Property Market Update

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.

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September Property Market Update

Is the East Coast Housing Boom Coming to an End?

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.

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Property Market Update

Sydney Houses Pass Million Dollar Mark While Resource States Contract Further

The median house in Sydney surpassed the million dollar mark in July and is now valued at $1,017,500. In the quarter ending July, the Sydney median house value grew an astonishing 7.58 per cent. The average quarterly growth rate of all other capital city house markets was just 0.92 per cent.

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Property Market Update

Affordability Continues to Deteriorate

The April statistics are in, and capital growth, rent performance and sales volumes can be seen in Table 1 one below.

Aside from Sydney, housing markets are performing quite poorly. It appeared that growth in the Melbourne market was starting to follow Sydney last month, however April figures tell a different story. Growth for the quarter ending April in median Melbourne house prices has dropped to just 0.15 per cent, as opposed to 3.11 per cent for the quarter ending March. This followed a contraction of the Melbourne housing market in April.

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Follow the Golden Rules of Property Investment

Advertorial: Follow the Golden Rules of Property Investment

Have you ever thought about writing something down that you can hand to your kids that will help them in their property investment journey? I have.

I wish I knew at age 25 what I do now at age 45.

So I finally got around to writing that article, but you know what – it’s not a family secret and it’s worth sharing.

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March Property Market Update

Sydney Continues to Set the Pace in Patchy Market

Our markets remain patchy with Sydney remaining the pace setter. Its comparable growth in the last 12 months in dollar terms is now the largest in recorded history. In determining this outcome we have adjusted past dollar growth period amounts by inflation. In the following table we present some interesting statistics.

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