Things are still looking up this week in the world of Aussie property, despite a few naysayers:
Triple action should boost property market
There are 80,000 reasons why Australia’s property market will struggle to bounce back
Overall, the outlook appears positive, Here is a breakdown of what happened in the different aspects impacting property this week:
Interest Rates
After some bank cuts, RBA cuts are looking ever more likely:
Spending slowdown gives RBA more reasons to get on with interest rate cut
Confidence up as consumers expect interest rate cut
Clearance Rates
Clearance rates showed a marked improvement over the last week: Housing market: Auction clearance rates rise after Coalition election win
Prices
Despite some areas having fallen to 2015 levels, recent Core Logic data does indicate that the rate of decline has decreased, and a very slight gain was seen.
“According to CoreLogic’s daily hedonic home value series, Sydney’s median price rose 0.3% from a week earlier, with a smaller 0.1% gain seen in Melbourne”
Here is the comparison with units to 2015 prices:
Population growth
The discussion around population growth has been in the news again, and the rates are still healthy, despite a drop. According to this article:
“For 2019-20 the Australian government has cut the annual net migrant intake from 190,000 to 160,000.”
Dwelling approval
The latest updates indicate these are very low: Dwelling approval slump turns worse than expected
Apartments
As seen the the article linked above (There are 80,000 reasons why Australia’s property market will struggle to bounce back), apartments are still getting a bad rap, despite continued population growth and a huge decline in dwelling approvals. Any negativity will not last, and even Meriton will likely stop discounting on off-the-plan.
“Billionaire property tycoon Harry Triguboff’s decision to stop discounting his apartments after the Coalition’s win is an “optimistic” one, market analysts say.”
(Read our latest post here on why now is the time to buy in Sydney!)
In other news:
How did Perth property prices get to this point, and will they turn anytime soon?
Housing market may bottom out over next year, Australian property experts say
Mark Bouris says election result will boost property market
Have a great week everyone!
