Interest Rates & Regional Property Prices

Interest rates in Australia are finally  easing after a period of increases aimed at slowing inflation, and the Reserve Bank of Australia (RBA) recently signalled that further cuts may be on the horizon before the end of 2025. 

Lower rates usually mean cheaper borrowing, which can encourage more people to enter the housing market. However, the impact can differ between capital cities and regional centres.

Recent market insights for Rockhampton and beyond

Recent analysis from Cotality shows values are rising across every capital in Australia as the growth cycle warms up.

In the past when interest rates have dropped, attention has refocused on metropolitan areas and regional centres have stagnated. However, this doesn’t seem to be the case so far this year. 

Current demand in Rockhampton shows the market is still very active… fuelled by affordability and lifestyle appeal. Families, investors and first-home buyers have been seeking opportunities outside Brisbane and the rest of the south east, which is adding pressure to local supply.

There is even still interest from out of state buyers, who see the value in Rockhampton's ‘up and comer’ status.  

As explained in realestate.com.au, Rockhampton property prices have climbed quickly this year, and Allenstown, Norman Gardens town and Berserker are amongst the fastest growing suburbs in the country for unit prices. Meanwhile, Frenchville is up by nearly 15% and house values in The Range rose by 17.4% in the 12 months to August 2025. 

Looking ahead

From The Agency’s perspective, falling rates is likely to stimulate rather than dampen the market in Rockhampton. 

• For investors: It’s a good time to enter the local market ahead of growth in 2026 and 2027.

• For sellers: Buyers are increasingly active, especially with the Government bringing the 5% deposit scheme forward. Stock is still reasonably limited and homes are selling in a matter of days, particularly good quality family homes and nicely maintained Queenslanders.

• For buyers: Cheaper finance is finally available and the cost of living is easing. Anyone who has been waiting for the right moment may find it’s finally here. 

With Rockhampton poised for growth in the future, it’s hard to go wrong with a purchase… and easy to achieve a good outcome with a sale. 

The only risk to market buoyancy at the moment is renewed focus on Brisbane ahead of the Olympics. While it may ‘steal’ some Rockhampton buyers, the fact is that the average home in the Queensland capital is now exceeding $1 million. If you want more for your money, the regions are the place to focus as a buyer. 

What’s your next move? 

With interest rates falling, you may find an investment purchase is now possible, or you may decide it makes sense to pull the trigger and downsize while buyers have the money and are active.

If you purchased prior to the pandemic, regardless of the location, it’s likely you have experienced strong capital gains, so now could be the time to turn your asset into cash. 

Need some advice before you make a decision? The team at The Agency CQ are always ready to help. Give us a call to find out what your property is worth or for help to plan a purchase.