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The third rate cut has made more suburbs affordable, opening opportunities for single- and dual-income households – here’s where Australians can now buy.
Following the third 25-basis-point rate cut from the Reserve Bank of Australia (RBA) to 3.6 per cent, its lowest level in two years, buyers have been left with an array of options to buy their next property.
Amid rising unemployment and cost-of-living pressures, the RBA’s rate cut provides home owners and investors with repayment relief and increased borrowing power.
According to Domain estimates, the new rates will lift borrowing power by $4,000 for single earners of $50,000, and by $49,000 for double-income households earning $400,000.
Finder’s data showed that following the cut, the average single Australian would now be able to afford a property worth $570,000 or less, while the average double-income earner can get a home around $1,167,000.
Finder’s head of consumer research, Graham Cooke, said the rate cuts have been making mortgages more affordable, opening up more suburbs for buyers to enter the market.
Since the third rate cut, single-income earners can now afford a house in Wyndham Vale (Victoria), where the average sales price reached $568,825.
Similarly, houses in Armadale (Western Australia) and Kirwan (Queensland) are now available for single households with a median sale price of $560,000 and $550,000, respectively.
For units, the average Australian on a single income can now afford suburbs like Bankstown, Penrith in NSW, and South Yarra in Victoria, with an average price under $565,000.
Couples with two average incomes now have more opportunities to buy a house in NSW, with Oran Park and Leppington suburbs under $1.1 million.
Similarly, dual-income couples can afford to buy more units in NSW suburbs like Chatswood, St Leonards, Pyrmont and Maroubra, while Burleigh Heads opened in Queensland.
Despite having more borrowing capacity, experts have been expecting the market price to climb, with the Commonwealth Bank forecasting a national growth of 6 per cent in 2025 and 4 per cent in 2026.
Cooke said that despite having more borrowing power and a lower interest rate, buyers will need a substantial deposit to secure their property.
“If lower borrowing costs drive increased market activity – as they have in the past – rising property prices and higher deposit requirements could ultimately outweigh the benefit of cheaper repayments,” Cooke concluded.
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