Brett Warren , National Director – Metropole Group
With the latest Consumer Price Index revealing a modest rise of 2.1% annually – Australia’s lowest since early 2021 – the tide might be turning for homebuyers and investors alike. For those sitting on the fence, this cooling inflation opens a window to act strategically.
While electricity prices spiked this quarter due to the fading impact of government rebates, key inflationary pressures such as transport and fuel have eased.
Automotive fuel alone dropped 10% over the past year, and that means better bottom-line affordability for us all. It’s a reminder that costs outside the mortgage matter.
Housing inflation nudged up 1.2% quarterly, largely from energy price shifts, but new dwellings saw just a 0.7% rise annually. Combined with softening rents and insurance hikes, these indicators suggest a stabilising environment for property investment – particularly for those who play the long game.
When it comes to homebuyers, upgraders can leverage calmer competition and more affordable borrowing to stretch into their next chapter – perhaps adding space, flexibility, or improved location.
Downsizers now have a valuable window to unlock equity gains by selling into a stabilising market and purchasing smaller, lower-maintenance homes while interest rates ease can free up substantial capital for lifestyle, investment, or retirement.
For investors, the value proposition is becoming even clearer. With trimmed mean inflation sitting higher than headline CPI, property continues to outperform as a hedge against economic shifts.
Goods inflation has dipped, and services inflation is easing – making tangible assets like housing a stable, long-term play. And with interest rate reductions sweetening borrowing conditions, it’s an opportune moment to re-enter or expand portfolios before competition reignites.
The bottom line? This isn’t about timing the market – it’s about reading the signals. And right now, they’re whispering opportunity.
