New loan commitments reach record high
By Cameron Micallef
04 May 2021
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Record-low interest rates are leading to record-high new loan commitments as investors and first home buyers flood the market, official figures have revealed.
The latest new loan commitment data released by the Australian Bureau of Statistics (ABS) showed that new loan commitments rose by 5.5 per cent in March 2021, hitting a record high of $30.2 billion.
Lending to investors accounted for more than half of the March rise in housing loan commitments.
The value of new loan commitments for investor housing rose 12.7 per cent to $7.8 billion in March 2021 (seasonally adjusted), 54.3 per cent higher than in March 2020.
Sydney lags as rents continue to recover from pandemic
By Cameron Micallef
30 April 2021
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The Sydney rental market is continuing to lag behind the rest of the country, official figures have revealed.
The latest consumer price index (CPI) data released by the Australian Bureau of Statistics (ABS) showed that rental yields for investors in Sydney are now down 2.9 per cent over the last 12 months.
CPI data, which is how Australia measures inflation, is significantly lower than economists expected, which could lead to the RBA being slow to raise rates.
According to new data from the Australian Bureau of Statistics, headline inflation rose just 0.6 per cent over the March quarter to 1.1 per cent annually, which is well down on the 0.9 per cent rate recorded over the December quarter and the second consecutive fall in the series.
Why regional markets will continue to soar post-stimulus packages
By Cameron Micallef
30 April 2021
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Australia’s regional property market is tipped to continue its strong growth into 2023, despite government stimulus packages being withdrawn, new research has revealed.
Analysis by BIS Oxford Economics suggests that despite incoming bumps to dwelling supply due to government stimulus money and changing consumer preferences, regional markets are expected to remain tight.
Data released by Domain showed regional areas have outperformed over the last 12 months, with the March quarter being the first time capital cities have trumped the regions in over a year.
BIS Oxford Economics said regional property sales have been the major benefactors of government stimulus money. However, with changes in consumer preferences and significant increment to purchasing power, regional areas are likely to continue to show strong signs of growth.
Home loan demand continues to soar
By Cameron Micallef
30 April 2021
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Record-low interest rates and strong house price growth is leading to surging mortgage applications, new research has revealed.
Stats released by Equifax showed that over the March quarter demand for mortgages lifted by 23.5 per cent, continuing to outperform every other type of credit.
Demand for loans follows surging property prices, with the national median house price up for the second consecutive quarter for the first time since 2009, adding another 5.7 per cent in the first three months of 2021 – its steepest quarterly incline in almost 18 years – to reach a new record of $899,509, Domain’s latest
Australia’s booming house market won’t last long term: AMP
By Cameron Micallef
22 April 2021
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Despite Australia’s property market growing at a pace not seen for three decades, a leading economist suggests there are warning signs that the property boom could be short-lived.
Australia’s booming property market is set to slow down in 2022, following growth of 15 per cent over the next 12 months, with affordability issues, higher fixed rates and tightening restrictions tipped to act as a handbrake.
CoreLogic’s national home value index recorded a 2.8 per cent rise in March, the fastest rate of appreciation since October 1988 (3.2 per cent).