As mortgage brokers in Perth, one of the most common questions we’re being asked right now is:
“If there are future rate cuts, will Perth property prices rise?”
It’s a great question — and the answer involves understanding how interest rates interact with housing demand, buyer confidence, and Perth’s unique market conditions. With the Reserve Bank of Australia (RBA) expected to cut rates this week, it’s worth unpacking what this could mean for the Perth property market and whether now is a smart time to buy or refinance.
Why Interest Rate Cuts Matter for Property Prices
Interest rates are one of the most powerful levers in the housing market. Here’s why:
- Lower interest rates reduce borrowing costs, making home loans more affordable.
- This increases buyers’ borrowing power , allowing them to offer more for properties.
- Demand rises, especially among first home buyers and investors, which can push prices up.
In simple terms: when money is cheaper to borrow, more people enter the market — and competition tends to drive prices higher.
But Will That Happen in Perth?
That’s the key question — and the short answer is: it’s possible, to an extent — but it’s not just about interest rates.
Perth’s property market has already seen strong growth over the past 18 months, driven by:
- A tight rental market
- Interstate migration from higher-priced markets
- Lack of housing supply, especially in new developments
- A relatively affordable median house price compared to Sydney and Melbourne
- If the RBA cuts rates, that could add further fuel to Perth’s already rising market, especially in suburbs with limited stock and strong lifestyle appeal.
Will One Rate Cut Be Enough?
This week’s anticipated 25 basis point cut may not cause an immediate surge in prices. However, it could set the tone for market sentiment — especially if buyers believe more cuts are coming or that this is a limited window of lower borrowing costs.
That said, the RBA has signalled that more cuts are not guaranteed, particularly if inflation remains stubborn or global pressures (like rising tariffs and fuel costs) impact the economy. In fact, some industry pundits are now speculating that rate hikes could potentially be back on the table.
So while a rate cut might spur some extra buyer activity in the short term, it won’t lead to runaway growth — especially if economic uncertainty keeps a lid on confidence.
Perth Suburbs Most Likely to See Price Pressure
If demand rises due to lower rates, expect strong price competition in:
- Entry-level suburbs (Balga, Armadale, Gosnells) where first home buyers are active
- Lifestyle locations (Scarborough, Fremantle, South Perth) attracting upsizers and professionals
- Tight-supply areas (Willetton, Leeming, Duncraig) where listings remain low
What Does This Mean for Buyers and Refinancers?
Whether you’re looking to buy, invest, or refinance in Perth, here’s what to keep in mind:
For Buyers:
- You may face more competition, so be prepared with pre-approval
- Interest rate cuts can increase your borrowing power — but make sure the repayments are still comfortable if rates rise again
For Refinancers:
- Now is a great time to review your home loan
- Even a small rate cut can lead to big savings, especially if you’re currently on a rate above 6%
- Most refinances are on variable rates, so you can still benefit from future rate cuts
The bottom line? Yes, rate cuts can drive Perth property prices — but only as one part of a bigger picture. The local market’s growth will still depend on supply, confidence, and broader economic trends.
Whether you’re entering the market or simply want to make sure you’re on the sharpest home loan rate, working with a mortgage broker in Perth can help you stay one step ahead.
Need Advice on Refinancing or Buying in Perth?
Get in touch with our team for a free discovery call. We’ll assess your borrowing capacity, deposit requirements, compare lenders, run the numbers, and help you make a confident decision — whatever the market does next.
📞 Book your discovery call today
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
