The final month of 2025 delivered a busier-than-usual property market news cycle. Here's what mattered and what it means for borrowers.
First, the RBA held rates for the fifth consecutive month but signalled cuts are increasingly likely in the first half of 2026. For buyers on the fence, this is the moment to get a pre-approval locked in — by the time rates actually fall, lender assessment queues lengthen and competition at auctions intensifies.
Second, APRA confirmed the 3% serviceability buffer stays in place. Good for lender prudence, frustrating for buyers: it means your assessed borrowing power is calculated at 3% above the rate you'll actually pay. For most borrowers that shaves 10–20% off the number they see on a bank website.
Third, Sydney and Melbourne listings hit their highest December volumes in four years, with clearance rates holding firm. Translation: there's more to choose from, and you don't have to rush. Take the extra time on due diligence.
Fourth, stamp duty reform is back on the political agenda in NSW. No legislative change this quarter, but worth tracking — a shift to annual land tax could meaningfully change the upfront math for first home buyers.