start of a rate-cutting cycle, according to the Australian Financial Review. - read more
In a recent financial disclosure, Bell Financial Group (BFG) announced a notable 44% drop in half-year net profit after tax as it navigates challenging market conditions. While the company's overall revenue declined by 12.5% to $121.5 million, its Technology & Platforms and Products & Services units showed resilience with a combined revenue increase of 12% to $46.3 million. This contrasts sharply with the 23.5% revenue dip in its broking division, which totalled $69.4 million. - read more
The evolving landscape of private credit funds in Australia necessitates greater responsibility from self-directed investors, according to Darren Connolly, the Chief Executive of Investment Markets. As the landscape of fixed income investments becomes increasingly complex, investors are being urged to take ownership of their decision-making processes. - read more
In recent times, Australians have witnessed a notable uptick in the use of online personal loans. The trend emerges as part of a broader digital transformation, where convenience and speed take precedence. This shift has facilitated access to financial services with just a few clicks, making personal loans available to anyone with an internet connection. - read more
Financial harmony involves the smooth and balanced management of personal finances, where debts and savings are optimally aligned to achieve financial stability and peace of mind. - read more
Applying for an online loan can be a convenient way to manage your finances from the comfort of your own home. With technology's advancement, borrowing money has shifted from traditional brick-and-mortar institutions to digital platforms, making the process quicker and more accessible. However, navigating through this online landscape requires an understanding of how it operates. - read more
