As we await the RBA’s Monetary Policy Statement on 12th August, some of the following ‘green shoot’ indicators across the economy, residential and industrial property markets signal development opportunities for the prudent actor…
- The RBA is expected to cut the cash rate by 0.25% to 3.65% on 12th August and potentially again in November 2025
- Financial markets are currently pricing in a 98 % chance of a cut next week and anticipate two more reductions by early next year;
- National unemployment is forecast to increase only by 0.1% to 4.4% by the end of 2025 (source: ABS)
- National dwelling values continue to rise by 0.6% in July 2025 (in all capital cities)
- Sixth month of gains since the first rate cut in February 2025;
- Sydney’s medium value increased by 0.6% in July and 1.8% over the past quarter
- The top NSW capital city performance over the past 12 months:
- St Marys at 7.45%
- Fairfield at 7.0%
- Liverpool at 6.8%
- Brisbane’s medium value increased by 0.7% in July & Melbourne 0.4% in July.
- Regional NSW’s values increased 0.9% over the past quarter (source: Cotality Home Value Index August 2025)
- Positive industrial property indicators in Q2 2025 and Industrial investor confidence to accelerate
- Yield compression in Sydney (prime down to 5.4%) and Brisbane, reflecting increasing capital values at similar rental levels;
- Vacancy rates stabilise from historically high levels across Australia:
- Reduction of the new supply of projects compared to 2024;
- Prime vacancy rates (new 10,000m2 +) Western Sydney : 2.4% & Western Sydney: 2.0%;
- Retail sales increased by 4.2% in the 12 months to June 2025, which supports demand for industrial space; (source: Knight Frank Australian Industrial Review Q2 2025)
Feel free to contact me with any queries regarding the 2025 September development course series, as we ‘develop ‘ our skillset on the road to success…