October Interest Rate and Australian Economy

The Reserve Bank of Australia has decided that Australian economy needs help and have lowered the cash rate to 3.25%.

The Australian banks have also been able to access funds from other sources at a much lower rate than in recent years.

It appears that the resource rich states of Queensland and Western Australia are now starting to see a recovery in their Real Estate markets.

Western Australia is leading the way with a consistent rise in the demand for properties, mostly driven by the demands of the mining sector.

Western Australian mining is different to Queensland.

Western Australia has a greater proportion of their mines in remote uninhabited areas, crating a far higher proportion of ‘fly-in fly-out’ employees.

This has led to a demand for property near the airports and service centres.

In Queensland, Most of the mining staff live in nearby towns.

This has meant that many small rural towns are now experiencing booms in both rents and property prices.

Whilst the demand for property in the mote traditional areas of Qld has been slower in arriving that in WA the latest data shows a small increase in property prices in the Brisbane area.

There are still some bargains to be found and canny investors are quickly taking advantage of them.

Pundits are now forecasting a steady increase in demand for property with a resultant increase in property prices.