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The Time to Buy A Dwelling Index has taken off in the midst of three rate cuts, with preapproval applications surging. Picture: Jeremy Piper<\/p>\n
Three rate cuts have supercharged buyers, swarming banks in the biggest rush for home loans since the pandemic amid growing fears of a new property boom.<\/p>\n
After three 0.25 percentage point variable rate cuts in 2025 \u2013 and more expected \u2013 Aussie homebuyers are flooding banks to secure preapprovals, hoping to get into the market before property prices start to surge again.<\/p>\n
The rate cuts\u2019 boost to buying power has been so dramatic that someone with a combined household income of $200,000 can now qualify to borrow over $1 million, a threshold that was out of reach just months ago.<\/p>\n
MORE: $18k fine: Common bin act could cost you<\/a><\/p>\n Shock $234m peanut butter crunch hits Aus farms<\/a><\/p>\n CommBank says the rate cuts have lifted borrowing capacity by 7 per cent.<\/p>\n New CommBank data reveals the first two cuts alone sparked a 12 per cent jump in conditional home loan preapprovals, with the average amount people are applying to borrow up 13 per cent.<\/p>\n CommBank says the rate cuts have lifted borrowing capacity by around 7 per cent, sparking renewed activity from first home buyers, investors and upgraders alike.<\/p>\n The data coincides with PRD Nationwide\u2019s Time to Buy a Dwelling Index, which jumped 37 per cent nationally in the year to August \u2013 the biggest rise since before the Reserve Bank began raising rates in May 2022.<\/p>\n PRD chief economist Dr Diaswati Mardiasmo said \u201cbuyers are back. Like, properly back, not cautiously back, more like gung-ho back\u201d.<\/p>\n She expects rising demand to push markets to their highest levels since the pre-rate hike boom, especially in Queensland, New South Wales, Western Australia and Tasmania.<\/p>\n \u201cWith the third cash rate cut happening earlier this month and banks passing it on, we should see shorter days on market, higher auction activity, more first home buyers.\u201d<\/p>\n MORE: Hidden fortune: Aus cleaners\u2019 $15k, Banksy find<\/a><\/p>\n Aus landlord\u2019s epic council battle ends in demolition<\/a><\/p>\n PRD chief economist Dr Diaswati \u201cAsti\u201d Mardiasmo.<\/p>\n Some of the most eye-popping results came out of Tasmania where the Time to Buy a Dwelling Index skyrocketed 113.5 per cent year-on-year, though Dr Mardiasmo warned it was a volatile market prone to a \u201cpush pull dynamic\u201d.<\/p>\n Western Australia hit its highest level since November 2021, she said, up 39.2 per cent to 102.1 index points in August 2025. \u201cThis suggests price growth is imminent.\u201d<\/p>\n Sydney spiked 46.5 per cent to hit 100 points, Brisbane was up by 34.5 per cent to 97.1 points, its highest level since January 2022, and Melbourne grew 24.3 per cent to 103.2 points. <\/p>\n The \u201cbiggest surprise\u201d, she said, was South Australia, which grew only 4.3 per cent to 79.3 index points. \u201cThis creates a unique opportunity for first home buyers and investors.\u201d<\/p>\n MORE: Govt pays $3.3m for unliveable derelict house<\/a><\/p>\n<\/p>\n
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