On Tuesday 11 August 2026, the Reserve Bank of Australia left the cash rate unchanged at 4.35%. The decision was unanimous and marked the second consecutive hold following rate increases in February, March and May.
For Melbourne property buyers, the decision does not mean interest rates are coming down. However, after several increases earlier this year, it provides a period of greater stability while the RBA assesses how the economy is responding.
So what does the latest decision mean if you are considering buying an apartment in 2026? From interest rates and off-the-plan timing to Victoria's stamp duty concession and Melbourne's apartment pipeline, there are several factors worth understanding.
The RBA's decision comes as signs emerge that tighter financial conditions are beginning to slow parts of the economy.
According to the Australian Bureau of Statistics, annual inflation eased to 3.8% in the 12 months to June, down from 4.0% in May. Trimmed mean inflation remained at 3.6% while the unemployment rate held at 4.4% in June as employment increased by around 76,000 people.
The RBA has acknowledged that financial conditions are now tighter and the economy appears to be slowing as expected. However, inflation remains above its target range and the Bank has made it clear that future decisions will continue to depend on the data.
In simple terms, the RBA has paused to assess the impact of the rate increases already delivered.
For buyers, this provides a clearer picture of current borrowing conditions, even though future rate movements remain uncertain. If you are considering a purchase, speaking with a lender or mortgage broker can help you understand your borrowing capacity based on today's circumstances while allowing for possible changes before settlement.
When you buy an established home, settlement generally takes place within a relatively short period and finance is required soon after signing the contract.
Buying off the plan works differently.
Typically, buyers pay a deposit when contracts are exchanged, with the balance due at settlement once the apartment is completed. This can create more time between committing to a property and arranging final finance.
Your agreed purchase price is set out in the contract, while the period before settlement may give you additional time to save, prepare your finances and plan for the move.
For projects completing in 2027 or beyond, that time can be valuable. However, buyers should still plan for a range of possible financial conditions at settlement rather than relying on interest rates moving in a particular direction.
Another factor for off-the-plan buyers is Victoria's temporary off-the-plan duty concession, which has been extended for eligible contracts entered into on or before 20 April 2027.
Under the temporary concession, eligible strata apartments, units and townhouses can receive a deduction for construction or refurbishment costs that occur after the contract date when calculating the property's dutiable value.
The earlier in construction an eligible property is purchased, the greater the outstanding construction costs may be and therefore the greater the potential duty saving.
The Victorian Government provides an example of an eligible $620,000 apartment purchased before construction begins. In this example, stamp duty reduces from around $32,000 to approximately $4,000, representing a potential saving of around $28,000.
The current temporary concession also has no property value threshold and is not limited to first home buyers or owner-occupiers. Eligible investors, companies and trusts may also access the concession.
Actual savings will vary depending on the property, contract date, stage of construction and individual circumstances. Buyers should confirm their eligibility and estimated duty with their conveyancer or solicitor before purchasing.
The latest Australian building approvals data showed a rebound in June, with total dwelling approvals rising 7.2% for the month. Private sector dwellings excluding houses, which includes apartments and other higher-density housing, increased 17.8%.
While monthly approvals can move considerably, the broader pipeline for new apartments in Melbourne remains constrained.
Urban Property Australia estimates there are around 7,000 apartments currently under construction across Inner-City Melbourne, around 36% below average levels. Its research also points to a constrained future supply pipeline while apartment rents remain around historically high levels.
For buyers, this matters because developments being planned and built today will form part of the new apartment supply available over the coming years.
A more limited pipeline does not guarantee future price growth, but supply is one factor buyers may wish to consider alongside location, quality, affordability and their own long-term plans.
KPMG's August 2026 housing outlook forecasts Melbourne unit values to rise by 0.4% during 2026 followed by growth of 3.6% in 2027. Nationally, unit values are forecast to increase by 2.2% in 2026 and 3.7% in 2027.
For Melbourne, KPMG points to factors including population growth, housing supply constraints and relative affordability compared with other major capital cities.
These forecasts provide useful context, but they are not guarantees. Property values can rise or fall and individual suburbs, developments and apartments can perform differently.
For buyers considering an off-the-plan apartment today, the important point is that the purchase and settlement happen at different stages of the market. This creates time to plan while securing the agreed purchase price under the contract.
A changing market can create opportunities, but choosing the right property remains just as important as timing.
Before purchasing off the plan, consider:
Taking the time to understand these details can help you make a more informed decision based on your own circumstances.
At Norus Projects, our focus is on considered design, quality finishes and well-connected Melbourne locations, creating homes around how people want to live now and into the future.
Our projects across Ivanhoe, Burwood, Sandringham and Caulfield South are at different stages of planning and construction, which means settlement timing and potential stamp duty savings can vary from one development to another.
If you are considering an apartment and would like to understand what the latest RBA decision, Victoria's off-the-plan concession and individual project timelines could mean for your plans, speak with the Norus Projects team.
We can take you through the apartments currently available, construction progress and the details relevant to each project.
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