What $1 Million Buys You Now—and What the Latest Rate Cut Might Mean for Property Prices

By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia

There’s never a dull moment in real estate, and this week’s news has been packed with insights and opinions that got me thinking. Between CoreLogic’s deep dive into $1 million-plus properties and the RBA’s latest rate cut decision, it’s clear we’re in the midst of some significant shifts in the Australian property market.

Let’s start with the million-dollar question—literally.

According to CoreLogic, nearly 30% of Australian homes are now worth $1 million or more. That’s up from just 16% in 2019. In Sydney, it’s a staggering 57.3% of properties. Even on the Sunshine Coast, the number of suburbs cracking the million-dollar mark is growing quickly. This is partly a result of years of compounding price growth, but it’s also a reflection of something else I’ve been noticing for a while now—property wealth is growing, and it’s shifting the way people approach value.

What one buyer sees as fair market value, another—with greater equity built from years of growth—is happy to pay well above. This divergence in what people are willing and able to spend is widening. It’s one of the main reasons we’re seeing homes sell for eye-watering figures in some cases, and other seemingly similar properties sit on the market longer. The gap is growing, and so is the divide between those with equity and those trying to get their foot in the door.

Then there’s the latest move by the Reserve Bank. They’ve trimmed the cash rate again—just a 0.25% cut, thankfully, and not the 0.5% drop that NAB’s chief economist predicted last week. Personally, I think this was a smarter move. A bigger cut would’ve thrown fuel on a fire that’s already burning pretty hot. While I welcome the relief as a mortgage holder, the market still feels very active, and an aggressive move like that might have sent prices soaring too quickly.

Still, the cut is enough to make an impact. Just look at the data: after 13 consecutive rate hikes between May 2022 and November 2023, we’re finally seeing a little bit of easing. And while there’s talk of more cuts to come, I believe a slower, more measured pace is what we need right now.

On the ground, we’re already seeing the effects. Buyer enquiry spiked almost overnight. And locally, suburbs like Bli Bli are showing strong growth—up 7.2% year-on-year. Others are even higher. And that’s without a flurry of new listings or fresh government incentives.

Which brings me to affordability. It’s still the elephant in the room. The truth is, it’s tough out there for first-home buyers. Even with rate cuts, the gap between borrowing capacity and asking prices isn’t closing fast enough. Investors and owner-occupiers with equity are dominating right now—understandably, they’ve got the resources and the confidence to move. But what does this mean for the rest of the market?

It means more pressure on the rental market. As buying becomes harder for some, rental demand rises. The cost to build remains high, and new supply is sluggish at best. So more and more demand is being funnelled into established homes. Renovating isn’t cheap either, which is why we’re seeing A-grade properties—those that are well-presented and turnkey—attract top dollar, while fixer-uppers are taking longer to shift.

So where do we go from here? I think it’s going to be a fascinating second half of the year. More rate cuts are predicted. More people will come off the sidelines. And with stock still tight, that will likely mean more competition—and rising prices in areas like the Sunshine Coast where lifestyle meets limited supply.

If you’re thinking about your next move—whether that’s upgrading, downsizing, investing, or just wanting a clearer picture of your property’s value—I’m here to help. The market’s moving, and being informed is your biggest advantage.

Let’s chat.

If you’re thinking of buying or selling this year, it’s worth being prepared. Let’s have a chat. You can schedule a free consultation here. 

If you are in buying or selling mode I’ve also created this free resource – Sunshine Coast Home Sellers and Buyers Guide. 

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