With another building firm going into administration yesterday, affecting a further 120 projects, it wasn’t a great surprise to see that home-building activity was falling sharply in late 2023 as the pipeline shrunk. Apartment construction held up better. I’ve been of the opinion that anti-landlord legislation and new land taxes will stifle the supply of…
We know that we’re just not building enough homes despite soaring demand for more accommodation. According to PropTrack’s New Homes Report, December saw a 9.5% drop in total building approvals, a stark contrast to the modest 0.3% increase in November. This decline was particularly pronounced in unit approvals, which plummeted by 25%, and to a…
A recent analysis by the e61 Institute and PropTrack has shed light on the significant impact of Queensland’s 2011 stamp duty hikes. The numbers are telling: a sharp 7.2% drop in home purchases for that year. This isn’t just about sales figures; it’s about people – with a 9% decrease in relocations (equating to 20,000…
In some of Australia’s most sought-after suburbs, finding a rental property is an increasingly herculean task. With a tiny fraction of properties available for rent tenants face fierce competition, driving up rental prices and exacerbating the existing rental crisis. High demand and limited supply are leaving many in a lurch. However, it’s not all doom…
The Commonwealth Bank, Australia’s biggest lender, is forecasting six interest rate cuts in 2024 and 2025 starting in September this year. They also expect dwelling prices to rise a further 5% in 2024. The CBA’s head of Australian Economics, Gareth Aird, says the recent rise in unemployment will force the RBA to take action to…
A panel of 31 leading economists assembled by The Conversation sees no cut in interest rates before the middle of this year, and only a slight cut by December, enough to trim just $55 per month off the cost of servicing a $600,000 variable-rate mortgage. The panel draws on the expertise of leading forecasters at…
The latest 2024 First-Home Buyer Report from Domain, in collaboration with digital lender Unloan, backed by Commbank, offers a deep dive into the evolving landscape for first-home buyers in Australia. This comprehensive report paints a complex picture, primarily influenced by the current surge in interest rates. Quicker savings for a deposit – but it’s not…
The latest ABS Lending Indicators data reveals a surprising shift in December, marking an end to the recent growth spurt in new housing loans. A noteworthy decline of 4.1%, down to $26.27 billion, breaks the consecutive five-month growth streak. The most significant drop was observed in the owner-occupied segment, with new loan commitments plummeting by…
Inflation has fallen for the fourth successive quarter. Australia’s annual inflation rate fell to 4.1% in the December quarter of 2023, down from 7.8% in the December quarter of 2022. The new rate is the lowest in two years and the closest in two years to the Reserve Bank’s target band of 2–3%. The decline…
CPI results for the December quarter showed inflation has fallen once again, from 5.4% in September to 4.1%. This marks the fourth consecutive quarter where inflation has declined on an annual basis, and the December result is below the 4.5% forecast made by the RBA last November. Falling inflation reflects softer demand in the economy,…
