Invest
Predictions: Where jobs, markets and property is heading for Australia
The RBA has released its note from the meeting on Tuesday, 4 June, revealing mixed results for the Australian economy as a whole.
Predictions: Where jobs, markets and property is heading for Australia
The RBA has released its note from the meeting on Tuesday, 4 June, revealing mixed results for the Australian economy as a whole.
Growth in consumption remains sluggish as well as investment in dwellings which was expected to decline further in the March quarter.
Information from the ABS capital expenditure survey and the business liaison contacts suggested that mining investment was close to its trough, while the information pointed to modest growth in non-residential building investment.
Low interest rates
The Reserve Bank discussed the implications of low interest rates on household incomes. Low interest rates lead to a decline in the interest investors pay on debt but also limit the capacity to save through assets such as term deposits.
Housing market
The housing market remains weak, with declines in Sydney and Melbourne during May, although the pace of decline has eased from earlier in the year. Housing prices are continuing to decline markedly in Perth.
Labour market
The data shows the labour market in April as mixed. The unemployment rate increased to 5.2 per cent, which is an increase of 0.1 of a percentage point.
The underemployment rates in both New South Wales and Victoria remain historically low, although both have increased since the beginning of 2019. Employment growth nationwide was moderate but remains above growth in the working-age population.
Financial markets
A rise in global developments including a trade war has led to a rise in volatility, most notably in the equity markets.
Australian equity prices were little changed at close to their highest level in a decade. There has been a sharp increase in Australian banks’ share prices following the federal election.
However, emerging markets are having modest tightening in financial conditions. Mexico has increased tensions, with the United States putting pressure on the nation.
The Australian dollar had depreciated a little over preceding months, remaining around the lower end of its narrow range of the preceding few years.
Housing credit growth has stabilised in recent months, having slowed substantially over the preceding year. Growth in housing lending to owner-occupier was running at 4.5 per cent while the rate of growth in housing lending to investors has been close to zero since the start of the year.
Business lending has also suffered, with lending to large businesses continuing to be the sole source of growth. Lending to smaller businesses has declined over the preceding year.
About the author
About the author
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more