RBA Cuts Rates to 3.85% – What It Means for Property & Hiring in Australia
On May 20, 2025, the Reserve Bank of Australia (RBA) made a decisive move, cutting the official cash rate by 25 basis points to 3.85%. This marks the second rate cut this year and the lowest level in two years, signalling a strategic shift toward stimulating economic growth amid a softening global outlook.
But what does this mean for the property and real estate sectors — and how could it impact hiring decisions and workforce planning?
A Boost for Buyer Confidence and Market Activity
Lower interest rates typically lead to reduced mortgage repayments, which can spur first-home buyers, investors, and upsizers to re-enter the market.
We anticipate:
- Increased property enquiries, especially in metropolitan growth corridors
- Greater activity in off-the-plan and project sales
- Developers ramping up projects due to improved buyer demand and cheaper funding
This uptick could place pressure on real estate agencies, developers, and property managers to scale teams quickly to meet demand.
- The Recruitment Flow-On Effect
Sales Consultants and BDMs to capture new leads - Leasing Agents to handle a growing pool of renters
- Property Managers in high-growth residential areas
- Support staff and administrators to keep operations efficient
With activity on the rise, competition for talent is also heating up — and in a tight labour market, speed to hire and employer branding will be critical.
Commercial Property & Construction Outlook
For the commercial sector, lower borrowing costs could spark movement in:
- New builds and refurbishments
- Leasing activity, especially in fringe and suburban areas
- Capital works and asset upgrades delayed during higher-rate periods
- We expect an increase in demand for Project Managers, Facilities Managers, and Contract Administrators — particularly for firms looking to seize growth opportunities before the next cycle shift.
How Should Property Leaders Respond?
Here’s our advice to clients:
Reassess Workforce Plans: If you paused hiring during the rate hike period, now is the time to get ahead.
Revisit Candidate Pipelines: The market is moving. Delays can mean missing out on top talent.
Partner Strategically: Use specialist recruiters who understand both the property cycle and candidate motivations in a shifting market.
Gough Can Help You Stay Ahead
With over 30 years of experience recruiting across property and real estate, Gough Recruitment is well-positioned to support your business during this rebound. We work closely with agencies, developers, and corporates to connect them with the right talent — fast.
If you’d like to discuss your hiring strategy in light of the rate cut, or explore market insights across your region, get in touch with your local Gough consultant today.
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