Local agents say the increase in mortgage repayment interest rates will have little to no effect on Logan’s property market.
The Reserve Bank of Australia raised interest rates by 0.25% on Tuesday, 3 February, due to lingering economic inflation. It was the first rate rise since 202,3 and the cash rate now sits at 3.85%.
LJ Hooker estate agent Pragya Ojha said housing stock in Springwood was tight, and with few properties currently on the market, buyer demand was expected to continue.
“I think such a small increase will not have a substantial impact on buying and selling activity,” Ms Ojha said.
Mortgage holders are likely feeling nervous that this increase could be the first of a few, Ms Ojha said. But overall, she thinks the rate hike will have little impact on the market.
“If rate rises continue and people have mortgages on more than one property, then they could be forced to sell,” she said.
“But for others, 0.25% won’t have a substantial impact; people will still try to hold on.”
For mortgage holders of around $600,000 re-payments will increase by $100 a month, according to figures published in the Brisbane Times, as a result of the hike.
All major banks, including the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Australia and New Zealand Banking Group Limited, have adjusted their interest rates to align with the Reserve Bank’s rate rise.
Ray White principal Avi Khan agrees that rate rises are unlikely to cause any major shifts in Logan’s property market.
“Rate cuts don’t matter because it’s still the most affordable place for first home buyers and investors in the greater Brisbane area,” Mr Khan said.
“And we’re seeing strong entry-level demand from changes to state and federal government policy that is driving price growth even further.
“The ups and downs of real estate are no longer relevant to Logan; demand is always strong, which is defying usual real estate behavior.”
