A fresh dive in inflation has set the stage for multiple interest rate cuts in the coming months, creating new opportunities for home buyers and property investors alike.
Inflation Falls Across Key Sectors
According to the Australian Bureau of Statistics, headline inflation eased to 2.1% in May, with underlying inflation at its lowest in nearly three years. Prices across several sectors—including construction, food, and insurance—have dropped noticeably. Building costs rose just 0.8%, a five-year low, and rental inflation has slowed for five straight months.
This data, combined with a cooling jobs market and subdued economic growth, has led economists at Commonwealth Bank and AMP to forecast successive rate cuts in July, August, and even November.
Housing Sector Poised for Lift
With borrowing costs expected to fall, home buyers may soon find increased lending capacity and improved affordability. Commonwealth Bank predicts the RBA will reduce the cash rate to a more neutral 3.35%, with AMP suggesting it could drop to 2.85% by early 2026.
This environment is especially favourable for first-home buyers and those seeking to refinance. Rodney McLoughlin notes that with reduced mortgage pressure and greater confidence, buyer momentum is likely to accelerate in high-growth suburbs.
NSW Property vs Super: A Surprising Showdown
Meanwhile, Finder’s latest research reveals over 200 NSW suburbs have outperformed Australia’s best-performing superannuation funds over the past decade. With some properties in suburbs like Millfield, Clareville, and Lockhart delivering 11–16% annual growth, property remains a powerful tool for long-term wealth creation.
Rodney McLoughlin highlights the importance of viewing property as a strategic, long-term investment rather than a speculative short-term play. With leverage opportunities and flexibility, real estate offers advantages that traditional super investments often can’t match.
Strata Inspection Fees Spike
In less welcome news, NSW apartment buyers are facing nearly double the costs to inspect strata records—from $31 to $60 for the first hour. This comes amid ongoing concerns around transparency and defect risks in strata buildings. McLoughlin advises prospective buyers to factor these rising due diligence costs into their budgets early in the purchasing process.
Final Thoughts
As inflation cools and the RBA leans towards further easing, Australia’s housing market is poised for another potential upswing. With careful guidance and informed strategy, buyers and investors can take full advantage of the shifting landscape.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 27 June 2025.
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
