The Lending team at Liston Newton has seen an increase in borrowing activity during 2025 and this been across multiple lending areas, including Residential Investment purchases, commercial property purchases and refinancing.
The Reserve Bank of Australia dropped the Cash Rate three times during the year at their February, May and August meetings. This has seen increased confidence and additional borrowing capacity.
Many of the Major Banks analysts and economists now feel that there will be a holding period given the current data in areas such as Inflation, retail spending and unemployment.
Property
Property experts expect Australia’s residential property sector to reach new peaks in every capital city in the coming months. Melbourne’s current median (1/11/2025) for houses is $974,000 and units are currently $637,000. In comparison with Sydney where the house median is $1,576,000 and for units is $886,000.
Melbourne’s median price is about 1% below the 2022 peak, and this is partly due to the discontent of investors with some of the ‘initiatives’ introduced such as the lowering of the tax-free threshold for land tax, compulsory rental property upgrades and the short stay levy.
However, moving forward, there is property value growth predicted in Melbourne based on population growth, an overall lack of supply of properties with this expected population growth and the increased borrowing capacity from this years rate cuts.
2026 outlook
Melbourne for the last 50 years has presented opportunities to buy and 2026 will be no different. I am sure in 2031, 2036 etc, we will look back and be amazed by the 2026 prices.
With access to over 40 lenders, the Lending team at Liston Newton can assist you with all your finance needs, so whether you are wishing to purchase, refinance, upgrade, downsize or unlock equity from your current for investments, get in touch to discuss further.
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