Invest
What surprised the central bank? Parts of Australia are bucking history
Invest
What surprised the central bank? Parts of Australia are bucking history
Patterns in the latest rounds of property data are out of step with historical patterns and an “unusual” situation for investors in the 2019 market.

What surprised the central bank? Parts of Australia are bucking history
Patterns in the latest rounds of property data are out of step with historical patterns and an “unusual” situation for investors in the 2019 market.

The Reserve Bank of Australia (RBA) said that the fall in dwelling values across Sydney and Melbourne are out of the ordinary, particularly given the low mortgage rate environment and the declining unemployment rate.
The RBA observed that after rising by almost 50 per cent over the five years to September 2017, national housing prices fell by approximately 8 per cent to be back around mid-2016 levels.
Despite acknowledging the rise in property prices in Hobart and Canberra and “flat” price movements in Brisbane and Adelaide, the RBA noted the “significant” falls in Perth and Darwin and the “unusual” declines in Sydney and Melbourne.
The “noticeable decline” in foreign investors may be contributing to these patterns, according to the RBA.
Further, some of the movements in housing prices could be explained by the fact that the supply of housing does not respond quickly to changes in demand.
“In particular, the run-up in housing prices had occurred during a period when housing supply had not picked up sufficiently to match higher demand from more rapid population growth,” the RBA said.
“Over time, higher housing prices had eventually led to a sizeable increase in supply, but this had taken longer than in previous cycles,” the RBA said.
When will prices go up?
It’s near impossible to pick the market, but analysis from accounting and advisory firm KPMG indicates prices in Melbourne and Sydney should start heading north around in 2020 and 2021, respectively.
KPMG said the “push and pull” of market factors, such as the amount of dwellings, population growth and investor borrowing, will follow the previous trajectory of market falls and revert to growth conditions.
“Our housing update shows that the tougher regulatory actions and taxation measures by both federal and state governments we identified last year have had a significant effect,” said Brendan Rynne, KPMG chief economist.
“There has been a falling-away in foreign interest, notably from China, and lending to domestic buyers has got stricter, while housing supply has increased. This is why prices have declined, but we believe that process will reach its peak over the next few months and then go into reverse later this year.”

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more