Gallery Group Logo

RBA Cuts Cash Rate to New Record Low .5 per cent, Housing Market Remains Strong

March 3, 2020

The Reserve Bank of Australia decided to reduce the cash rate to a new record low of 0.50 per cent. The board came to this decision in response to the economic impacts brought out by the coronavirus outbreak.

RBA Cash Rate
RBA Governor Rob Lowe

In his statement, Governor Philip Lowe said COVID-19 is “having a significant effect on the Australian economy.” He mentioned education and travel sectors are taking in big hits. There are still no signs of the virus being contained in the country. It is also too early to predict the magnitude and duration of these impacts. But, Lowe is confident that when the virus is contained in the country, the economy will pick up. “This outlook is supported by the low level of interest rates, high levels of spending on infrastructure, the lower exchange rate, a positive household consumption,” Lowe said.

Housing Markets Remain Strong

RBA Cash Rate
Melbourne's Land Market Sales Increase

Despite the coronavirus outbreak, housing markets in Australia are holding their grounds. In Melbourne, investors are optimistic that land market sales will continue to improve. According to RPM’s latest residential market review report, Melbourne’s land market increased to 3,185 (17 per cent) for the December quarter from the previous quarter. Furthermore, November last year recorded the eighth straight month of sales growth. Buyers and investors are “seeing more value in a block of land or a house and land package rather than an existing house - buyers are seeing value in land market given they can negotiate a well-priced largest lot,” according to RPM’s communities head Luke Kelly. Property optimism is also back on track and many investors are positive of price increase in the near future. In South East Queensland, majour cities are still recording affordable housing and strong capital investments. New majour infrastructures are also getting the green light mainly in Sunshine Coast and Brisbane. “There are further signs of a pick-up in established housing markets, with prices rising in most markets, in some cases quite strongly,” Lowe stated. Experts are expecting yet another cut by the RBA bringing the cash rate down to .25 per cent.

Latest news

Stay connected with the latest in Australian living

Why Upper Coomera offers strong growth prospects

Coomera and Upper Coomera represent incredible value compared to other areas in the Gold Coast, and the growth is expected to continue with one of the Gold Coast’s biggest transport improvements coming to the area.

The Gold Coast off the plan apartment market in a nutshell: What’s happened, and what the outlook looks like

Michele Bullock holds rates steady at first RBA rate meeting

Michele Bullock, the new RBA Governor, maintained rates at 4.1%. Inflation has risen, but experts predict potential rate hikes and future cuts, while house prices surge.
View all
Open page
Latest news

Stay connected with the latest in Australian living

Why Upper Coomera offers strong growth prospects

Coomera and Upper Coomera represent incredible value compared to other areas in the Gold Coast, and the growth is expected to continue with one of the Gold Coast’s biggest transport improvements coming to the area.
Read More
Open page

The Gold Coast off the plan apartment market in a nutshell: What’s happened, and what the outlook looks like

Read More
Open page

Michele Bullock holds rates steady at first RBA rate meeting

Michele Bullock, the new RBA Governor, maintained rates at 4.1%. Inflation has risen, but experts predict potential rate hikes and future cuts, while house prices surge.
Read More
Open page
View all
Open page