Winter Update on the Economy, Housing Affordability & What’s Ahead

As the cooler temperatures begin to set in, we’re reminded of how fortunate we are here on the Gold Coast. While much of the country prepares for the harsh bite of winter, we’re enjoying our signature mild and beautiful season—just another reason so many choose to call this place home.

This month, I’d like to share two key updates that are shaping the conversation around our economy and property market.

Economic Growth Slows, but Hints of Positive Change

The latest GDP figures, released just over a week ago, revealed that the Australian economy grew by just 0.3% in the March quarter, with a modest annual growth rate of the same figure. What’s concerning is that this growth was largely driven by household spending on essentials such as electricity and gas—not exactly the kind of economic activity we want to be relying on for national growth.

There were, however, some bright spots. Private sector investment was up, led by gains in housing, construction, mining, and manufacturing. Still, these figures underscore that the economy is teetering close to negative growth, a scenario that’s been looming for some time.

This context explains the recent move by the Reserve Bank of Australia, where there was considerable internal debate over whether to reduce interest rates by 0.25% or go as far as 0.50%. That kind of discussion signals a meaningful shift in monetary policy, raising hopes that further interest rate cuts could be on the horizon in the next 12 months.

A Glimmer of Hope in Housing Affordability

In more positive news, housing affordability in Australia improved for the first time in a year during the March 2025 quarter. Loan repayments now account for 48% of the median family income—a 2-percentage-point improvement from the previous quarter. While that’s still higher than ideal, it’s worth noting this is the most significant quarterly improvement since March 2016.

The improvement was seen across all states and territories—except the Northern Territory—and can largely be attributed to two factors:

• Rising median family incomes, which now sit at $2,561 per week (up 1.1% from the previous quarter and 4% higher year-on-year), and

• Falling interest rates, which helped reduce average monthly loan repayments by 2.9%, now sitting at $5,323.

Renters, too, saw modest improvements in affordability for the second consecutive quarter—with the exception of Queensland. Our continued population growth here has increased demand for rental properties, driving up rents. While this presents challenges for tenants, it’s a positive for property investors and landlords, helping to offset the rising costs of holding an investment property.

It’s also encouraging to see first home buyers maintaining a strong presence in the market, making up 35.7% of all owner-occupier dwelling loan commitments, despite a 1.1% year-on-year decline.

That said, a note of caution: as interest rates continue to fall, we are likely to see property prices strengthen, which could put additional pressure on household budgets and erode some of the recent affordability gains. For those considering entering the market, current conditions represent the most favourable we’ve seen in years—but they may not last.

Important Change: New Seller Disclosure Laws from August 1

Looking ahead, one crucial change for Queensland property owners is the introduction of new Seller Disclosure requirements, taking effect from 1 August 2025. In line with other Australian states, sellers will soon be required to provide more comprehensive information about property defects and any issues buyers should be aware of.

This represents a significant departure from the traditional “buyer beware” approach and adds new layers of responsibility for sellers. If you’re planning to sell after August, it’s important to understand these changes to avoid surprises. Please don’t hesitate to reach out to our team at if you’d like more information or support in preparing.

As always, we look forward to welcoming many of you to the Gold Coast during the winter school holiday period—a time when our sunshine offers a much-needed escape from the southern chill.

Until next time, stay well,
Andrew Bell

Andrew Bell, OAM
Chairman
The Ray White Bell Group