RBA holds cash rate at 3.6%: What it means for property investors?
The Reserve Bank of Australia (RBA) has held the cash rate at 3.60% in its final decision for 2025. With inflation still sitting well above the RBA’s 2–3% target, interest-rate relief is still some time away. For investors, this means borrowing costs remain steady—but in a market already showing solid momentum, the next major uplift in demand and pricing is likely to arrive once inflation eases and rate cuts begin.
At McMullan & Bird, we see this environment as one that rewards informed, forward-looking investors who are keen to buy in the next 2 months.
Investor takeaways
- Short-term stability: Rates are on hold, but inflation remains high, so significant cash rates reductions are not expected until early or even mid-2026.
- Current market strength: With annual growth nearing 9%, the market is far from cooling.
- Long-term opportunity: When rates eventually drop, property prices will climb even faster.
Property market momentum
While the rate hold may feel like stability, it could be the “calm before the climb.” Once inflation eventually falls and the RBA begins cutting rates, property prices could accelerate even faster. For investors, this period of steady rates might be the last quiet moment before the market heats up again in the first half of 2026.
Even without rate cuts, the property market is showing resilience, and investors are feeling the impact on the ground. National home prices rose 0.5% in November, pushing annual growth to a strong 8.7%. This sustained growth highlights the ongoing imbalance between limited supply and strong buyer demand.
The RBA’s rate pause doesn’t signal a cooling market—it marks a period of consolidation before the next step up. With supply tight, demand firm, and long-term growth drivers in place, smart investors should use this window to position themselves ahead of the next cycle.
