This rate cut is good news for property owners all over Australia, not just those in Sydney and Melbourne, says Real Estate Institute of Australia CEO Amanda Lynch on ABC News 24.

"This is exactly what Australia needs, it's a circuit breaker which will help lift consumer confidence and help homebueyrs as well," says Lynch. "Homebuyers are going to have an extra $50 a month to invest in their mortgages."

Addressing concerns about the rate cut potentially pushing prices in Sydney and Melbourne even higher, Lynch says, "Everyone talks about Sydney and Melbourne but the rest of Australia are actually going through some tough times. Darwin and Perth, prices are falling, Canberra is also falling. I think we really need to shift our focus back onto the whole nation which is sort of going through a patchwork economy at the moment."