Insights

The Reserve Bank’s decision today to cut the official cash rate by 0.25% is a welcome move for the real estate industry and for Victorians alike. After a period of economic uncertainty and market hesitation, this adjustment could be the catalyst needed to restore buyer confidence—particularly among investors.

Lower interest rates generally mean increased borrowing capacity and improved affordability, which may encourage both owner-occupiers and investors to re-engage with the property market. For Victoria, this comes at a crucial time. Investor activity in our state has noticeably declined, with many looking interstate due to higher yields, fewer regulatory hurdles, and broader market appeal elsewhere.

We hope today’s decision signals the beginning of a more favourable lending environment, and a shift in momentum for Victoria. If the rate cut translates into improved investor sentiment and greater buyer engagement, it could help reignite local demand and contribute to a healthier, more balanced market across Melbourne and regional centres.

At Hodges, we remain optimistic that this is the first step toward renewed confidence in Victorian property, and we’re here to support buyers, sellers, and investors as they navigate the opportunities this rate change may present.

It may be time to talk to your bank about pre-approval and watch the property market carefully.