Invest
Worrying new pattern in property market surfaces for investors
Building approvals for the first half of the year were lower than expected and could have a knock-on impact to the Australian property market.

Worrying new pattern in property market surfaces for investors
Building approvals for the first half of the year were lower than expected and could have a knock-on impact to the Australian property market.

The Housing Industry Association (HIA) reported that building approvals fell by 15.2 per cent in the first three months of 2019.
The HIA now projects a further 11 per cent drop in building approvals for the rest of the year.
Further, it also forecasts building approvals to decrease to around 184,500 in 2019, 180,000 in 2020, and 183,500 in 2021.
“Market confidence fell away in the later part of 2018 as dwelling prices corrected, adversely impacting all segments of the market. Investors and owner-occupiers are delaying purchase decisions, and foreign investment has also fallen dramatically due to a range of government restrictions,” HIA chief economist Tim Reardon said.
Mr Reardon also said that, if the central bank doesn’t get the timing right with a cash rate cut, “it might be too late for the home building industry, which will adjust employment levels for this lower level of activity”.
“Unfortunately, a cut to interest rates in 2019 will not have the same positive impact on new home building as in previous cycles,” he said.
Mr Reardon said the housing market is also still recovering from restricted lending, prompted by a cap imposed on interest-only lending last year.
“Banks are assessing borrowing capacity against a minimum floor of a 7.25 per cent mortgage rate and for interest-only loans to be assessed on a principal and interest basis for the term of the loan,” he said.
“There is a need to downgrade our expectations of the speed of the current downturn in the housing market further,” he added.
This email address is being protected from spambots. You need JavaScript enabled to view it.om.au

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more