Confidence in the Australian property market has seen a significant boost over recent months, with the Australia-wide ‘time to buy a dwelling index’, which measures how many believe now is a good time to buy Australian property increased 10.6% to the highest level since September 2019, and the national ‘house price expectations’ index grew 31.5%. It was only earlier this year that we saw one of the sharpest declines in property market confidence, so we ask ourselves:

What is driving the confidence in the Australian property market..?”

This week we explore five key reasons that we’re seeing a significant uplift in property market confidence in Australia.

  1. Rate cut expectations

Widely held expectations are that the Reserve Bank of Australia (RBA) will see another rate cut on Melbourne Cup Day in November by 0.1% to 0.15%. While this may not sound like a significant decline, it will also likely lead to the bank’s cost of funding being made available to them will also be reduced, and both owner-occupier rates and investor rates can be cut even further.

We are already seeing owner-occupier rates break through the 2.0% mark, and many investor rates now in the low 2’s, which are also being made available to Australian expats. Over recent weeks, we have already seen interest-only investor rates for Australian expats as low as 2.29% through some lenders.

  1. Government stimulus set to continue

The latest Australian Federal Budget highlighted that the Australian Government is prepared to do what it takes to ensure that the Australian property market and economy remain sound. This includes job support payments for both existing and new jobs, payments for new apprenticeships and training programs, and a boost to the First Home Loan Deposit Scheme (FHLDS) for first-home buyers.

  1. Australia on a path to re-opening

It has become clear, at least to date, that Australia’s vast landscape coupled with our lifestyle has ensured that the country has fared much better than many of our friends in the northern hemisphere throughout Covid. It is now becoming evident that Australia is outlining plans to start re-opening state borders, as well as creating safe trouble bubbles with those countries that have low Covid case numbers and have the situation under control.

This re-opening points to immigration resuming in the medium term, as well as international student programs resuming, which will in turn drive further strong demand for Australian property.

  1. Job security confidence

The recent survey data displayed a significant boost in job security confidence also, with the index jumping to early 2019 levels with an increase of 14.2%. This job security is driving demand amongst potential home buyers, and property investors who will now have greater confidence about their ongoing cash flow and will be better prepared to submit offers on properties.

  1. Limited supply of dwellings

The listing numbers across most of Australia’s property markets are down relative to last year, which is understandable given the recent uncertainty that has been faced globally. This has led to sharp declines in vacancy rates, and strong demand for those quality dwellings that are listed for sale. Many buyer’s agents in quality areas have suggested that their buyers are prepared to often pay above and beyond the asking price in blue-chip areas just to secure the property.

Overall, current expectations are bullish for Australia’s property market, and look likely to continue.


LoanSuite Pty Ltd is your lending partner for all of your home loan, investment property, business and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.

Book an obligation-free, complimentary consultation here today.

LoanSuite Pty Ltd is an Authorised Credit Representative (Credit Representative Number – 494608) of My Local Broker (Australian Credit License – 481374). Important Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.