• Predictions of a housing market bubble have run rampant this year. Fingers have been pointed in all directions, including the role of loose monetary policy, negative gearing and even the Chinese. In apparent defiance of the macro concerns raised by regulators, house prices continued to rise over August, up 11.2% for the year. But not all indicators remain positive and the end may be nigh. This may prove problematic, particularly if negative gearing leads to substantial negative equity.

 

Here we go again

  • Combined capital city dwelling values are up 11.2% over the year. On one extreme, Sydney peaked the scales at 16.2%, while Canberra posted a meagre 1.4%. Thanks go to the PM for the latter, and scarcity the former.

 

 /></p>
<p> </p>
<ul>
<li>Interestingly, RP Data shows that buyer demand across the country has levelled out for the year, however transactions remain 10.8% higher than a year ago.</li>
</ul>
<p> </p>
<p><img decoding=This update does not constitute financial advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek professional advice before acting or relying on any of the content.

SHARE
Back to Insights and News

Related articles

All insights

Borrowers feel the heat of high rates

With interest rates staying elevated following a year of aggressive increases, mortgage stress is on the rise among borrowers. New data from Roy Morgan reveals that the number of Australians facing mortgage stress has increased by 724,000 since May 2022, when the Reserve Bank of Australia (RBA) began raising the cash rate from a record…
Read More

Housing market soars 40% four years after pandemic

The impact of the pandemic continues to shape Australia’s property market, four years on. Dwelling prices have exploded as factors such as population growth and limited supply drive competition for homes. According to data from PropTrack, national home values surged by 39.9% from March 2020 to March this year. Prices in regional areas soared by…
Read More

Australian SMEs grapple with rising defaults amid cost pressures

The rising cost of borrowing and reduced consumer demand are hitting small and medium-sized enterprises (SMEs) hard. Payment defaults among them have surged to a record high, making them more vulnerable to business failure. According to the latest CreditorWatch Business Risk Index (BRI), business-to-business trade payment defaults are now above pre-COVID levels and rose by…
Read More