Rates Are Up. Here's the Real Story.

19 Mar

Rate Rise — What It Means for Palm Beach | Billy Jaz

Palm Beach · Currumbin Waters · Elanora · March 2026

Rates have moved again. Here's an honest read on what it actually means for our market — and why it's not the story you might think it is.

4.10%

RBA Cash Rate — March 2026

Up 0.25% from 3.85% · Second consecutive hike

Next decision: 5 May 2026

Still below the 4.35% peak of late 2023.

RBA Cash Rate — Recent History

The Gold Coast doesn't flinch the way other markets do.

Palm Beach, Currumbin Waters and Elanora attract a buyer profile that is largely equity-driven. Many are upsizing from interstate, downsizing from larger homes, or purchasing with the proceeds of a sale. Rate sensitivity here is lower than in mortgage-heavy suburban markets. These buyers have capacity. They have conviction. And they're still showing up.

What rate rises actually do in a market like ours.

They slow hesitant buyers. They don't stop committed ones. What we typically see is a short pause — buyers recalibrate, get their finance confirmed, and then proceed. The listings that are priced well and presented well still sell. The ones that aren't, sit. That's not a rate story. That's a fundamentals story.

Sellers Stock remains constrained and new listings across our region are down significantly year on year. The buyers who are active right now are serious — they're not browsing, they're deciding. That's exactly who you want walking through your door.

Buyers Every time rates shift, a wave of buyers pauses. The ones who move during that pause end up with the best properties at the fairest price — before the next wave of competition arrives. If your finance is sorted, the opportunity is real.

Investors Rental vacancy across the Gold Coast prestige market sits at just 1.3% with gross yields at 4.48% — well above the capital city benchmark. Higher rates don't change the fact that demand for rentals here is deeply structural.

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Scarcity doesn't change

There are more people who want to live here than there are homes available. A 0.25% move doesn't change that equation.

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Prices are still growing

Prestige prices rose 3.9% over the past year. McGrath Research forecasts another 3% growth in 2026 — rate rise included.

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Lifestyle demand is sticky

Palm Beach and Currumbin buyers are motivated by how they want to live, not just what a spreadsheet says.

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Still below the 2023 peak

At 4.10%, rates remain below the 4.35% peak of late 2023 — a period when our market held firm and transacted well.

The market here is built on lifestyle, scarcity and long-term wealth. Those fundamentals haven't changed. If you want a straight conversation about what this means for your specific situation — whether you're thinking of selling, buying, or just keeping an eye on things — reach out. That's what I'm here for.

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