Property interest payable on dwellings increased from $45 billion to $91 billion in the 2023 financial year, more than doubling in recording an increase of +102 per cent.
Good news for banks, I guess but will most likely be crippling for household expenditure, consumption, and retailers over the next year...
Gross incomes per capita increased +5.7per cent in FY2023, after a +5.5 per cent increase in FY2022.
There were some strong lifts in incomes in the ACT (always...of course!), Western Australia, Queensland, and New South Wales, all of which recorded increases in the range of 6 to 7 per cent over the financial year past.
However, increases in disposable incomes were only far more modest, largely due to inflation.
Such an enormous increase in mortgage interest payments in such a short space of time will almost inevitably stall the economy over the next year.
Concerningly, the dwelling construction cycle has apparently also been short-circuited, suggesting a dramatic shortage of housing over the next few years.
Lending conditions are ridiculously tight, so something will need to change here at some point, with the current settings creating severe disruption in some parts of the country, with unrest potentially not too far behind.
- Also read:Guide to Downsizing a House in Australia
- Also read:Latest Asking Prices State by State | April Total Housing Listings fell by 6.4%
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Melbourne property market forecast for 2024
- Also read:Sydney property market forecast for 2024
