Triple treat: REIQ welcomes third rate cut for 2025

The Real Estate Institute of Queensland (REIQ) is welcoming the Reserve Bank of Australia’s (RBA) decision to deliver the third cash rate cut of 2025 as the nation’s economic indicators point to weaker growth and reduced inflationary pressure.

REIQ CEO Antonia Mercorella said this cash rate cut of 25 basis points will reduce the official cash rate to 3.6 per cent, and builds on the RBA’s February and May reductions, creating a clear path to support households and stimulate broader economic activity.

“This third cash rate cut is a timely and necessary move by the RBA, given the subdued economic environment and moderating inflation,” Ms Mercorella said.

“The inflation rate is now well within the RBA’s target band of 2-3 per cent, with annual CPI inflation at 2.1% in the June quarter of 2025 and annual trimmed mean ‘core’ inflation at 2.7% – the lowest in almost four years^[1].

“Business conditions remain relatively weak and consumer confidence remains subdued, with gradual but restrained signs of recovery following last month’s surprising decision by the RBA to hold the cash rate.”

She said this rate cut would offer meaningful financial relief for Queensland homeowners.

“A variable mortgage holder with the average new owner-occupier loan in Queensland of $647,000 could save approximately $97 per month if lenders pass on the full 25 basis point cut.^[2]

“When combined with the February and May reductions, this amounts to a potential monthly saving of $293 – a significant boost to household budgets.

“Borrowers with larger loan amounts or shorter remaining terms may experience different levels of savings. For example, a full 25 basis point cut would reduce a mortgage of $500,000 and $1 million by $76 and $150 per month, respectively.”

Ms Mercorella said the cumulative effect of three rate cuts in 2025 would also substantially improve borrowing capacity.

“A single buyer earning an average income of $103,450 could now afford around $30,900 more, while a dual-income household with two children could see their borrowing capacity boosted by approximately $39,400,” she said.^[3]

“These increases could be the difference between getting onto the property ladder or remaining locked out of the market – particularly for first home buyers.”

Ms Mercorella said that while the triple cut provides relief, it must be complemented by action on the housing supply front to ensure affordability gains are not eroded.

ENDS

Media enquiries: Claire Ryan, REIQ Media Manager, M: 0417 623 723 E: media@reiq.com.au

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