The RBA’s recent decision to lift the cash rate by 0.25 percentage points has reignited speculation around the impact on the property market.

The increase to 3.85 per cent, introduced to curb inflation, caught some by surprise, with few expecting a rise following an extended period of market stability.

Shifts in the cash rate, of any kind, always have an influence on the property cycle, but is this latest move a cause for concern in the Gold Coast market?

For established homeowners, particularly those with strong equity or existing fixed-rate mortgages, the impact of this minor rate increase will generally remain manageable.

Across buyer segments, however, the effect is more uneven. Price sensitivity tends to be most pronounced at the market entry level, while established buyers with more equity are far less reactive to single or multiple quarter-point changes.

It is important to understand that interest rate changes rarely trigger immediate, sharp price corrections. What they do is impact market sentiment, temper urgency and slow decision-making.

On the Gold Coast, this recalibration is occurring against a backdrop of limited housing supply, continued population growth, and persistently low rental vacancy rates, all of which continue to support demand.

Buyers are still prepared to pay top dollar for premium positioned properties or those in which they can see long-term gain.

Kollosche’s sale of a renovated two-bedroom apartment in an original beachside building in Miami last week is evidence of current buyers’ appetite. The apartment, one of six, attracted 96 inspections, 13 registered bidders and sold under the hammer for well above market expectation at $1,861,000. For comparison, the previous highest sale in the block was in 2019 for $620,000.

So, while buyers may be more deliberate in their purchases, they certainly aren’t stepping away from the market altogether.

Markets driven by lifestyle appeal and long-term fundamentals typically absorb incremental cost pressures more effectively than those driven by short-term speculation.

What rate rises will reinforce, now more than ever, is the importance of pricing accuracy, elevated property presentation, and a strategic marketing strategy.

At Kollosche, our experienced team of agents are experts in this market and can guide you on the best approach for positioning your home in the current interest rate environment.

Reach out to a Kollosche agent today for personalised service and advice.