Rental housing crisis descends upon 6 capital city markets
By Maja Garaca Djurdjevic
09 March 2021
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Vacancy rates across six of Australia’s capital cities are at extremely tight levels, prompting a rental housing crisis across many of the regions, new research has revealed.
Six of Australia’s capitals have vacancy rates well below 2 per cent, which is pushing rents up by as much as 20 per cent in many regions, The Property Nerds’ co-founder, Arjun Paliwal, said.
“Regional NSW, Victoria and Queensland have seen a dramatic shift to unbelievable tight levels,” Mr Paliwal told Smart Property Investment.
According to The Property Nerds recent data, six of eight of “our rest of state regions” have a below 1 per cent vacancy rate, some of the tightest conditions the self-proclaimed nerds have ever seen.
6 metrics to consider when researching property
6 metrics to consider when researching property
Property research can be daunting, especially for first-timers, but two property gurus and self-proclaimed data nerds lay the groundwork for smart investing.
The co-founders of The Property Nerds, Arjun Paliwal and Kent Lardner, recently released a 154-page
Australia’s Top 20 Investing Regions for 2021 report, using data to track down the best-performing markets in the country.
In terms of methodology, the duo explained their processes of data shifting on a recent episode of The Smart Property Investment Show.
“We had to sit back and thought, ‘There”s regions I like, there’s regions Kent likes and then there’s regions where we think others may like. This made it pretty hard to begin with,” according to Mr Paliwal.
RBA admits low interest rates will boost cost of housing
By Cameron Micallef
17 February 2021
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The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the housing market.
The housing market has been touted for its resilience, the minutes from the RBA’s February board meeting revealed, with the bank acknowledging the market’s key role in the country’s economic recovery.
Noting that the market’s resilience has been better than expected, the RBA said: “Housing prices had recently been rising across most of Australia following an earlier period where conditions had been quite variable. This had returned the national housing price index to levels reached around four years earlier.”
The Reserve Bank of Australia has made its first call on the official cash rate for this year, following its decision to cut the rate to a record low in November.
RBA’s 30% property growth forecast to materialise in 75% of regions
By Maja Garaca Djurdjevic
21 January 2021
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Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions.
According to a document released by the Reserve Bank of Australia (RBA) last Friday, following a Freedom of Information request, a permanent 1 percentage point (100 basis point reduction) cut in the official rate could increase real housing prices by 30 per cent over three years.
With the RBA clearly alert to the risks from low interest rates, property experts believe the bank’s predictions are fairly accurate.