Impact of the Middle East hostilities

The recent escalation in the Middle East is reverberating through global markets, and while Australia is geographically distant, we are not immune to its economic effects.

In the near term, rising oil prices are likely to push up inflation, prompting the RBA to keep interest rates higher for longer. This may reduce borrowing capacity and soften buyer sentiment, particularly in outer-suburban areas.

However, Melbourne’s housing market remains underpinned by strong fundamentals: a growing population, tight rental markets, and a persistent housing shortfall. These factors continue to support property values, even amid global uncertainty.

We recommend buyers and investors remain focused on long-term fundamentals and work closely with finance professionals to navigate the current interest rate environment.

Please reach out if you’d like to discuss how this may affect your property plans.