RBA Rate Rise: A Buyers Agent Perspective

In a widely anticipated move, the Reserve Bank of Australia has increased the official cash rate by 25 basis points, lifting the target rate from 3.60% to 3.85% - the first rate rise in more than two years.

While headlines naturally focus on affordability pressure, from a buyer’s-agent perspective this decision is less about panic and more about positioning.

Rate rises don’t stop Sydney property markets - they change behaviour and often create better conditions for well-informed and disciplined buyers.

What We’re Seeing on the Ground

As Buyers Agents operating daily across Sydney’s premium and tightly held suburbs, here’s what has changed - and what hasn’t - following today’s decision:

Competition Thins at the Margins
Higher rates tend to remove buyers who were stretching. Demand doesn’t disappear, but emotional competition softens - particularly at auctions and early-stage campaigns.

Quality Still Sells -Secondary Stock Doesn’t
Well-located, well-priced homes continue to attract strong interest. By contrast, compromised properties or aspirational pricing are already seeing longer days on market and greater vendor flexibility.

Finance-Ready Buyers Gain Quiet Leverage
Buyers with updated pre-approvals and financial clarity are increasingly favoured by agents and vendors. In a higher-rate environment, certainty carries real weight.

How We’re Advising Buyers to Act
This is not a time to step back- it’s a time to tighten strategy.

Re-check Borrowing Capacity Immediately
A 0.25% rate increase can materially affect serviceability at the margin. Buyers should reassess budget snow, not mid-negotiation.

Be Selective, Not Hesitant
We’re advising clients to stay disciplined on quality and value — avoiding reactive decisions but acting decisively when the right asset appears.

Use Conditions to Negotiate, Not Delay
Higher rates subtly shift negotiating dynamics. For prepared buyers, this often translates into improved pricing, better terms, longer due-diligence windows, or access to discreet off-market opportunities.

Act During the Adjustment Phase
Markets adjust gradually after rate rises. While some prices may soften, buyers who move strategically during this adjustment phase often secure better outcomes before competition returns.

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The SydneySlice View

From a buyers agent standpoint, today’s rate rise is not a signal to retreat - it’s a signal to buy with precision.

Sydney remains a structurally undersupplied market, particularly across blue-chip suburbs where long-term fundamentals are strong. What has changed is the tempo of the market - and tempo creates opportunity for buyers who are prepared, informed, and well advised.

We believe the coming months will reward buyers who understand when to lean in - and when to walk away.

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Considering a purchase in the current market?
At SydneySlice, we help buyers navigate changing conditions with strategy,discipline, and negotiation strength, not emotion, so they secure the bestpossible outcome.