Ipswich Property Market Set to Surge in 2025 After RBA Rate Cut Boosts Buyer Demand
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Ipswich Property Market Poised for Growth Following RBA Rate Cut
The Reserve Bank of Australia (RBA) yesterday announced a 0.25% reduction in the official cash rate, bringing it down to 3.85%. This move is expected to have a significant impact on the Ipswich property market, potentially driving up property prices in the region.
This is the second rate cut this year and follows a period of 13 consecutive rate hikes between May 2022 and November 2023. This easing cycle is expected to continue with the RBA adopting a more dovish tone, indicating openness to further easing if necessary. Governor Michele Bullock has highlighted substantial inflation declines and potential future easing.
Based on current projections, the RBA is expected to implement two to three more interest rate cuts in 2025, potentially reducing the cash rate to between 3.1% and 3.35% by year-end. This will translate to retail mortgage rates around 5% - 5.5%. The exact number and timing of these cuts will depend on evolving economic conditions, including inflation trends and global economic developments.
Implications for Ipswich Home Buyers and Investors
Ipswich, known for its affordability compared to Brisbane, is likely to experience increased demand as lower interest rates enhance borrowing capacity.
“Lower interest rates improve affordability and effectively increase how much buyers can borrow — a 1% rate cut typically boosts borrowing capacity by more than 10%. Buyers in the sub-$1 million price bracket tend to be particularly rate-sensitive, so a reduction of this size is likely to fuel further price growth in that segment of the market.”— Stuart Wemyss, ProSolution
As previously discussed, the expansion of the federal government’s First Home Buyer Guarantee (FHBG) effectively allowing all first home buyers to buy a property up to $1million value with a 5% deposit will also drive demand in the sub-$1million bracket. Previously, the scheme was capped at 35,000 places but the government now expects over 80,000 buyers to take advantage of the FHBG, equivalent to around 11% of all property purchases nationally, which means it’s likely to have a substantial market impact.
With Brisbane prices closing in on the million dollar mark more buyers will likely turn their attention to Ipswich’s more affordable market. “Brisbane will almost certainly be Australia’s next ‘million dollar’ house market of the capital cities, with a current median house value of $990,000.
Even if Brisbane house values rise half the rate that they did in the 2024 calendar year, they would hit $1,010,000 by the end of 2025.” (Eliza Owen-Corelogic)
These factors combined will likely see a surge in demand in the Ipswich market heading into 2026 and could lead to rising property prices. If you are thinking of buying it would be wise to act promptly if you are able to.
Remember: If you want to own property you have to buy property!
This content is for general information only and reflects personal opinion—not financial, legal, or investment advice. We do not guarantee its accuracy or completeness. Please consult a licensed professional, such as your accountant or financial advisor, for advice tailored to your specific circumstances.
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