New home lending in Australia saw a healthy rise during June, up 2.3% and up 6.3% compared to the same month in 2015, the latest data from the Australian Bureau of Statistics shows.
The Reserve Bank of Australia cut its interest rate at the beginning of May so June’s housing finance results are the first month’s data to fully capture the effect of cheaper mortgage costs.
According to Shane Garrett, Housing Industry Association (HIA) senior economist, prospective home buyers seem to have taken advantage of the lower interest rate environment.
Residential rents in Australia fell in all cities except for Melbourne and Hobart in July taking the combined capital city median weekly rent to $483 a week, the lowest since December 2015.
Combined capital city rental rates are $485 a week for houses and $467 a week for units, according to the latest rent index from real estate firm CoreLogic.
Overall the index fell by 0.3% over the month and is 0.6% lower than it was in July 2015 and it is anticipated that the rental market weakness will persist and that on an annual basis rents will continue to fall over the coming months.
Affordability for home buyers in Australia eased back in second quarter of 2016 as price growth returned to the residential real estate market.
Overall affordability fell by 3.7% and was 2.1% less than the same quarter of 2015, according to the latest report from the Housing Industry Association, the voice of Australia’s residential building industry.
The capital city housing affordability index fell by 4.3% during the quarter, while the regional market index experienced a 1.9% improvement.
Weekly rents in capital cities in Australia fell by 0.4% in June and annually they are now 0.6% lower, the latest rented property index shows.
However, while a majority of capitals saw a drop in rental rates over the month, on an annual basis, half of Australia’s capital cities actually recorded a rise in rents. These included Sydney up 0.4%, Melbourne up 1.7%, Hobart up 4.6% and Canberra up 1.9%.
This takes the combined capital city rental rates to $487 a week for houses and $469 a week for units, the data from the CoreLogic June Rent Review report shows.
There was a 0.5% rise in capital city dwelling values in June with Sydney, Melbourne and Hobart recording another substantial rise but five cities recorded falls.
Higher dwelling values across Australia’s two largest capital cities continued to push the CoreLogic Hedonic Home Value Index to new record highs, with dwelling values across the combined capital cities rising by 0.5% in June to be 8.3% higher over the past 12 months.
The June results continued to show a rebound in housing market conditions after CoreLogic reported weaker results for the final quarter of 2015 when the combined capitals’ index was down 1.4%.
Home prices across Australia's major cities rose for a sixth straight month in June as falling mortgage rates kept demand hot in Sydney and Melbourne, a potential red flag for policy makers worried about the risk of a borrowing-fuelled bubble.
Total new home sales in Australia fell for a second consecutive month in May 2016 but experts say it is cyclical downturn and nothing to worry about.
Total seasonally adjusted new home sales declined by 4.4% following a 4.7% fall in April 2016. The sale of detached houses fell by 6.7% but apartments were up by 4.9%.
The data also shows that detached house sales declined in three of the five mainland states with a fall of 11.5% in New South Wales, a fall of 8.2% in Victoria and a fall of 11% in Queensland. But detached house sales increased by 3.8% in South Australia and by 5.4% in Western Australia.
The pace of growth in residential property prices across Australia’s eight capital cities is slowing amid signs that sales momentum is waning, the latest data shows.
In the March quarter of 2016 prices were 6.8% than 12 months previously, according to the figures from the Australian Bureau of Statistics (ABS). But this was slower than throughout 2015 when growth averaged 9% per annum.
‘This deceleration is largely being driven by developments in the Sydney residential property market, where annual price growth eased back into single figure territory in March this year. Sydney prices grew at an annual rate of 9.7%, beating the national average, but are also the city’s slowest pace of growth in almost three years,’ said Diwa Hopkins, Housing Industry Association economist.
Home prices in India have risen by a cumulative 72.3% between 2007 and 2015, the highest growth among a group of 18 major economies, according to a report in Livemint quoting Bank for International Settlements (BIS) data.
Residential property prices in capital cities in Australia increased by 1.6% in May and are up by 5% year on year, the latest home value index shows
The strong May numbers were largely the result of a surge in Sydney dwelling values which were up 3.1% over the month, according to the data from CoreLogic.
Prices also increased strongly in Canberra with month on month growth of 2.5% and were up 1.6% in Melbourne and 2.2% in Hobart. Perth was the only city to record a fall with prices down 2.7%.
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