The Reserve Bank of Australia's decision to leave interest rates on hold at 4.35% is welcome news for the property market and provides buyers, sellers and investors with some much-needed relief after a turbulent first half of 2026.

The market has spent much of the year digesting a double-barrelled shock. Borrowers have had to contend with three interest rate increases, while investors have been assessing the implications of the Federal Government's proposed changes to negative gearing and capital gains tax outlined in last month’s budget.

Against that backdrop, today's decision by the RBA offers reassurance that the current interest rate tightening cycle may be drawing to a close. One of Australia's major banks is even forecasting that the next move in official rates could be down as inflation eases and economic growth moderates.

There are also encouraging signs offshore. News of a ceasefire in the Middle East and the prospect of oil supplies and global shipping routes returning to more normal conditions should help reduce inflationary pressures over time.

For the property market, however, the spectre of changes to investment property taxation continues to hover, although periods like this have often created opportunities for experienced investors.

As Angus Raine, Executive Chairman of Raine & Horne, recommends, now is far from the time to throw the baby out with the bathwater, and the current environment provides savvy property investors with a window of opportunity between now and the next election, due in the winter of 2028[i].  

"This is the classic counter-cyclical play. This is what the smart money does,” he said.

"No matter whether you're a first-time investor looking at an apartment or an experienced investor considering adding a small block of units to your portfolio, the period between now and the next election represents a great window of opportunity to enter the residential property market while others sit on the fence."

Angus said it was important not to lose sight of the fact that Australia's housing market is built on powerful long-term fundamentals. "The most successful property investors tend to think in decades, not election cycles," he said.

"Governments come and go, but quality property held for the long term has consistently rewarded patient investors."

Also, Angus urges people not to forget that almost 70% of Australia's estimated $12.8 trillion residential property market[ii] is made up of owner-occupiers[iii], who are unaffected by the proposed changes to negative gearing and capital gains tax. At the same time, population growth continues to outpace the supply of new housing, adding further pressure to an already undersupplied market.

"Australia still has a chronic shortage of quality housing and a growing population," he said.

"Those are the factors that have underpinned residential property values for decades, and they are not changing any time soon."

For investors, Angus believes the current environment calls for perspective rather than panic.

"Don't make an investment decision based solely on tax policy. Seek advice from your accountant, understand your own circumstances and focus on the long-term drivers of value such as supply, demand and population growth.”

If you’re considering making a real estate move this winter, contact your local Raine & Horne agent today. And if finance is part of your plans, contact the team at Our Broker on 1800 913 677 to organise your home loan pre-approval.

[i]https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Research/FlagPost/2025/August/When_is_the_next_federal_election

[ii] https://www.realestate.com.au/news/aussie-housing-market-reaches-12-8-trillion-as-growth-slows/

[iii] https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure