No interest rate worries for Australian property buyers

Almost half of Australians said that their decision to enter the property market is not influenced by interest rates, a recent report found, which shapes as an important shift in the Australian property market.

The 2025 State of Real Estate Report, produced by InfoTrack, surveyed more than 130,000 buyers and sellers and found 45 per cent of those surveyed stated that interest rates “did not at all” influence their decision, while 8 per cent said it had “slightly” influenced their decision.

This is a significant change from just 12 months ago, when 62 per cent of people surveyed in last year’s report stated interest rates were a “major factor influencing their decision-making process”.

InfoTrack’s head of property Lee Bailie said that the findings of this report go against the established ideas currently in place about the Australian property market.

“The finding challenges the idea that interest rates are stopping people from buying or selling. Instead, Australians are shifting their approach – they’re staying active in the market, but they’re adapting to current conditions,” said Bailie.

The survey also highlighted a new, but not surprising, major concern for people looking at entering the market in its current state.

“Our data found affordability was the greatest obstacle to property transactions, not interest rates, with nearly a third (27 per cent) of participants citing property prices as their biggest hurdle. That represents a 6 per cent increase from 2024, and the largest rise across any challenge,” Bailie said.

“The data is further evidence of the affordability crisis. More than half (54 per cent) admitted property prices had a significant or major impact on their decision to buy or sell, while more than two-thirds of respondents (69 per cent) said price determined where they bought.”

Other key findings of the report showed that market conditions also proved to be a big factor, with 55 per cent feeling like they were pushed to act quickly due to price volatility, while 51 per cent felt pressure from competition.

Sixty per cent of those surveyed reported a positive experience with their transaction, saying that “everything went well”, while 42 per cent said it was a “stressful” or “extremely stressful” experience.