Tim Lawless

While markets expected a pause, the RBA board’s hawkish tone implying a further cut in August surprised many. For Australia’s property sector in particular, observers say the path to a soft landing may be getting even more treacherous.

Economists attributed the rebound partly to the market’s expectations that interest rates had peaked. But the other key driver – the drastic supply/demand imbalance – means higher prices, especially for rents, may be further complicating the central bank’s task.