Overall, the Australian property market has generally performed well in the June quarter.
The Sydney, Melbourne and Brisbane markets saw strong gains over the June quarter, with the exception of Brisbane units – which were virtually unchanged. The resource markets in WA and NT continued their decline, however the pace of the declines has slowed. The June summary is presented in Table 1.
May proved a relatively positive quarter for Australia’s housing market. A snapshot of the May statistics is presented in Table 1.
Of the house markets, the Hobart market recorded the strongest quarterly growth gains in May with the median house increasing in value by 2.59%. This was followed by Country NSW houses, which posted 2.39% growth for the quarter.
In the unit market, the median Hobart unit increased by a shocking 6.66% in the May quarter. Regional Queensland was a very distant second, where median units increased by 2.44% over the same time period.
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.
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.
Sydney Shows Signs of Slowing; Further Interest Rate Cuts on the Horizon
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.