The Friday Wrap | 12 September 2025

Good afternoon,

The week was quiet on economic data, with some movement in the interest rate outlook standing out as the most significant development.

Highlights of the week:

A slight fade in auction clearance rates as reported by Cotality, with a slight dip to a still strong 75%.  The fourth straight week where the combined capitals preliminary auction clearance rate held at 75% or higher.  For Melbourne, there have now been 19 consecutive weeks with the clearance rate at 70% or higher.

The ABS reported that the total value of Australia’s residential dwellings reached $11.7 trillion in the June quarter, with the number of dwellings estimated at 11.3 million. This cements housing’s position as the country’s largest store of household wealth.

Economic news continues to point to a hold by the RBA on September 30th, with markets now placing the chance of a cut at less than 15%.  Markets still expect the next cut on Melbourne Cup Day (November 4th).

Cotality reported that national rents were up 4.1% over the year to August, with capital city growth regaining momentum. Gross yields held steady at 3.7% but remain squeezed by higher dwelling values.

Have a great weekend!

Chief Economist

Matt Bell