OMG, interest rates have hit a 15 year high… that’s not the story property investors should be watching.

Interest rates are dominating the headlines again.

And while the cost of borrowing matters today and is a “headline”, investors holding property with a long term focus need to also pay attention to the predicted rate cuts that are predicted by the major banks in H2 2027 – these current higher rates won’t be here for long. Instead investors looking towards 2027 should be paying attention to an even bigger and more important shift.

New and established property are increasingly operating under different conditions. Australia is facing significant constraints on the delivery of new housing. Labour shortages, rising construction costs and major infrastructure investment continue to put pressure on supply and the cost of producing new property.

At the same time, recent changes to the investment landscape, coupled with higher holding costs, are making cash flow an increasingly important consideration for investors.

So rather than only asking “What will interest rates do next?” I think investors should also be asking “What will the right property cost not only now but in 12 or 24 months’ time?”

For established property in the current easing market, there may be merit in waiting, negotiating and choosing your moment. But new property is different. Waiting for better market conditions rarely means that the same property will be cheaper to buy when you’re ready.