QLD property to benefit from rate cut, REIQ says

By Amanda Shannon

Owners of Gold Coast property may welcome the news that interest rates have been cut by 25 basis points to three per cent.

The Reserve Bank of Australia made the decision to reduce the cash rate to prop up the slowing economy.

The Real Estate Institute of Queensland (REIQ) said that the residential market can only benefit from this change – with 2012 having shown improvement through greater sales of homes and units.

REIQ CEO Anton Kardash said these rate cuts are boosting confidence within the market and that the economy will benefit coming into Christmas.

He commented: "The Queensland market has been improving throughout this year, which can partly be attributed to lower interest rates.

"More importantly, though, confidence levels have improved and pent-up demand is starting to be released through increased sales activity."

Demand is also increasing in some areas due to easing financial conditions, which is restricting the availability of stock. This is also compounded by the fact that people who needed to sell because of higher interest rates are no longer in that position.

RBA notes from their meeting on December 4 indicated that further interest rate cuts are possible.

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