How the Brisbane Property Market Is Reacting to Interest Rate Changes
With the Reserve Bank of Australia cutting interest rates by 0.25% — bringing the cash rate down to 3.85% — we’ve seen a fresh wave of movement and optimism in the Brisbane property market.
But what does that actually mean for you? Whether you’re a buyer, seller, investor, or just watching from the sidelines, here’s what we’re seeing on the ground at Place Bulimba
What We’re Noticing Right Now
Let’s get straight to it — things are picking up. At Place, we’ve seen an increase in open home traffic, buyer inquiries, and renewed motivation from sellers who had been sitting tight.
As CoreLogic recently reported:
“The rate cut, alongside improving consumer sentiment, is likely to support increased housing activity.”
It’s encouraging, but it’s not a return to runaway growth just yet. Buyers are still cautious, and affordability remains a big factor.
Conversations We’re Having with Buyers
Since the announcement, we’ve had more conversations with buyers who feel like the door to opportunity just opened a little wider. With borrowing power potentially increasing, people are starting to revisit pre-approvals and rethink what’s possible.
That said, there’s still competition — particularly at the entry and mid-tier levels of the market. As observed by Shannon last weekend:
“There’s no question that confidence is back, but buyers are still doing their homework. They want value, not just hype.”
We’re seeing families upsizing locally, investors returning after a pause, and first-home buyers weighing their options carefully.
But What About Affordability?
Let’s be real — lower interest rates are a double-edged sword. While monthly repayments go down, it can also mean rising property prices, making it harder for first-home buyers to get in.
Some financial experts are concerned this may push prices up without solving the bigger issue: affordability. That’s something we’re watching closely, especially in suburbs like Morningside where buyer demand is strong but so is price sensitivity.
Here’s a key insight from CoreLogic about how the rate cut affects repayments:
“Borrowers are likely to benefit from this move through lower mortgage rates. The average variable rate for outstanding owner-occupier loans is expected to fall to around 5.81%, reducing repayments on a $750,000 loan by approximately $81/month.”
That $81 monthly saving may not sound huge on its own, but over the year, that’s almost $1,000 back in your pocket — and importantly, it can also increase your borrowing capacity.
When lenders re-assess what you can afford at this lower rate, many buyers could potentially borrow $50,000 to $75,000 more — especially dual-income households with strong financials.
Of course, borrowing more doesn’t always mean you should. It’s important to make decisions that fit your budget and long-term goals.
Where Are the Opportunities?
At Team Harvey, we’re seeing solid interest in lifestyle suburbs close to the CBD, particularly in areas with great schools, cafes, and transport links.
Suburbs like Hawthorne, Balmoral, and Bulimba are still very much on the radar for both local buyers and interstate movers looking for that perfect mix of lifestyle and long-term growth.
CoreLogic data supports this, too — with suburbs across Inner Brisbane showing resilience and even potential for moderate price growth as the rate cut flows through.
What Happens Next?
In short: we’re in a healthier, more balanced market.
The rate cut is helping restore confidence, but it’s not an overnight boom. Price growth may tick upward, but we’re still expecting a more measured, sustainable pace — which, to be honest, is a good thing for everyone.
As CoreLogic put it:
“A significant acceleration in property prices is unlikely until affordability improves.”
So, if you’ve been waiting for the “right time” — this could be it. The market is active, conditions are favourable, and there’s opportunity on both sides of the fence.
Final Thoughts from the Place Team
From our front-row seat at Place Bulimba, we’re seeing a renewed energy in the Brisbane market. Whether you’re looking to buy, sell or invest, now’s a great time to check in with your local agent and talk strategy.
We’re here to help you navigate these changes with clarity and confidence — and if you’re just curious about what your property might be worth in this new climate, we’re always happy to provide a free, no-obligation appraisal.
Here’s to smart decisions and exciting moves,
— Shannon & Team Harvey