Metricon Welcomes RBA Rate Cut as Buyer Confidence Builds

Metricon, Australia’s leading home builder, has welcomed the Reserve Bank of Australia’s decision to reduce the official cash rate by 0.25 percentage points to 3.60 %, describing it as a pivotal boost for Australians looking to enter the home market or upgrade their home.

“This decision gives more Australians the confidence to take the next step, whether that’s building their first home or upgrading to better suit their lifestyle,” said Metricon CEO Brad Duggan. “We know there’s a large group who have been watching the market closely, waiting for the right moment. This cut sends a strong signal that the time might be right to act.”

The move follows July’s unexpected decision by the RBA to keep rates on hold, a pause that introduced uncertainty and saw some prospective buyers delay decisions. “Last month’s hold put some momentum on ice and really was a lost opportunity to build critical customer confidence, but today’s cut will begin to build that confidence,” Mr Duggan said.

More than 2,500 people are visiting Metricon display homes across the country each week, a strong indication that many prospective buyers are actively monitoring the market. “Buyer confidence seems to be increasing with each cut, and a third could be the tipping point that converts more interest into action.

“It is important that customers don’t delay their decision to build once they have certainty on their financing as builder workbooks are sure to fill up quickly”, Mr Duggan added.

Industry analysts suggest today’s decision could be the turning point for the housing sector in 2025, with the combination of lower borrowing costs and pent-up demand expected to drive stronger sales activity in the coming months. The cut is also likely to spur increased competition among lenders, giving buyers and refinancers more bargaining power at a time when sentiment is shifting rapidly back towards growth.

This marks the third rate cut this year, reflecting a broader shift toward more accommodative monetary policy. Banks and mortgage brokers are already reporting heightened enquiry levels and refinancing activity, with many customers exploring fixed-price home packages to secure certainty in a shifting market.

However, Mr Duggan emphasised that rate cuts alone are not enough to fix the housing sector’s deeper challenges. “To sustain this momentum, we need urgent action on planning and approval delays, land supply, infrastructure investment, and building workforce capacity,” he said.

Metricon is continuing to support customers in navigating the changing landscape, offering fixed-price home packages, a broad network of display homes, and expert guidance to help Australians build with confidence.

“Momentum is clearly building,” Mr Duggan said. “We’re ready to meet that demand and we know many Australians are ready too. But to keep things moving in the right direction, we also need long-term, coordinated solutions that address the barriers to supply and delivery.”