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NSW first home buyer demand set to surge post July 1

Abolishing stamp duty for first home buyers is likely to create some headaches for eligible buyers who have recently entered into contracts. Additionally we can expect first home buyer activity to stall before surging higher on July 1 2017. The long term outcome may be self-defeating due to higher demand pushing up prices. The decision […]

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High LVR lending is easing up with a further slowdown expected

Data released by the Australian Prudential Regulation Authority (APRA) earlier this week has shown that high loan to value ratio (LVR) lending continues to fall indicating new buyers are in many instances using larger deposits.  The latest authorised deposit-taking institution (ADI) property exposures data for the March 2017 quarter revealed the ongoing trend as a […]

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How much do you need to enter the housing market?

In this week’s Property Pulse we take a look at the true cost of saving for a deposit and the impost of stamp duty for first home buyers trying to buy a home for owner occupation. The first chart highlights the 25th percentile prices for houses and units across each of the capital cities.  The […]

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Buyer demand moves off the floor in mining regions

Most mining towns have seen their property prices crushed over recent years as commodity prices have fallen and investment has dried up.  In this week’s Pulse we take a look at how some of these major mining regions are faring. As resource investment has stalled over recent years, demand for housing in towns linked to […]

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Investor mortgage demand was petering out in February and March, expect this to continue over the coming months

According to the latest housing finance data release for March 2017 there was $33.2 billion in finance commitments over the month.  The monthly value of commitments increased by 0.9% to be  5.3% higher year-on-year.  While the value of commitments to investors has slowed over recent months, owner occupier demand lifted slightly in March 2017. The […]

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Fewer buyers results in greater months of supply

Based on the relationship between demonstrated housing demand and advertised stock levels we are seeing relatively more stock available for sale compared to demand for that stock across the capital cities at the moment. The months of supply figure compares the number of unique properties advertised for sale to the number of transactions in the […]

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High-rise unit approvals have fallen off a cliff

Monthly building approvals shows that the recent contraction in approvals has continued.  In fact, the number of dwellings approved for construction in March 2017 was -23.7% lower than its historic peak which occurred in August of last year.  The data now clearly looks like a case of what goes up must come down and the […]

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The number of individuals claiming a net rental loss has flat-lined over recent years

The Australian Tax Office (ATO) released their taxation statistics for the 2014-15 financial year last week, and from a housing market perspective it provides some really valuable data on property investor behaviour. Over the 2014-15 financial year, property investors claimed $11.120 billion in net rental losses compared to $7.491 billion in net rental profit.  The […]

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Investor lending slows in February before the APRA crackdown was announced

It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6% in February; the largest fall in lending for investment purposes since September 2015.  While this is only one month of data, it […]

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The mortgage lending landscape has changed substantially over the past week

On Friday of last week the banking regulator, the Australian Prudential Regulation Authority (APRA) wrote to all authorised deposit-taking institutions (ADIs) announcing further measures to reinforce sound residential mortgage lending practices.  Since then we have seen the CoreLogic home value index showing that capital city dwelling values are increasing at their fastest annual pace since […]

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