How Interest Rate Cuts Could Impact the Illawarra Property Market in 2025

As of May 2025, the Reserve Bank of Australia (RBA) has maintained the cash rate at 4.10%. However, major banks anticipate significant rate cuts in the coming months. National Australia Bank (NAB) forecasts a 50 basis point cut in May, followed by additional reductions, potentially bringing the rate down to 2.6% by February 2026.

While Sydney and Melbourne's high-end markets often react strongly to rate changes, the Illawarra property market—including areas like Kiama, Gerringong, and Shellharbour—is also poised to benefit.

Illawarra Property Market Changes: Implications for Homeowners and Investors

• Increased Borrowing Power

  • Lower interest rates enhance buyers' borrowing capacity, enabling them to consider higher-value properties or enter the market sooner.

• Rising Demand

  • As financing becomes more accessible, demand for properties in lifestyle-rich regions like the Illawarra is expected to grow.

• Focus on Quality Builds

  • Buyers are prioritising well-designed, high-quality homes that offer long-term value, making now an opportune time for renovations or new constructions.

Strategic Moves for Homeowners and Investors

• Build Your Dream Home

  • With improved affordability, it's an ideal time to design and construct a home tailored to your family's needs.

• Renovate to Increase Value

  • Upgrading your property can enhance its appeal and value, positioning it advantageously as the market strengthens.

• Invest Wisely

  • Quality renovations or new builds can maximise your property's potential, attracting buyers or tenants seeking premium homes.

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 How EDM Building Can Assist

At EDM Building, we specialise in bespoke home renovations and high-end builds that align with the evolving needs of homeowners in the Illawarra. Our services ensure your project is:

• Structurally Sound

• Financially Strategic

• Designed for Long-Term Value

  
  

Prepare for the Market Shift

With anticipated interest rate cuts and increasing buyer activity, now is the time to plan ahead. Our pre-construction services guide you from concept to completion, ensuring your project is both financially and structurally sound.

Book a consultation today and let's discuss how to capitalise on these market changes for your home or investment.