• 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>
<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>
<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.

Back to Insights and News

Related articles

All insights

1.5 million borrowers face mortgage stress

After a year of aggressive interest rate hikes, many mortgage holders are feeling the pressure. New research from Roy Morgan shows that in the three months to July 2023, 1.5 million Australians – or 29.2% of all mortgage holders – were at risk of mortgage stress. The latest figure breaks the previous record of 1.46 million
Read More

Housing market springs back to life

Australia’s housing market has long been a significant barometer of the country’s economic health. It has faced numerous challenges in recent years, including the effects of the global COVID-19 pandemic and a price downturn in 2022. However, the most recent data collected by Domain suggests the market is quickly regaining its footing. During the three
Read More

Markets brace for uncertainty as interest rates bite

Markets brace for uncertainty as interest rates bite The June cash rate decision has dashed hopes of rate hikes coming to an end. While the increase in interest rates has affected mortgage holders across Australia, certain regions will be hit harder due to high numbers of indebted households. According to CoreLogic’s analysis of the 2021
Read More