Invest
Sunny with a chance of wage growth: OECD forecast
The OECD has handed down its latest economic outlook for Australia and it’s mainly good news.
Sunny with a chance of wage growth: OECD forecast
The OECD has handed down its latest economic outlook for Australia and it’s mainly good news.
Australia can expect the economy to continue growing at its “robust” pace, around 3 per cent, with business investment and exports set to pick up.
Simultaneously, a stronger labour market together with rising household incomes will support consumption, while inflation and wages are also likely to increase gradually.
“Rising employment is boosting incomes and consumption. Employment has risen quickly, with many jobs filled by rising participation in the labour market, in particular among women and older workers,” the OECD said.
“Rising participation has slowed further declines in unemployment and kept inflation pressures in check. Wage increases are picking up only gradually.”
However, the combination of stronger employment growth and labour market participation also triggers “uncertainty” around the amount of slack in the economy and when the economic growth will actually manifest in stronger wage and income growth.
With this in mind, the OECD predicts wage growth will pick up around the end of the year. This could likely trigger a cash rate rise, the OECD added.
“The resulting boost to household incomes should mitigate risks associated with Australia’s very high household indebtedness,” it said.
We're not home and hosed
However, the OECD warned Australia against complacency when it comes to housing indebtedness.
“Risks from the housing market and high household indebtedness warrant continued vigilance,” the OECD said.
It noted that the housing market has already shown symptoms of easing with price growth slowing “markedly”, thanks in part to the Australian Prudential Regulation Authority’s measures to tighten investor lending.
Households in mining regions are a “concern” to the OECD but the rest are considered sound.
“Risks from leveraged households and the housing market remain elevated, and the central bank and supervisors should therefore maintain vigilance,” it said.
“Unexpectedly large corrections in house prices would reduce household wealth, and could cut consumption and damage the construction sector.”
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