RBA Rate Hold: 3 ASX Property Stocks Set to Benefit (October 2025)

The Reserve Bank of Australia meets this Tuesday, and anyone hoping for mortgage relief will likely be disappointed. With inflation still sitting at 3.2%, stubbornly above the RBA’s 2-3% target range, economists are near-unanimous that rates will stay locked at 3.6% for the foreseeable future.
For the millions of Australians wrestling with mortgage stress, that’s another month of waiting. But for investors in ASX property stocks, this rate hold could mark a genuine turning point.

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Why Rate Holds Actually Help REITs

Here’s the counterintuitive part that catches most investors off guard: Real Estate Investment Trusts don’t necessarily need rate cuts to perform well. What they really need is certainty.
When the market shifts from “rates are definitely coming down soon” to “rates are holding steady here,” it removes a massive overhang for property stocks. REITs can refinance their debt without worrying about timing the market perfectly. Property valuations stop compressing. And perhaps most importantly, those dividend yields start looking genuinely attractive again when investors know the capital base isn’t going to erode further.
Think of it this way: A 5% dividend yield on a REIT looks pretty ordinary when you think the stock price might drop another 10% if rates keep rising. But that same 5% yield looks compelling when you know rates have found a floor.

Three ASX REITs Positioned to Benefit

Goodman Group (ASX: GMG)

Goodman Group (ASX: GMG) is Australia’s largest industrial and logistics property group, with major exposure to data centres, arguably the hottest property sector globally right now. The company operates across 17 countries with over $80 billion in assets under management.

Why it stands out in a stable-rate environment:

● Has a massive development pipeline with the vast majority pre-committed to tenants
● Maintains occupancy rates above 97% across its industrial portfolio
● Benefits directly from the AI boom, driving insatiable demand for data centre space
● Offers a 2.1% yield, modest, but backed by exceptional growth potential

These large-scale development projects become far more attractive to execute when refinancing costs stabilise rather than continuing to rise.

Scentre Group (ASX: SCG)

Scentre Group (ASX: SCG) owns and operates 42 Westfield shopping centres across Australia and New Zealand. Yes, retail property has been the unloved corner of the REIT market, but that’s precisely where opportunity can emerge for patient investors.

The investment case:

● Currently offers a 5.3% dividend yield, fully franked (7.6% grossed-up for Australian taxpayers)
● Occupancy rates have climbed to 98.7%, up from 97.1% eighteen months ago
● Trading about 15% below its net tangible asset value, providing a margin of safety
● Focus on integrating online shopping with physical retail to create resilience

With rates holding rather than rising, that 5.3% yield becomes increasingly attractive compared to term deposits around 4.5%.

Stockland (ASX: SGP)

Stockland (ASX: SGP) offers diversification across retail, logistics, and residential communities, providing investors with exposure to multiple property sectors rather than betting everything on one theme.

Key strengths:

● Delivers a 4.9% fully franked dividend yield
● Maintains a conservative gearing ratio of 24%, well below its target ceiling
● Occupancy rates across its retail portfolio sit at 98.5%
● Residential communities business provides a growth dimension beyond rent collection

For investors seeking property exposure without taking concentrated sector risk, Stockland represents a balanced approach. The company’s conservative balance sheet means it’s not overly leveraged heading into this stable-rate environment.

What to Watch

While rate stability provides a favourable backdrop, investors should remain aware that if inflation proves more persistent than expected, rates could still rise from current levels. Retail property also faces ongoing structural headwinds from online shopping, despite recent resilience.
The key question for investors is whether rate stability alone is enough or if you need actual rate cuts to see significant capital appreciation. In our view, stability removes the biggest headwind, the fear of further valuation compression, which is the foundation REITs need to start performing again.
Australian commercial property values have already declined 15-20% from their 2021 peaks. The sector has largely priced in the bad news, and stabilisation creates a more attractive entry point for patient investors.

Bottom Line

Tuesday’s expected RBA rate hold will disappoint mortgage holders, but we believe it represents a genuine turning point for ASX property stocks. The shift from “rates might keep rising” to “rates are stable here” removes the major uncertainty that’s been weighing on the sector.
For income-focused investors seeking yields above 4.5% with improving capital stability, these three REITs appear to warrant serious consideration:
Goodman Group offers growth exposure through data centres and industrial property, ideal for investors prioritising capital appreciation over immediate income.
Scentre Group provides an attractive 5.3% fully franked yield with a 15% discount to asset value for those comfortable with retail exposure.
Stockland delivers diversified property exposure with conservative gearing for investors seeking a balance between income and growth.
The combination of rate stability, attractive yields, and discounts to asset values creates what we believe is a compelling setup for Australian REITs heading into 2026.