Australian Property Markets Face Shallow Downturn Following Interest Rate Cut

Experts predict stabilization in Sydney and Melbourne housing markets after the Reserve Bank reduces the cash rate to 4.1 percent.

Sydney property prices have declined by 1.7% over four months, a faster pace than the 2017-2019 downturn but less severe than the sharp 12.4% drop in 2022-2023.
Melbourne's property values have fallen 3.9% over 10 months, a more gradual decline compared to the 7.9% drop during the 2022-2023 downturn.
The Reserve Bank's recent interest rate cut is expected to stabilize housing markets, with experts cautioning against expecting immediate or significant price growth.
Economists anticipate modest improvements in buyer sentiment and borrowing capacity, though further rate cuts are not guaranteed in the near term.
Housing affordability challenges persist, with Sydney's median house price at $1.47 million, nearly double the median unit price, while Melbourne benefits from relatively higher affordability.