Shallow Housing Downturn Expected as Rents and Supply Support Market

Despite national cooling, the downturn is anticipated to be shallow due to ongoing high rents and constrained housing supply. The Reserve Bank of Australia maintained interest rates at its August meeting, providing some stability.

In Melbourne's western growth corridor, strong rental demand and limited new stock could provide a floor for property values, even during a downturn. Investors might find opportunities in properties that offer solid rental yields, while buyers could face ongoing competition for quality homes.