RBA Rate Cut Spurs Property Market Surge

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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

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