Today’s interest rate cut by the Reserve Bank is expected to supercharge property market activity this winter, according to Raine & Horne Executive Chairman Angus Raine.

The Reserve Bank has lowered the official cash rate by 25 basis points to 3.85%.

“Today’s rate cut will really get the market moving,” Mr Raine said. “It’s not about the calculation and whether it’s 25 or 50 basis points cut—it’s the confidence boost that matters.

“This is likely the first of several cuts before the end of the year. With listings on the rise in some capital city markets already and consistent buyer demand, even two or three more cuts could send market confidence into overdrive with a strong pre-spring market now in prospect.”

Green shoots emerge following February cut

Mr Raine observed that the market is already reacting to earlier monetary policy changes, with the February rate cut clearly having an impact on confidence in some markets. According to the latest Raine & Horne data, listings in Tasmania have surged by nearly 48% year-on-year, while buyer demand remains on par with this time last year.

Appraisal activity in Queensland has jumped by 44.38% while listing volumes are up 5.2%. “More importantly, total listing values are up 22.78%—a clear sign that experienced sellers can see the good times ahead,” Mr Raine said.

Rate cuts could accelerate momentum in industrial and office property markets

With industrial real estate continuing to perform stoutly and the office sector showing signs of recovery, further interest rate cuts could underpin improved confidence and transactional activity across Australia’s commercial property markets, said Chris Nicholl, CEO of Raine & Horne.

“The industrial market has remained a consistent standout, underpinned by e-commerce, logistics, and supply chain demand,” Mr Nicholl said. “Warehouses, in particular, are highly sought after by investors, tenants, and owner-occupiers due to their critical role in modern distribution networks.”

Mr Nicholl believes additional interest rate cuts—some experts are forecasting up to three more by May next year—could further stimulate commercial real estate.

“Lower borrowing costs will make commercial acquisitions more attractive, particularly for owner-occupiers and investors looking for long-term stability,” he said.

“We’re seeing a growing return-to-office trend reshape tenant expectations. Broadly speaking, investors and owner-occupiers are targeting buildings that tick multiple boxes—not just prime locations, but that are also energy efficient, and offer amenities that make workplaces more engaging,” Mr Nicholl said.

He adds that valuations are beginning to align more realistically with interest rate settings, unlocking opportunities for transactional activity in key CBD markets.

“Ongoing volatility in global share markets is also prompting a shift in capital toward quality commercial property, where yields remain solid, and the long-term growth outlook is strong,” Mr Nicholl said.