Rate cuts will benefit Melbourne's inner north market: Rob Elsom

GUEST OBSERVATION

The RBA’s decision is good news for home owners as they can pay off their mortgage quicker than expected.

It’s also a positive move for those looking to enter the market.

But these buyers need to keep in mind that shrinking rates will drive more competition, which may cause property prices to rise.

Particularly in Melbourne’s inner north where supply is limited, suburbs such as Carlton, Princess Hill, Brunswick East and North Melbourne have experienced growth of 18.97%, 14.87%, 12.9% and 17.3% for houses respectively over the past 12 months without interest rate cuts.

It will be interesting to see how upper pressure on asset prices and more competition will impact these already bustling, low supply areas.

Rob Elsom is director of hockingstuart Brunswick, Carlton, North Melbourne and Northcote.