How Australia compares internationally on home affordability and interest rates
It’s good news for foreign investors but presents challenges for local buyers and homeowners looking to step into, or move up in, the property market
2 min
Australian property has shown greater resilience against higher interest rates than many other real estate markets around the world, according to a new report. However, Australia has also not lifted its official cash rate as much as other countries during the global battle against inflation. Our cash rate of 4.35 percent is significantly lower than the United States’ rate range of 5.25 percent to 5.5 percent and only higher than a few nations such as France, South Korea and Japan.
Research by Australian real estate network PRD shows most property markets around the world have gone through the same market cycle since the pandemic ended. In most countries, there was a brief period of strong growth in home values as the world re-opened between 2021 and 2022, followed by declining prices as cash rates increased.
“Compared to other countries around the world, Australia has proved itself to be a more resilient market against successive cash rate hikes,” said PRD chief economist Dr Diaswati Mardiasmo. “Our property prices did not decline as sharply as New Zealand, Canada, Hong Kong, the UK, and South Korea.
“In terms of affordability, internationally, we sit in the middle. New Zealand, Canada, the USA, and Hong Kong are still more expensive than Australia, but the UK, South Korea, Japan, and France are more affordable.”
The report points out that this is one of the reasons why Australian property is still attractive to many international buyers and investors. For Australians, housing affordability has deteriorated by 15 percent over the past five years, according to the research.
“This means those who bought a property in the past five years are ‘worse off’ economically and in greater danger of mortgage stress, as opposed to those who bought property 10 to 20 years ago,” the report said.
Historically, it is unusual for Australian home values to rise at the same time as interest rates. This only occurred due to an imbalance between supply and demand. Dr Mardiasmo said other countries such as New Zealand, Canada, France, South Korea and Japan also have a housing supply deficit. Meantime, supply levels are improving in the UK, US and Hong Kong, she said.
For now, the Reserve Bank of Australia is holding the cash rate steady while monitoring the impact of its 13 rate rises between May 2022 and November 2023 on inflation. During a press conference earlier this month, Reserve Bank Governor Michele Bullock said a rate cut was unlikely this year.
Dr Mardiasmo said a stable cash rate creates a catch-22 in the market. “On one hand it provides stability, hence many believe that now is an ideal time to purchase. On the other, a stable cash rate has created ‘sticky buyers’ that no longer feel the need to rush …”.
Other countries are also keeping their cash rates steady, including Hong Kong, the US, New Zealand, the United Kingdom and South Korea. Some countries have begun cutting their cash rates, including Canada and France. Japan is the outlier after commencing a cash rate hiking cycle in March. This followed almost 14 years of negative or zero interest rates. The rate in Japan is now 0.25 percent.
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Atlas Real Estate is reimagining how people connect with property, combining listings, market insights, local stories and lifestyle content in one destination for those buying, selling or simply exploring the market.
4 min
Property has always been about more than buying and selling. A home can represent a fresh start, a long-term investment, an architectural idea or a connection to a particular neighbourhood. Even when people are not planning a move, many still enjoy following the market, researching local areas and discovering the stories behind remarkable homes.
Atlas Real Estate is responding to that wider interest by creating more ways for people to engage with property. Bringing listings, market information, local perspectives and lifestyle stories together, Atlas offers a destination for anyone curious about homes and the communities surrounding them.
It reflects the reality that people approach real estate with different needs and motivations. One visitor might be actively searching for a new home, while another may want to understand recent results in their suburb. Others might be keeping an eye on changing market conditions, exploring an unfamiliar area or simply appreciating thoughtful architecture and premium residential design.
At atlas.com.au, those interests meet in one place. Visitors can browse properties for sale and recent results, while also exploring market insights, featured homes, local stories and introductions to the people behind Atlas. The result is an experience designed to remain relevant before, during and after a traditional property transaction.
“We’re reimagining real estate around how people actually engage with property today — bringing together market insight, exceptional homes, local perspective and lifestyle in a way that feels more relevant and useful,” says Michael Coombs, Director of Atlas Real Estate.
That approach recognises that an interest in property rarely begins on the day someone decides to buy or sell. A future buyer may spend months learning about suburbs, monitoring prices and refining their sense of what they want. A homeowner might follow nearby sales to understand the changing value and character of their area. An investor may be looking for broader market context, while a design enthusiast may be drawn to an exceptional renovation or a distinctive piece of architecture.
By accommodating those different forms of curiosity, Atlas aims to make engaging with real estate feel less transactional and more connected to everyday life. Property is shaped by its surroundings: the streets, businesses, landscapes and people that give a place its identity. Understanding a home therefore means looking beyond its floor plan or sales history to consider the lifestyle and community that come with it.
This broader perspective also gives local stories a meaningful role. Suburbs are constantly evolving, influenced by new businesses, changing demographics, design trends and the people who choose to make them home. Content that explores these forces can help readers build a richer understanding of an area, whether they are preparing to move there or simply want to stay informed about their own neighbourhood.
The same is true of market information. Sales results and property data are most useful when they are accessible and supported by context. Bringing recent results together with insights and local knowledge can help people follow the market on their own terms, without suggesting that every visit must lead immediately to a transaction.
For Atlas, this thinking forms part of “Real Estate, Reimagined”, its broader brand campaign focused on using brand, creativity and technology to deliver a more relevant, useful and human real estate experience. Rather than treating technology as an end in itself, the emphasis is on how it can make property easier and more engaging to explore.
That human focus matters because real estate decisions are often closely tied to significant moments in people’s lives. A move may be connected to a growing family, a new job, a change in lifestyle or a long-held ambition. Even outside those milestones, homes and neighbourhoods remain a source of interest because they reflect how people live and how communities develop.
Atlas’s approach makes room for both the practical and aspirational sides of that interest. Readers can seek out information with a clear goal in mind or browse simply because a property, place or story captures their attention. In either case, they can move easily between homes, results, market perspectives and local inspiration.
The ambition is not to redefine why people care about property, but to reflect the many reasons they already do. By combining useful information with engaging editorial content, Atlas is creating a place for buyers, sellers, homeowners, investors and the property-curious alike.
Whatever brings you to property, discover more at atlas.com.au
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