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Rate pause, Budget shock and the next move for Australia's property market

Rate pause, Budget shock and the next move for Australia's property market

Published 1 week, 4 days ago
Description

In this episode of the Australian Property Podcast, Pete Wargent and Chris Bates unpack a housing market that is trying to stabilise after the Budget shock, without much conviction that the hard part is over.

They start with the Reserve Bank holding the cash rate at 4.35%. Bond yields are off their peak, some fixed rates are edging lower, and buyers are asking whether confidence can rebuild. Pete and Chris explain why that does not guarantee a strong recovery while policy uncertainty, softer investor demand and weak sentiment still weigh on Sydney and Melbourne.

The episode then turns to what is changing on the ground. Investors are pulling back, upgraders are cautious, first-home buyers are getting a little more breathing room, and rents remain under pressure because vacancies are still tight. They also unpack stamp duty changes, buyer incentives and why mortgage stress is still more of a pressure story than a distressed-sales story.

Finally, they look ahead to late 2026 and 2027. If rates fall meaningfully, the market could find a new leg higher. If cuts stay modest, Australia may be heading into a slower, more balanced phase instead. It is a useful episode for buyers, investors and homeowners trying to work out what matters now and what noise to ignore.


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