July 10, 2022

In The Press – Real estate experts predict apartment sales will go up as interest rates rise

News & Insights
Written by Angie Raphael for Sky News.
Real estate experts are predicting apartment sales will go up as interest rates continue to rise and people are forced out of the housing market.

As interest rates continue to rise, some real estate experts are predicting a boost in apartment sales across Australia due to the large gap between the median price of houses and units.

The Reserve Bank last week increased the cash rate target by 50 basis points to 1.35 per cent.

It also increased the interest rate on exchange settlement balances by 50 basis points to 1.25 per cent.

James Kirkland, the director of sales for national real estate agency Upside Realty, told NCA NewsWire buyer borrowing power was being reduced and it was being felt across the property market.

Mr Kirkland said he expected lifestyle apartments, which offered green spaces and amenities, would be especially seen as a viable alternative for those who could no longer afford a house.

“Since March 2020, capital city unit values have risen 9.8 per cent, compared to 24.7 per cent for houses, which makes them a more affordable option for people,” he said.