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Interest Rate Predictions: What Australian Borrowers Can Expect

Australia's rental market continues to face intense pressure as the housing shortage drives competition and pushes many residents toward more affordable regional areas.

Migration Impact

Net overseas migration contributed 446,000 people to Australia's population in the year ending June 2024. While this figure is moderating from peak levels, the continued population growth is maintaining pressure on both rental and purchase markets.

Regional Shift

The rental crisis in major cities is driving a significant demographic shift, with many Australians relocating to regional areas where housing remains more affordable. This trend is creating new growth corridors and investment opportunities outside traditional capital city markets.

Investment Implications

For property investors, the tight rental market presents both opportunities and challenges. While rental yields are improving in many areas, increased regulations and taxes in some states are affecting investor sentiment.

Policy Response

State and federal governments are implementing various measures to address rental affordability, but supply constraints mean market pressures are likely to persist through 2025 and beyond.

Relevant Articles

SMSF Property Investment Opportunities Emerge

Self-managed superannuation funds (SMSFs) are finding new opportunities in the property market as interest rates fall and rental yields improve across key markets.

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Refinancing Surge Expected as Rate Cuts Gain Momentum

Australian borrowers are preparing for a potential refinancing boom as interest rate cuts create opportunities to secure better loan terms and reduce mortgage stress.

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RBA Rate Cuts Drive New Optimism in Australian Property Market

The Australian property market is experiencing renewed optimism following the Reserve Bank of Australia's second interest rate cut of 2025

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Australian Property Prices Forecast to Continue Rising Despite Affordability Concerns

Despite ongoing affordability challenges, Australian property prices are forecast to continue their upward trajectory through 2025, driven by fundamental supply and demand imbalances.

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