Interest Rates: Another Hurdle for the Property Market
The reality on the ground is not nearly as gloomy as some media headlines suggest, writes Ian Pepper in this ad partner content with Pepper Real Estate Agency HQ
On Melbourne Cup Day, the only certainty wasn’t the favourite – it was another interest rate rise! Five increases in 2026, with the official cash rate now at 4.85%.
While the Reserve Bank continues its battle against inflation, one must question the role of excessive government spending in fuelling the very problem it’s trying to control. Unfortunately, mortgage holders and the property market are again being asked to carry much of the burden.
Locally, we’re certainly seeing the effects. Buyers are more cautious, borrowing capacity has tightened, and several recent sales have fallen below initial vendor expectations.
However, the reality on the ground is not nearly as gloomy as some media headlines suggest.
Well-presented properties, realistically priced, continue to attract genuine buyers and achieve respectable results.
Our coastal market remains desirable, supported by lifestyle, limited supply and long-term demand.
As for the Melbourne Cup, picking the winning horse might be easier than predicting the next interest rate move!
This ad partner content was provided by Pepper Real Estate Agency HQ director Ian Pepper, a proud supporter of independent local news.
Ian Pepper has had a long and distinguished career as a finance and real estate professional. Originally trained as a Chartered Accountant in 1995, Ian worked in Sydney and London. He has an MBA from Macquarie Graduate School of Management and now sells real estate with Pepper Real Estate Agency HQ. Ian also volunteers with local community groups including school P&Cs, sporting clubs and business chambers. Follow Ian on Facebook and Instagram
