Despite early predictions that a cut would not occur until late in the year, the latest K Property Insights report, compiled by Kollosche in conjunction with leading analyst Michael Matusik, predicts that the first fall could come as early as May.

The report suggests that six rate cuts of 0.25 per cent could be possible from mid-2024 to the end of next year, sending the current rate of 4.35 per cent spiralling to 2.85 per cent.

While Gold Coast property has remained relatively resilient in an environment of prolonged rate rises, the local market will see benefits once the rate begins to fall.

The latest data from CoreLogic shows house prices are already on the rise again, following a period of readjustment which has led to a return in market confidence.

A cut in interest rates will serve to boost confidence further, with greater serviceability on loans stimulating the upper end of the market.

At the lower end, a rate cut will alleviate the stress on some homeowners, who may have been feeling the pressure to sell. As more people hold onto their homes, the already restricted availability of stock will tighten, further shoring up house prices.

Investor activity in the market will also ramp up as lower loan rates entice this group of buyers back into the market. This will have a positive effect on the rental sector, freeing up housing stock and going some way to easing the Gold Coast’s housing crisis.

In the development space, falling rates will make funding more affordable, which will be a financial win for developers who have faced soaring labour and construction costs since the pandemic.

Kollosche advises those who are thinking of buying in the coming year to act now, as house prices will only continue to rise as rates fall.

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