Market Update

Headlines over the past few weeks have used words such as tightening, clamping and crunching when talking about the housing market and its affiliate institutions.

While a bearish approach to property is expected as we enter a downswing in the market cycle, further context and data are needed for a more grounded perspective.

Table 1 presents the statistics summary for April.

Table 1: April 2016 Summary Continue reading »

 

Market Update

The latest data and analysis of the Australian housing market reveals that 17 of our major dwelling markets recorded negative growth in the March quarter. Table 1 presents the latest statistics summary.

Table 1: February 2016 Summary Continue reading »

 

Housing Market in Slowdown

The latest data and analysis of the Australian housing market reveals an overall subdued or negative performance across the country. This is a likely result of a combination of things – such as restricted access to finance and sluggish economic performance, which in turn affects purchasing power and the confidence of buyers.

Table 1 presents the summary of growth, rent and sales data for February 2016, across the major housing markets.

Table 1: February 2016 Summary Continue reading »

 

Market Overview

Table 1 shows the capital growth, rent and sales summary for January 2016.

Table 1: January 2015 Summary Continue reading »

 

Market Overview

Table 1 shows the capital growth, rent and sales summary for December 2015.

Table 1: December 2015 Summary Continue reading »

 

When Rental Yield Is Not Enough

by Jane Slack-Smith

I was recently reading the latest Residex Best Rent Report, which was released a couple of weeks ago. There are some notable suburbs in the report showing amazing yields – in fact one suburb in South Australia has a rental yield of over 7% – but the predicted capital growth is not that hot.

That got me thinking… I am often asked what is more important – cash flow or capital growth?

Capital growth versus cash flow has been a hotly contested topic in property investing since the year dot and most people stand firmly in one camp or the other. On the other hand, I have always considered that both are important. After all, if I can achieve both then this allows me to build a portfolio without having large out of pocket expenses each month.

Continue reading »

 

2015 in Review and the Outlook for the Year Ahead

Market Update

Table 1 shows the capital growth, rent and sales summary for November 2015.

Table 1: November 2015 Summary Continue reading »

 

Melbourne Outperforms Sydney + the Dangers of Inter-State Investing

Market Update

Table 1 shows the capital growth, rent and sales summary for October 2015.

Table 1: October 2015 Summary Continue reading »

 

Sydney Shows Signs of Slowing; Further Interest Rate Cuts on the Horizon

Overview

The Australian economy is underperforming due to continued declines in commodity prices and global economic growth, with further cash rate cuts expected by mid-2016.

The timing of a further interest rate cut depends largely on when the US Federal Reserve decides to raise their rates. A rise in the USD would lead to a relative fall in the AUD, which is a desirable outcome for competitiveness in Australian exports. This may hold off a further rate cut in Australia this year.

If the Federal Reserve maintains interest rates the USD is at risk of falling, which would undermine competitiveness of Australian firms and potentially trigger a further rate cut by the RBA within the next few months.

Continue reading »

 

Is the East Coast Housing Boom Coming to an End?

by Eliza Owen
Market Analyst for Onthehouse.com.au

Australia’s main economic indicators have trended unfavourably and confidence in the Australian economy is falling. The annualised GDP growth rate is down to 2 per cent, unemployment is at 6.2 per cent and above its 10 year average, and wage growth is at a historically low 2.3 per cent.

Commodity prices are down, with iron ore trading at an average of AUD$76 per unit over August. August also saw a fall in the price of crude oil of 14.5 per cent to AUD$64.43. Thermal coal fell marginally from July to August, to AUD$85.26.

Continue reading »

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