Where Australia’s Property Markets Are Heating Up and Cooling Down – June 2025 Update

Where Australia’s Property Markets Are Heating Up and Cooling Down – June 2025 Update

Interest rate cuts are reshaping Australia’s housing market. From rising prices in inner Melbourne and Newcastle to cooling growth in WA and Queensland, we break down which regions are heating up — and which are slowing down.

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May 2025 Interest Rate Drop
Ilya Shteinberg Ilya Shteinberg

May 2025 Interest Rate Drop

In May 2025, the RBA cut the cash rate to 3.85%—its second reduction this year—citing easing inflation and improved economic conditions. While the move offers relief to borrowers, it reduces returns for savers and may drive up housing prices by boosting borrowing capacity. The RBA remains open to further cuts but urges action on housing supply to balance growing demand.

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