Is the Next Property Boom Around the Corner?

For the past two years, rising interest rates have been the fun police of the Australian property market. Borrowing power dropped, buyer demand cooled, and home values in many areas took a hit.

But change could be on the horizon.

If interest rates start to fall in 2025, certain housing markets could see a serious bounce back—especially the high-end property segments in Sydney and Melbourne.

How Much Could Property Prices Rise?

CoreLogic’s research suggests that for every 1% drop in the cash rate, national dwelling values could rise by an average of 6.1%.

But Australia isn’t one single property market. Some regions will benefit far more than others, based on their price points, location, and investor appeal.

Sydney & Melbourne: The Big Winners

Historically, high-end suburbs have been the first to surge when interest rates fall. Take Leichhardt in Sydney—when rates dropped in the past, home values in this inner-west hotspot jumped 19%.

Melbourne’s premium suburbs have also shown a strong reaction to rate cuts, particularly inner-city pockets where high borrowing power plays a big role in buyer decisions.

For buyers and investors, this means one thing: the window of opportunity could be closing fast.

Brisbane: A Market on the Move

Brisbane’s priciest suburbs—think million-dollar homes—are also expected to gain from a rate drop. Previous rate cuts have fuelled strong price growth in Brisbane’s inner and middle-ring suburbs, where demand is already high.

What About Perth & Adelaide?

Not every market will see a boom. In Perth and Adelaide, the connection between interest rates and property values has been much weaker.

Why? Because these cities have been driven by different factors—WA’s mining cycles and South Australia’s steady population growth have had a bigger impact on property prices than interest rates alone.

Are You Ready for the Shift?

If history is anything to go by, the next interest rate cut could supercharge certain housing markets.

The question is—will you be ready to take advantage of it?

📌 Do you have pre-approval in place?
📌 Are you in the right financial position to move quickly?

If you’re thinking about buying in the next 12 months, now’s the time to plan ahead. Let’s chat—send me a message and I’ll help you get ready for the opportunities ahead.