The country’s housing supply could get the boost it needs after the Reserve Bank of Australia cut the official cash rate for the second time this year, improving residential market sentiment and increasing the borrowing capacities of prospective home buyers, industry analysts said.

High costs have made freshly built homes less affordable, but a rise in house prices in the established market, fuelled by falling interest rates, could mean new dwellings become relatively more economical for aspiring home owners, they said.